Extent of Suppliers Bargaining Power Relative to Performance of Oil Industry in South Sudan

Abstract

The purpose of this study was to examine the extent of bargaining power of suppliers on performance of oil industry in South Sudan. The specific research question was: What extent of bargaining power do suppliers have relative to performance of oil industry in South Sudan? The research design employed was descriptive research and analytic research with questionnaire as the main data collection instrument. All oil firms operating in South Sudan were involved in the study with middle and top managers as respondents. A total of 84 self-administered questionnaires were distributed but only 66 were filled and returned representing a 78.6% response rate. The study found out, the bargaining power of suppliers have positive significant effects on performance of the oil industry in South Sudan. This research recommends that the government should effectively develop oil investment policy and implement it as to guard against monopoly of oil industry by few suppliers which is against the normal market forces. As an emerging market with high oil capacity, monopolization will destroy oil industry in South Sudan hence the need for proper control from the government.