EXTERNAL ENVIRONMENTAL FACTORS AND ORGANIZATIONAL PRODUCTIVITY IN SELECTED OIL SERVICE FIRMS IN PORT HARCOURT

Abstract

This work examined the effect of external environmental factors on organizational productivity in oil service firms in Port Harcourt, River State. Relevant conceptual, theoretical and empirical literatures were reviewed. Resource dependency theory was employed as the theoretical framework. The study adopted survey research design. The population of the study constituted one thousand eight hundred and seventy five employees from twenty selected oil service firms. The sample size for the study is 330. Political factors, technological factors, economic factors and socio-cultural factors were employed as the independent variable while organizational productivity was employed as the dependent variable. The data generated through questionnaire were analyzed using multiple regression analysis. The study found that technological factors have significant effect on organizational productivity. The study also found that political factors have significant effect on organizational productivity. The study further found that economic factors have significant effect on organizational productivity. The study further revealed that socio-cultural factors have significant effect on organizational productivity. The study therefore, concludes that external environmental factors have significant effect on organizational productivity in oil servicing firms in Port Harcourt. The study recommended that oil service firms should proactive in dealing with the changes and trends in external environmental environment in order to be productive and keep up with competition.