Analysis of factors influencing the use of performance measurement indicators: the case of oil and gas companies in Tanzania.

This study analyzed the factors influencing the use of performance measurement indicators as a case for Oil and Gas companies in Tanzania. Specifically, the study was carried out to identify the influence of organizational factors, individual factors and institutional factors on the use of performance measurement indicators for Oil and Gas companies. Methodologically, a survey method was used to collect primary data in the context of Oil and Gas companies located from both upstream and downstream activities in Dar es Salaam. A total of 55 companies were involved. Analytically, the study employed descriptive statistics analytical tool and multiple regression model in arriving at the study findings. Findings from the study show that, individual factors and institutional factors have influence on the use of performance measurement indicators while organizational factors do not. Mainly, the study revealed that, flexibility of managers, competition forces and stakeholder influence significantly influence the use of performance measurement indicators. Whilst, flexibility of managers influence the use of financial indicators, stakeholders influence the use of non-financial indicators. However, competition forces negatively influence both financial and non-financial performance indicators. This put forward a number of recommendations including the following; more emphasize should be given to flexibility of manager, competition forces and stakeholder forces on using a balanced performance measurement indicators. Moreover, regulators should play their role as stakeholders on increasing their influence on the use of balanced performance indicators by the Oil and Gas companies operating in Tanzania. Nevertheless, this study used quantitative methodologies; further research could use qualitative methods in investigating the influence of organizational, individual and institutional factors on the use of performance measurement indicators by Oil and Gas companies so as to add more inputs on this academic area.