THE EFFECT OF CAPABILITY MANAGEMENT PRACTICES ON ORGANIZATIONAL PERFORMANCE IN THE NIGERIAN OIL AND GAS SECTOR

Abstract

This study examined the effect of capability management practices on organisational performance in the Nigerian oil and gas sector. Specifically, it investigated the effects of knowledge management capability, technological capability, intellectual capability, and human capital capability on organisational performance. A descriptive survey research design was adopted. The study population comprised employees of Midwestern Oil & Gas Company Limited and Sterling Global Oil & Gas Limited, both located in Kwale, Delta State. A sample of 100 respondents was determined using the Taro Yamane sample size formula, while stratified sampling was employed to ensure adequate representation. Data were collected from both primary and secondary sources and analysed using correlation and multiple regression techniques. The findings revealed that knowledge management capability, technological capability, intellectual capability, and human capital capability each exerted a positive and statistically significant effect on organisational performance. Among these, human capital capability had the strongest influence, indicating that employees' experience, knowledge, and competencies enhance decision-making, operational efficiency, and overall organisational performance. The study concluded that capability management practices are critical drivers of organisational performance in the Nigerian oil and gas industry. It therefore recommends that management should prioritise the recruitment of qualified personnel, continuously assess employees' competencies, and strengthen staff development initiatives through regular training and capacity-building programmes to sustain organisational performance.