effective and collaborative procurement on organization profitability
TRANSCRIPT
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IMPACT OF
EFFECTIVE AND COLLABORATIVE
PROCUREMENT ON ORGANIZATION
PROFITABILITY
IN OIL & GAS SECTOR OF PAKISTAN
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RESEARCH QUESTION
What is the impact of effective and
collaborative procurement on the
organizations profitability in oil and gas
sector in Pakistan?
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OBJECTIVES OF STUDY
To determine and identify the effectiveness of the collaborative and
effective procurement.
The extent to which the effective procurement is having an impact on
the profitability of organization.
The extent to which the collaborative procurement is having an impact on the profitability of organization.
To find out the relation among the three variables such as effective
procurement, collaborative procurement and organizations
profitability.
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IMPORTANCE OF THE STUDY
This study will be beneficial for that have slow processes and facing loss. It will help
out the companies to implement the processes effectively and save the company
from failure.
Oil and gas sector is one of the fastest growing sector of Pakistan. The
procurement is the most important area for the profitability of this sector.
The study will benefit the oil and gas sector to further progress and achieve
success by means of applying this approach in every area and department
where the procurement is currently in progress.
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SCOPE OF THE STUDY
The main focus of this study is to find out the impact of the effective
and collaborative research on the profitability of organization.
The goal is to motivate the oil and gas sector towards adopting this
approach to have a better outcome and progress.
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SIGNIFICANCE OF THE STUDY
Past research on GENERAL BASIS.
FIRST TIME IN PAKISTAN and targeting Oil and Gas sector.
This sector is vital for economy attracting foreign investment.
The Current Oil Scenario In The World.
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Literature Review
Keshinocak & Savasaneril (2008) emphasized the importance of collaborative
procurement as one of the initiative towards enhancing the collaboration and
synchronization among companies and it is also very essential for the mutual profit
Further, it is suggested by Dixon (2010) that in order to meet the competitiveness,
collaborative work and all the project management education must be elaborated
in the form of collaborative work.
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RESEARCH METHODOLOGY
The focus of this study is to find out and analyze the factors of the supply
chain management such as effective procurement and collaborative
procurement.
In order to accomplish this, the questionnaires were distributed among the
managers and the employees working in the oil & gas companies located in
Islamabad. & Rawalpindi.
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THEORETICAL FRAMEWORK
Organization
Profitability
Effective
Procurement
Collaborative
Procurement
Independent Variables Dependent Variables
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HYPOTHESIS
H1: Effective procurement is positively and
significantly correlated with profitability of an
organization.
H2: Collaborative procurement is positively and
significantly correlated with profitability of an
organization.
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SAMPLING Oil & Gas Companies in Isb. & Rwp.
SAMPLING TECHNIQUE Convenience Sampling approach
SAMPLE SIZE
People targeted for the data collection purpose was 250
The questionnaires that we got back were 150
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DATA COLLECTION METHOD
PRIMARY DATA COLLECTION
Help of the survey by means of the distribution of the
QUESTIONNAIRES.
SECONDARY DATA COLLECTION
Help of the studies and researches that are done in the past.
The digital libraries such as jstor, springerlink, interscience were
being utilized.
RESEARCH INSTRUMENT
Likert scale QUESTIONNAIRE
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Correlation analysis
Correlations
1 -.112 .233**
.172 .004
150 150 150
-.112 1 -.090
.172 .274
150 150 150
.233** -.090 1
.004 .274
150 150 150
Pearson Correlation
Sig. (2-tailed)
N
Pearson Correlation
Sig. (2-tailed)
N
Pearson Correlation
Sig. (2-tailed)
N
Ef fectiv eProcurement
CollaborativeProcurement
OrganizationProf itability
Ef fectiv e
Procurement
Collaborative
Procurement
Organization
Prof itability
Correlation is signif icant at the 0.01 level (2-tailed).**.
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Regression analysis
F = 45.61,
R² =.058, Adjusted
R² = .046
Coefficientsa
2.577 .471 5.476 .000
.346 .124 .226 2.804 .006
-.066 .083 -.065 -.801 .424
(Constant)
Ef fectiv eProcurement
CollaborativeProcurement
Model
1
B Std. Error
Unstandardized
Coef f icients
Beta
Standardized
Coef f icients
t Sig.
Dependent Variable: OrganizationProf itabilitya.
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Investigated Hypotheses
H1: Effective procurement being determinant of
OP is positively correlated to it.
H2: Collaborative procurement is negatively
correlated with the profitability of organization.
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DISCUSSION, CONCLUSION & RECOMMENDATIONS
Oil and gas sector is the largest industry for the E & P of Oil and Gas.
Industry is very well aware of the significance of the procurement.
Research results support Effective procurement but not support Collaborative
Procurement.
Effective procurement plays an important role in enhancing the profits for the
organization.
For collaborative procurement companies think that this will be a risk and failures if
associated with the other company procurement department.
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LIMITATIONS
We faced limitations while gathering the secondary data.
Topic that we selected for study is new and unique
therefore the very little research was done on all these
factors.