Date of Conferral
Petroleum-producing companies in Nigeria were forced to increase spending on Nigerian-sourced materials and services from $8 billion to $13 billion since 2010, due to the Nigerian Oil and Gas Industry Content Development Act. The act was enacted in 2010 to support local firms and improve the companies' performance. However, there is sparse research on how the act affected the companies' performance. This study was an examination of the impact of the act on the companies' performance. Bandura's social cognitive theory was the theoretical framework. The research questions of this descriptive correlational study were used to examine the act's effect on employee and organizational performance. The independent variable was employees' perception of the level of implementation of the act. The dependent variables were employees' perceived task and perceived organizational business performance. Collection of interval level survey data from 372 full-time employees of the 5 major petroleum-producing companies in Nigeria was possible by anchoring only the ends of the Likert scale with words. The Pearson product-moment correlation results indicated that the independent variable correlated positively with each dependent variable. The exploratory factor analysis results indicated that the act had a positive effect on the employees' internal competence factor and the organizations' operational performance factor. The results are significant for Nigerian government officials and managers of the companies in understanding the impact of the act on performance. The outcomes have potential implications for positive social change through improved implementation strategies to achieve the objectives of the act. Researchers could focus on examining the impact of the act on employees' internal competence factor in future studies.