IMPACT OF FORCE FACTORS ON THE BENEFITS OF DIGITAL TRANSFORMATION IN THE OIL AND GAS INDUSTRY IN THE STATE OF QATAR

Abstract

The oil and gas industry contributes significantly to GDP of Qatar and many other developing countries on the globe. Therefore, the activities of the industry especially its performance and efficiency are critical to their economies. However, since the global drop in the prices of oil and gas products, there have been many efforts on the part of management of these organizations to increase their efficiency and performance. One of the strategic steps suggested by scholars and commentators in industry that should be taken by oil and gas organizations to boost their efficiency and increase their performance is the introduction of digital transformation. In view of the above statement, this study critically investigated the impact force factors on the benefits of digital transformation in the oil and gas industry in Qatar. The researcher adopted the sequential mixed method and collected cross-sectional data using semistructured interviews and structured self-report questionnaire from 5 managers and 140 employees from the refinery operations. Three research questions and four hypotheses were tested using thematic analysis to analyse the responses to the semi-structured interviews, while structural equation model (SEM) was conducted to test the research model. The result from the thematic analysis revealed that perception of digital transformation was adversely affected by the leaders’ perception of its costs in financial terms, security, and data breaches, which might arise from using a business digital platform. It was also revealed that digital transformation was perceived as being beneficial as the respondents indicated that it could improve performance and efficiency, however, they were weary of its implementation in the entire organization. The SEM showed that perceived risk and perceived opportunity from adopting digitalization, as well as digital organizational culture were significant predictors of perception of digital transformation in the model. Perceived opportunity and digital organizational culture predicted digital maturity. Digital maturity mediated the relationship between perceived opportunity and digital transformation. In conclusion, perceived risk, perceived opportunity, and digital organizational culture were predictors of perception of digital transformation in the oil and gas industry. In view of this findings, suggestion was made regarding reducing the perceived risk and enhancing perceived opportunity with the aid of the organization culture and learning in order to change the perception of digital transformation among key stakeholders.