The Impact of the Internal Environment on Organizational Performance: A Field Study on the Sharara Al-Dhahabiya Oil Company

Abstract

This study aims to examine the impact of internal environmental elements on organizational performance, through an applied field study conducted on Al-Sharara Al-Thahabiya Oil Company in Tripoli, Libya. The research focused on four main variables representing the internal environment: organizational structure, human resources, financial resources, and organizational culture, and their relationship with the organization’s performance.

The descriptive analytical method was employed to achieve the study’s objectives. Data were collected using a questionnaire distributed to a simple random sample of 130 employees out of a total study population of 220 employees. The data were analyzed using arithmetic means, simple linear regression, and multiple linear regression.

The results indicated that the availability level of the internal environmental variables ranged from moderate to good. Organizational culture had the greatest influence on organizational performance, followed by financial resources, human resources, and then organizational structure. The results also revealed a low level of job satisfaction among employees due to the lack of sufficient incentives and motivation methods.

The study concluded with several recommendations, most notably: the need to support human resources and attract qualified talents, promote administrative decentralization, improve the organizational environment, and provide adequate funding to develop the company’s infrastructure.