Literature Review: IT Management Impact on O&G Performance in Oman

This literature review examines the effects of Information Technology (IT) management on the performance efficiency of selected oil and gas companies in Oman. The review explores the importance of IT management in the context of strategic organizational value, highlighting the benefits of effective IT management, such as increased production capabilities, improved investment capabilities, and enhanced decision-making processes. The study investigates the relationship between IT management and strategic organizational values, emphasizing the significance of aligning IT with organizational strategies to achieve successful performance. The review also discusses the slow adoption of IT in the O&G sector, emphasizing the need for effective IT management to control costs, enhance operational efficiency, and ensure customer satisfaction. Various research papers and studies are summarized to provide a comprehensive understanding of the role of IT management in the O&G sector of Oman.

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

1LITERATURE REVIEW
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

2LITERATURE REVIEW
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.

3LITERATURE REVIEW
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

4LITERATURE REVIEW
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?

5LITERATURE REVIEW
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

6LITERATURE REVIEW
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

7LITERATURE REVIEW
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

8LITERATURE REVIEW
needs of the organization (Jafari, and Nair 2018). IT competence mainly represent a degree to
which a firm is able to effectively manage the information needs of the firm. With the recent
advancement in the field of IT, and use of modern technologies in O & G companies, it
should not be a problem for the major O & G companies to adopt to the new technologies.
The problems that are currently being faced in the major O & G industries can be easily
addressed . IT competence of the O & G industry in Oman is a necessity to manage the
strategic organizational values. Therefore, it is compulsory for the IT leaders of the leading
oil, and gas firms to understand the technological opportunities, and recent advancement in
the field so that those opportunities can be used to increase the operational efficiency of the
firm (Badpa, Salim, and Yahaya 2018). The IT leaders should work on aligning the IT needs
of the organization with the strategic organizational value. Identification of the key
opportunities related to the major business processes of the organization becomes a necessity
to keep a pace with the recent technological advancements. It is necessary for the IT leaders
to understand the importance of working with the recent technological trends which include
digitization, robotics, and artificial intelligence (Agrawal 2019). The digital strategy should
be aligned with the organizational values that will ensure effective management of the
organizational processes, which has the capability of reshaping the business processes of the
major O & G companies in Oman.
(Kelland (2014), argues that effective IT management is necessary for O & G
companies to manage their strategic organizational values. IT management is necessary for
the major O & G companies in Oman which include Kuwait National Petroleum Company,
Saudi Aramco, Emirates National Oil Company Limited ENOC, Executive Management
Committee, and Qatar Petroleum. Several management issues are identified in the mentioned
organizations which can be solved by managing the key IT needs of the organization (Garbie
2016). There have been several issues related to IT management in those O & G companies.

9LITERATURE REVIEW
The issues in the IT management of the organization are impacting the business processes
including the price of the oil. Oil prices have a noteworthy consequence on the financial
enactment of the corporate firms. The oil production process can be significantly improved
by managing the essential IT needs of the organization (Al-Mascati, and Al-Badi 2016). The
effect of Technology, and Digitization is quite significant in all the business sectors across
the world. Therefore, it is of foremost necessity for the O & G sector of Oman to understand
the importance of investing in IT management within the organization (Saxena 2016). The O
& G industry of Oman is an industry where digitization has not reached an appropriate level
as the industry is still being seen to make use of traditional processes in management of the
internal operations.
Effective IT management is a major issue in those organization mostly because there
is a lack of a centralized IT management department to identify, and manage the key IT needs
of the organization. Digital transformation initiatives is a necessary need for the O & G
companies to address the specific areas of improvement. IT needs within a particular
organization can be easily identified by addressing the key operational issues (Al Shoaili
2015). Thus it can be indicated that IT management is directly linked with the strategic
organizational values. The improvement of the IT needs of the leading O & G companies in
Oman can suggestively contribute in management of the strategic organizational values. The
findings from the existing literature indicate that IT management in these organization is to
be managed from the top hierarchal position. Lack of an effective IT management perspective
within these O & G companies are the key reasons behind the major organizational
inefficiencies (Ashrafi et al. 2014). The O & G companies are needed to make an effective
utilization of the benefits offered by IT to ensure that the key strategic values of the
organization are fulfilled. However, the effective utilization of the IT management can be
possible only if the right level of authority is granted to the IT managers.

10LITERATURE REVIEW
In this regards, it is critically essential to check if IT management within the
organization jeopardize the strategic values of the organization (Al-Mascati, and Al-Badi
2016). Value management process within the organization is a lengthy process that is linked
with management of the major operations. It management has become a necessity for
management of the key strategic values, and therefore, it does not jeopardize the strategic
values of the organization (Ali, Ashrafi, and Busaidi 2015). The strategic values of the O & G
companies of Oman is directly linked with the organizational strategic management. The
strategic management of a firm encompasses the management of business strategies, and
functional strategies. The traditional approach of strategic management within the
organization does not put much emphasis on the use of IT in management of the key
organizational processes.
3. Need of IT management in Oil, and Gas Companies
The findings from the previous section shows that IT management in O & G
companies does not jeopardize the strategic values of the organization but helps in increasing
the operational efficiency in terms of cost, and human resource management (Choi, Lee, and
Song 2017). Human resource management is a necessary need for increasing the
organizational efficiency, and the key operational processes of the O & G sector. The major
operational process of oil, and gas companies is related to boring of the crude oil, and proper
digitization in this field is necessary (Al-Mascati, and Al-Badi 2016). Digitalization, and IT
management in this field can significantly reduce the workload, and can help in increasing
the operational efficiency as well. Although the initial investment in this process is quite high
this would be valuable for the O & G companies in long run.
ICT is of great prominence in majority of aspects of O & G operations including both
upstream, and downstream operations (Lee, Chong, and Wang 2018). Oil companies in

11LITERATURE REVIEW
particular are required to invest of IT management not only to improve the proficiency, and
usefulness of their operations, but also for business management.
Strengthening the Competitive Position: It is of foremost necessity for any business
organization to maintain their competitive position to maximize their business profit.
Improvement of the major technological factors becomes a necessity for the O & G sector to
operate to its highest capability, which in turn can help in increasing the competitive
advantage. With the presence of several O & G companies in Oman, it is necessary for the
business organization to generate a highly competitive business environment, and for that
strategic use of IT is necessary (Chow, Ashayeri, and Stanley 2018). Strengthening the
competitive position of the oil, and gas industries requires planned implementation of
information Technology. The growth of any company is associated with effective
management of the customers’ need, and retaining the loyal customers. The information, and
communication technology is considered to be the significant tools for effective customer
management (Al-Mascati, and Al-Badi 2016). IT management therefore is a essential aspect
for the O & G industries to work on their key organizational processes, and in retaining the
customers of the organization. ICT has a significant impact on improving the operational
processes, which in turn increases the organizational productivity, and the competitive
position of the organization.
ICT is a major tool for making an optimum use of limited resources to increase the
organizational productivity (Al Shoaili 2015). In other words, ICT has a noteworthy impact
on the O & G operations of the organization. Proper IT management is further related to
various upstream operations, which also involves the upstream operations. The upstream
operations of the O & G companies in Oman is related to exploration, and production of
crude oil. One of the major concerns that the O & G industries of Oman is related to
extending the life of crude oil reserves, which can help in increasing the demand for oil. This