Do Industry Forces Affect Small and Medium Enterprise’s Investment in Downstream Oil and Gas Sector? Empirical Evidence from Ghana

The implications of macroenvironmental forces and SMEs investment behaviour in the energy sector: the role of supply chain resilience

“…Unarguably, the Porter 5 forces model has been reported as exerting strong influence on companies operating within a given industrial. In the oil and gas sector the model has been proven that a huge capital is required to enter the industry, lower supply bargaining power, lower Buyers bargaining power, limited substitutes and moderate competitive rivalry even in the downstream where the present study is focused ( Appiah et al., 2021 ). Sequel to the above, the PESTLE model is employed in the current study to determine how the dimensions of the model such as political, economic, social, technological, legal, environmental, demographic, ethical, and regulatory impact on corporate investment intentions.…”

“…Unarguably, today's complex business environment is saturated with micro and macro levels influences which imperatively require adequate research, policy and practical attention (Appiah et al, 2021). Macroenvironment contains variables that are beyond the control of an organization, but which nevertheless must be analyzed in order to adapt business and investment strategies to the changing business environment (Johnson et al, 2008;Appiah et al, 2018Appiah et al, , 2021. As asserted by Appiah et al (2018) political, economic, social, technological, legal, environmental, demographic, ethical, and regulatory are considered the major forces of the macro environment.…”

“…Due to the importance of the oil and gas industry, there is a need to study the macro environment and identify external forces that affect sustainable investment. Sustainability issues can be effectively addressed with a good understanding of the oil and gas environment and the forces that encourage or hinder behavioural intentions to invest ( Johnson et al., 2008 ; Appiah et al., 2021 ).…”

“…Identification of relevant criteria that influence the environment can be done by extracting factors and causal factors from other models that examine the business environment. Two models are used in this study: The Porter's five forces model and the PESTEL model (political, economic, social, technological, environmental and legal factors) ( Johnson et al., 2008 ; Appiah et al., 2021 ). Porter's five forces model is mainly used to develop competitive strategies.…”

“…Porter's intention was to create a general model that would help organizations realize the impact of external scenarios on their overall performance ( Porter, 1980 ). The application of this model can provide companies with useful information to evaluate the industry in which they operate and develop appropriate competitive strategies ( Appiah et al., 2021 ). Competition is the basis of a company's success or failure.…”