Contract Lifecycle Management, Compliance Risk, and Value for Money in Multinational Procurement Units Operating in Energy Firms in Nigeria

Abstract

This study investigates the relationship between contract lifecycle management (CLM), compliance risk, and value for money (VfM) in multinational procurement units operating in energy firms in Nigeria. Anchored on institutional theory, the study explains CLM as an organisational response to regulatory scrutiny, audit expectations, and professional norms, and examines whether compliance risk represents a key mechanism through which CLM protects procurement value. A quantitative, explanatory research design was adopted using a cross-sectional survey of procurement and contract professionals drawn from multinational energy firms operating in Nigeria. Data were analysed using partial least squares structural equation modelling (PLS-SEM), with reliability, validity, and bias diagnostics undertaken prior to hypothesis testing. The results indicate that CLM has a positive and statistically significant effect on VfM, and a negative and statistically significant effect on compliance risk. Compliance risk is also found to have a negative and statistically significant effect on VfM. Mediation analysis shows that compliance risk partially mediates the relationship between CLM and VfM, indicating that CLM improves procurement value both directly through stronger lifecycle discipline and indirectly through reducing compliance exposure. Robustness checks confirm the stability of the main relationships across alternative specifications and control adjustments. The study concludes that strengthening lifecycle governance, particularly approvals, audit trails, performance monitoring, and change control, is critical for reducing compliance-related value leakage and improving VfM in contract-intensive energy procurement environments. The study contributes to procurement governance literature by integrating CLM and compliance risk within a single explanatory model and provides actionable insights for multinational procurement leaders seeking to improve contract outcomes in Nigeria’s energy sector.