A theoretical and empirical investigation of the barriers to the adoption of state-of-the-art information systems by Nigerian indigenous oil companies.
Ibrahim, Isa Ali
MetadataShow full item record
Currently, there are 49 indigenous oil companies (INOCs) and 28 marginal fields operators as well as 24 multi-national oil companies (MNOCs) operating in Nigeria. This study on Nigerian INOCs has found them to have inadequate state-of-the-art upstream information systems (IS) for their operations. Prior literature also indicates inadequate research on IS with respect to the INOCs. The sector has been essential to Nigeria due to its contribution of approximately 90% of the export revenues. In addition, at least 89% of the country’s oil is produced by MNOCs while indigenous ones produce a maximum of 11%. This is as a result of many factors, including the upstream IS used by the INOCs. The main objective of the study investigated the significant barriers that limit the adoption of the state-of-the-art upstream IS by the Nigerian INOCs. Furthermore, the relevant literature reveals that the MNOCs have developed and sustained their technological expertise in using the state-of-the-art IS for all of their activities. The developed research questions of the study have been answered by the suitable parts of the research. Data were collected through the interviewing of 6 chosen stakeholders as well as the administration of 200 questionnaires to the relevant stakeholders, and finally, 140 valid questionnaires were retrieved. As a result of the significant differences which existed between the chosen groups of the stakeholders, follow-up interviews were conducted in which 12 stakeholders participated. 6 of them were the same stakeholders interviewed during the first interviews conducted prior to questionnaire-survey. A mixed-method approach was selected and was also triangulated. The study has also used objective statistical tools based on SPSS to critically discover the major obstacles that limit the adoption of the state-of-the-art IS. The study also discovered that the opinions which emerged from the research participants indicated that, cost of some state-of-the-art ICT resources, technical skill, managerial attitude, government policies, government incentives, corruption and insecurity were significant barriers that limit the adoption of state-of-the-art IS by Nigerian INOCs. The study concludes by suggesting the need to invest in sufficient resources, hold meetings between various stakeholders, develop skills in terms of quality and quantity, provide sufficient technical training, reformulate government policy towards the adoption of state-of-the-art IS, provide government incentives to adopt state-of-the-art IS, establish anti-corruption units and improve the safety of the oil workers.