Stakeholders' Engagement and Performance Efficiency at Oil and Gas Industry in Yemen

Abstract

Oil and Gas industry in Yemen is considered as the biggest and variable sector. Therefore, the performance efficiency is very important to be attained during all the activities and phases that include searching, drilling, upstream, midstream, and downstream. As a crucial factor, stakeholders’ engagement theories have been emphasized the central role of stakeholders’ engagement to strategic planning efforts in contemporary organizations. This study therefore examined the impact of stakeholders’ engagement on the performance efficiency (time, cost, and quality) at the Yemeni oil and gas industry. The quantitative method was employed and online questionnaire was used as a primary source for collecting data. The sample size was 312, selected from three oil and gas companies; namely; Yemen Liquid Natural Gas Company, Safer Exploration and Production Oil Company and OMV Company. This study targeted managers and non-managers. The results show that stakeholders’ engagement has a significant relationship with the performance efficiency. In addition, stakeholders’ engagement has a significant impact on the performance efficiency. The results suggest the consideration of early stakeholders’ engagement in the planning, development, implementation, controlling and evaluation the performance. Managers should enhance every step regarding the participation of the stakeholders in the decision-making process. In addition, more effective practices will support achieving performance efficiency.