THE ROLE OF COGNITIVE CAPITAL DEVELOPMENT IN THE STRATEGIC ALLIANCE SUCCESS OF OIL AND GAS SERVICING FIRMS IN BAYELSA STATE

Abstract

This study examined the role of cognitive capital development in the outcome of strategic alliance success (resource complementarity, mutual benefits, and collaboration). The study was designed as a correlational study, and utilised a quantitative methodology in its investigation. Data was generated using the structured questionnaire, which was administered to 42 management staff of 21 selected indigenous oil and gas servicing firms in Bayelsa State. Instrument validity was assessed using the content validity, and reliability assessed using the Cronbach alpha (0.70 benchmark). Three related null hypotheses were tested using the Structural Equation Modelling (SEM), specifically, the path analysis. The findings affirm to the significance of cognitive capital development in advancing strategic alliance success, specifically as it relates to resource complementarity, mutual benefits and collaboration. It was therefore concluded that the relationship between cognitive capital development and strategic alliance success of indigenous oil and gas firms in Baylesa State is significant and positive; implying that actions tailored toward compliance and the aligning with overarching values, enhances the strategic alliance success of the indigenous oil and gas servicing firms. It is therefore recommended that indigenous oil and gas servicing firms build on ensuring compliance to overarching frameworks within their industry and context.