REVERSE LOGISTICS AND FIRM PERFORMANCE OF OIL AND GAS FIRMS IN RIVERS STATE, NIGERIA

Abstract

This study examined the relationship between reverse logistics and firm performance of oil and gas firms in Rivers State, Nigeria. Specifically, the study investigated the relationship between reverse logistics and sales growth, as well as the relationship between reverse logistics and market share of oil and gas firms operating in Bonny, Rivers State. The increasing pressure on oil and gas firms to adopt environmentally responsible operational practices, alongside growing strategic imperatives for revenue optimisation and market competitiveness, provided the impetus for this inquiry. Grounded in the Resource-Based View (RBV) theory (Barney, 1991; Hart, 1995), the study posited that reverse logistics constitutes a strategic internal resource capable of generating competitive advantage and improving firm performance outcomes. A cross-sectional survey design was adopted, and structured questionnaires were administered to 57 senior staff of four oil and gas firms in Bonny, Rivers State. A total of 53 usable questionnaires were retrieved and analysed. The Spearman Rank Order Correlation Coefficient was employed to test the stated hypotheses using SPSS version 26. The findings revealed a very strong positive and statistically significant relationship between reverse logistics and sales growth (rₛ = 0.975, p < 0.01), and a strong positive and statistically significant relationship between reverse logistics and market share (rₛ = 0.754, p < 0.01), both significant at the 0.01 level. The study concludes that reverse logistics practices significantly improve firm performance in the oil and gas industry and recommends that oil and gas firms formalise and strategically integrate reverse logistics into their operational frameworks as a critical driver of performance improvement.