Literature Review on Oil, and Gas Companies in Oman

Running head: LITERATURE REVIEW
Literature Review
Topic: Effects of Information Technology Management on Performance Efficiency in
Selected Oil, and Gas Companies in Oman
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Author Note

LITERATURE REVIEW1
Introduction
A literature review is a process of survey, and evaluation of the scholarly sources
related to a particular topic.” Literature review” is a significant consideration of a research
study as it given an inclusive summary of the earlier researches, and the works that has been
conducted in the chosen field of the study. The aim of this chapter is to enumerate, describe,
summarize, and evaluate the previous researches, and works of the other researches that has
been conducted in this field. This chapter will discusses the published information, in relation
to IT management in top hierarchal position in oil, and gas (O & G) companies. The
importance of IT management with the strategic organizational value of an organization
evaluated in this chapter, which will form the base of the further researches to be conducted
in this field. In this chapter, the various sources are summarized to get an idea of the link
between IT management, and organizational flexibility in oil, and gas industries.
Management of the information technology needs of an organization becomes a necessity as
it helps in management of the key functionalities of the organization in an effective manner.
The undertaken literature review provides a comprehensive understanding of the need
of managing the IT needs of the O & G industry of Oman to investigate the benefits, and
impact of the same on the organizational performance. Technology has a remarkable effect
on the administration process of the internal processes of the gas, and oil industry. The effect
is significantly large from the managerial as well as the decision making perspective of the
organization (Badpa, Salim, and Yahaya 2018). The effect of IT in O & G sector can be seen
in terms of productivity of a particular organization. The planned, and effective use of IT in
an organization has a significant consequence on increasing the efficiency of the performance
of O & G companies (Ahmad et al. 2016). The recent advancement in the field of technology
has made it mandatory for the O & G industries to invest on improving the IT needs of their

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organization so that the operational efficiency of these organization can be improved. The
literature review aims in exploring the impact of ICT on the performance of oil, and gas
industry in OMAN (Yusuf et al. 2014). The economy of OMAN is largely influenced by its
O & G sector, and therefore it becomes essential to evaluate the existing researches in this
field to understand the how management of Information Technology has affected the
performance efficiency of O & G companies in OMAN. The adoption of IT in oil, and gas
companies in OMAN particularly aims in improving the efficiency, and effectiveness of the
operation, and to aid the decision making process associated with these companies (George et
al. 2016). The literature review evaluates the organizational needs of implementing
Information, and communication technology in an organization. Along with that, the various
factors that can affect the implementation of ICT within an organization are further evaluated.
The adoption of ICT within the organization is further essential to address the degree of
improbability in today’s competitive oil, and gas industry. With an aim of succeeding in this
dynamic environment, the O & G companies of OMAN capitalize on the information, and
technological needs in of the organization.
In the following paragraphs, the researches related to implementation of IT in several
companies in OMAN are evaluated to understand the level of authority that should be granted
to the IT managers to ensure effective utilization of the benefits offered by the ICT in these
industries. The literature review further evaluates the relationship between IT management,
and the strategic organizational value related to O & G companies in OMAN.
Information Technology Management in Oil, and Gas Companies
According to Shukla, and Karki (2016), a growing quantity of O & G companies in
Oman have resulted in the need of understanding the requirement, and the benefit of
implementation of ICT in those industries. A number of companies linked with O & G sector
in Oman have implemented or have made use of ICT to enhance the operational efficiency.

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Proper management of the Information technology needs of an organization helps, and
organization in developing products, and the services in accordance to the requirements of
their clients. Rui et al. (2017), indicate that a number of oil, and gas companies in Oman
have invested in integrated information system with an aim of improving the key operations
of the organization, which include marketing, production, communication, and logistics
(Badpa, Salim, and Yahaya 2018). The recent trends indicate that adoption of ICT is not
particularly associated with only multinational O & G companies but also with the small local
companies of Oman as well. Majority of the O & G companies of Oman have built up certain
substantial financial resources, and competence to compete with the major players of the
industry. However, there are several issues that can be identified in these companies, which
are related to lack of experience in making use of cutting edge technology, and the business
process. In this world of emerging technologies, IT has formed an important part of the
industries. The revolution of ICT in oil, and gas sector in the recent years is quite noteworthy.
The technological innovations has largely contributed in improving the computing, and
telecommunication capacity of the oil, and gas companies in Oman. A strong interest in
adoption of IT has made it possible for the companies to realize the benefits of IT in
management of the internal processes of oil and gas sector (Badpa, Salim, and Yahaya 2018).
There are a number of benefits that can be realized by the O & G companies by effective IT
management within the organization. For example, effective IT management within the
organization increases the production capabilities of the organization, which in turn increases
the organizational and business profits. The investment capabilities of the organization are
further improved an effective IT management aids the decision-making process within an
organization. Management of IT in the oil and gas sector is not only essential to improving
the organizational efficiency but also helps in increasing the customers’ satisfaction.
According to Abdul-Rashid et al. (2017), organizations generally rely upon information

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technology to improve their performance, and therefore, effective management of
information and communication technology is important to increase the competitive
advantage of the organization.
Since the role of Information Technology is quite integral in O & G sector in Oman, it
is significantly imperative for those companies to invest in management, and implementation
of IT in these companies. Several O & G companies of Oman which include Qatar
Petroleum, Emirates National Oil Company Limited ENOC, Kuwait National Petroleum
Company, Petroleum Development Oman (PDO) have strongly invested on the information
technology needs of the organization to ensure that all the operational process related to
extraction of crude oil, and development of the petroleum, to deliver of the finished products
to the customers are managed efficiently (Badpa, Salim, and Yahaya 2018). This further
helps in increasing the competitive advantage as well.
The implementation of IT in improving the customers’ service in an organization is
quite common, and this is the case for the O & G companies in Oman as well. Therefore, it
can be indicated that information technology are impacting the management in every surface
of the organization. The development of an IT model in the O & G sector has turned out to be
a necessity mostly because it aims to integrate the different activities, and key operations of
the organization (Kelland 2014). However, there is no denying the fact that the O & G
industry of Oman have been quite slow in adopting the information technology. There has
been several reasons behind the slow adoption of IT in oil, and gas sector. Proper
management of IT in oil and the gas sector becomes a necessity, particularly because the
customers, investors, and the communities are largely benefited by optimal use of IT in the O
& G sector.
1.1. Why is IT management necessity in O & G companies?

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Information Technology is crucial for the operation of the oil, and gas industry, and
this is a primary reason behind the increase in the demand for IT services in the oil and gas
companies. Technology is helping the oil and gas industries to cope up with the
organizational operational needs, and management of the complex business operations
(Lunardi et al. 2014). The O & G industry of Oman is needed to undertake the opportunity of
the digital transformation to manage the key work processes both at the operational level and
managerial level. Without effective IT management, it becomes problematic for the O & G
sector to optimize their performance, and to improve the competency, and the ability of their
workers. Several pieces of research indicate that information technology is a significant issue
of the O & G industry, yet its adoption is equally essential to increase organizational and
business efficiency.
Effective use of IT is necessary as it helps in controlling the cost. The efficiency of
Information Technology lies in the fact that IT provides an effective way of controlling the
cost of production. The use of IT can significantly contribute to improving the operational
efficiency, and therefore, effective management of IT is necessary (Reichert, and Zawislak
2014). IT management is further necessary for the O & G industry to decrease the production
cost, and to survive the era of cheap oils (Badpa, Salim, and Yahaya 2018). The O & G sector
is needed to capitalize on the business efficiency offered by the O & G sector to ensure
maximum profits.
2. Relationship between IT management and Strategic Organizational values
IT management is linked with strategic organizational value, and therefore, efficient
management of Information and technology needs of an organization becomes a necessity.
Strategic organizational values are mostly related to product leadership, customer
satisfaction, and organizational efficiency. Strategic value management within an

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organization further becomes a necessity to increase the competitive advantage (Al-Mascati,
and Al-Badi 2016). Consideration of the organizational values is important as it represents
the goals mission and vision of an organization. The implementation and efficient
information technology contribute to the management of the key organizational values, which
in turn increases organizational efficiency. The strategic organizational values are related to
long term organizational goals, and therefore correct usage of the IT in management of the
strategic needs of the organization becomes a necessity.
The key strategic values that can be identified in the majority of the leading O & G
companies in Oman, such as in PDO, include, a commitment to sustainability in an
“environmentally friendly way,” a commitment to “innovation, and excellence,” a
commitment to building strong communities. The fulfillment of these key strategic values is
subjected to the understanding of the correct usage of Information, and communication
technology, which in turn can contribute to increasing operational efficiency, and in
improving the organizational excellence.
As per the views of Khadem, Piya, and Shamsuzzoha (2018), linking the use of IT
with the organizational strategy is important to achieve a successful organizational
performance, and therefore a considerable amount of contribution from the O & G sector
becomes a necessity in addressing the current issues that have been faced in the major O & G
companies in Oman (Badpa, Salim, and Yahaya 2018). The organizational performance in
any O & G company can be assessed using a multidimensional perspective of criteria based
on productivity and the use of IT systems (Al-Mascati and Al-Badi 2016). There is no
denying the fact that there is a noteworthy association between the IT needs of an
organization, and the core organizational values. The presence of an effective organizational
structure play an important role in management of the strategic organizational needs.
Strategic organizational value of any oil and gas company can be influenced by several

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factors, one of which is the use of technology (Ashrafi et al. 2014 ). IT has the capability of
creating value for the organization by providing quality services to the clients, and by
managing the major risks that can affect organizational productivity. IT is significantly used
in the management of innovation and in the delivery of effective services to the customers. It
is of significant necessity to address the process in which an organization can provide the best
services to its customers in order to gain maximum profits.
IT management in an organization becomes a necessity as there is an increasing need
to provide quality services to the clients, enhance the decision making process, and ensure
maximum efficiency of the in all the works that are being performed (Kelland 2014).
Management of the strategic organizational value is further related to understanding the
environmental, and the societal impact of the services, and products offered by the Company.
Thus the introduction of the IT technology becomes a necessity in competing against
majority of the competitors of the leading oil and gas companies in Oman. Perrons (2014),
outlines the need of investing in ICT in management of the quality. Offering good quality
products is one of the key strategic values of an organization, and therefore, effective quality
management practices within the organization become a necessity. Furthermore, the correct
use of IT can enable an organization to obtain certain information which can in turn improve
a firm’s position of adapting to the changes. Several types of research in the O & G sector
have conceptualized the use of IT as a significant tool to manage the internal resources of the
organization, one of which is the strategic values (Badpa, Salim, and Yahaya 2018).
Therefore, it is of foremost necessity to provide an increased focus on the information
technology needs of the oil and gas industries. Quality management is a necessary need of the
O & G companies of Oman as it is the key to increase customers’ satisfaction and
management of the requirements of the customers. The O & G companies should therefore
work on analyzing the competence related to their present IT resources to address the key IT