Exploring the Moderating Effects of Firms' Experience

This study investigates the moderating effects of firms’ experience on the relationship between supply chain risk management strategy dimensions and business performance of oil and gas marketing companies in Lagos State. The study adopted a cross-sectional research design; 1,044 employees of five selected oil and gas marketing companies constituted the population of the study and a sample size of 362 was derived using Krejcie and Morgan formula. The study employed mixed sampling technique; purposive, stratified and proportionate sampling. Primary data were gathered through self-administered questionnaire and 332 copies were retrieved, representing approximately, 91.7% response rate and later used for analysis. The study employed descriptive statistics and hierarchical multiple regression analysis to derive meaning from the data. The findings showed that the relationship between supply chain risk management strategy and business performance of oil and gas marketing companies in Lagos State, is significantly moderated by firms’ experience (β = -0.134, t = -6.169, p < 0.05). This implies that experience enables firms to develop organisational routines to be able to perform their activities with more efficiency and this may better their performance. It is recommended that management of oil and gas marketing companies should incorporate good risk management strategies such as risk-avoidance, risk-reduction, risk-transfer and risk-acceptance in their operations.