Effect of Governance Considerations on The Performance of Companies in South Sudan’s Oil and Gas Sector
DOI:
https://doi.org/10.53819/81018102t3112Abstract
The oil and gas sector in South Sudan face significant governance challenges, including, lack of transparency from IOCs, and unethical practices in the operating companies, which hinder its performance and sustainability. The study addresses the critical gap in understanding the impact of governance considerations on organizational performance in this vital sector. The purpose of this study was to investigate the effect of governance practices, such as transparency, accountability, and ethical management, on the performance of oil companies in South Sudan. Anchored in Institutional Theory, the study examined how external pressures and governance frameworks influence organizational outcomes. The study employed a descriptive correlational research design, targeting oil companies operating under three main consortiums, with senior managers as the respondents. A census sampling technique resulted in a sample size of 71 participants, and data were collected using structured questionnaires and secondary financial performance records. Data analysis involved descriptive statistics, correlation, and regression analysis using SPSS version 27. The results revealed a significant positive relationship between governance considerations and organizational performance, with governance practices explaining 55.2% of the variation in performance. The study concluded that robust governance frameworks are crucial for enhancing operational efficiency, financial performance, and stakeholder trust in the oil and gas sector. It is recommended that policymakers enforce mandatory governance standards, including transparency and accountability measures, to ensure long-term sustainability and competitiveness.
Keywords: Governance, Performance, Companies, South Sudan, Oil, Gas
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