International Journal of Mechanical Engineering and Technology (IJMET)
Volume 10, Issue 04, April 2019, pp. 126–141, Article ID: IJMET_10_04_014
Available online at http://www.iaeme.com/ijmet/issues.asp?JType=IJMET&VType=10&IType=4
ISSN Print: 0976-6340 and ISSN Online: 0976-6359
© IAEME Publication
Scopus Indexed
FRAME WORK ANALYSIS (STAGE 2):
CREATING A FRAME WORK TO ENHANCE
THE ADOPTION OF INNOVATIVE DRILLING
TECHNOLOGIES IN UPSTREAM UAE
OIL AND GAS
Sylesh Nechully
Research Scholar, UPES, Dehradun
Dr. S.K. Pokhriyal
Professor and Head - Energy Management,
School of Business - UPES, Dehradun
Dr. Saju Eapen Thomas
Dept. Chair – Marketing, City University College Ajman, UAE
Dr. Santhosh Koyadan
Executive Coach and Leadership Development Professional, UAE
ABSTRACT
The Findings/Framework proposed in the Stage 1 of Frame Work Analysis in the
paper titled “Frame Work Analysis (Stage 1): Creating a Frame Work to Enhance the
Adoption of Innovative Drilling Technologies in Upstream UAE Oil and Gas” gets
further validated/tested in this paper. Content Analysis is performed in the second
stage of validation in the Frame Work analysis. The researcher used NVIVO 12 for
data analysis due to the “Effort and Time factors” involved in Manual Frame Work
Analysis. The points to be noted in the results of data analysis are (1) The Variables
“Environmental Benefit” and “User Satisfaction and Trust” re-appeared in the data
analysis. (2) Variables - “Affordability” and associated variables, “Total Efforts” and
associated variables, “Purchasing Patterns” and associated variables, “Compliance”
and associated variables, “Resistance to Change” and associated variables, “Brand
Loyalty”, “Central Innovation Office”, “Trade Up or Buy back” and “Innovator
Support” got eliminated in the due course of data analysis.
Key words: Drilling Technologies, Frame Work, Innovation, Qualitative Data
Analysis, Upstream Oil and Gas, Coding
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Cite this Article: Sylesh Nechully, Dr. S.K. Pokhriyal, Dr. Saju Eapen Thomas,
Dr. Santhosh Koyadan, Frame Work Analysis (Stage 2): Creating a Frame Work to
Enhance the Adoption of Innovative Drilling Technologies in Upstream UAE Oil and
Gas, International Journal of Mechanical Engineering and Technology 10(4), 2019,
pp. 126–141.
http://www.iaeme.com/IJMET/issues.asp?JType=IJMET&VType=10&IType=4
1. INTRODUCTION
The paper describes the Second Stage of Frame Work Analysis (Third Stage of Qualitative
Data Analysis). Content Analysis is done to Validate/Test the Frame Work proposed in Stage
1 – in the Paper Titled “Frame Work Analysis (Stage 1): Creating a Frame Work to Enhance
the Adoption of Innovative Drilling Technologies in Upstream UAE Oil and Gas”. New
Variables/Relationships might emerge or the existing variables/relationships get eliminated or
modified during Content Analysis (Nechully and Pokhriyal, 2019).
2. METHODOLOGY
The Research Method employed for drafting the Frame work is “Frame Work Analysis”.
Starting with a Conceptual Lens/Preliminary Frame Work – Frame Work Analysis has got
Four stages of Validations (If the researcher has a well-defined Conceptual Lens/Preliminary
Frame Work or else first stage is for creating a well-defined frame work followed by three
stages of validations). The First two stages of Data Analysis are done by Content Analysis
and Last two stages done by Grounded Theory. The justification for using Frame Work
Analysis and the Research Design is already described in the paper titled “Choosing
Grounded Theory and Frame Work Analysis as the Appropriate Qualitative Methods for
Research”. (Nechully and Pokhriyal, 2019)
3. USING NVIVO 12
The Interview transcripts are cleaned, formatted and imported for data analysis. The interview
answers from various transcripts are consolidated under each headings/questions for easy
analysis using “AUTO CODE” function. The “MIND MAP” function can be used to create
tentative nodes structure – If the conceptual lens/preliminary frame work is known. Once
these answers from various transcripts are consolidated under each questions/headings, the
coding is done. In NVIVO, the relevant portions of text coded are put into containers called
“NODES”. Either the Nodes will be Pre-labeled or are labeled as or when the codes are
generated. The Insights or Useful observations emerged during the process of coding are
noted down under “MEMOS”. In due course of data analysis – these Memos are connected
together to unravel or validate the patterns of relationships of codes generated (Wright, 2018).
4. QUALITATIVE DATA ANALYSIS
4.1. Variables Affecting Innovation Opportunity
“From smart phones & wearable to virtual meeting rooms to high performance computing
platforms, new technology offerings can provide a competitive edge, enhance productivity”
(Forbes, 2015) - Emphasizes the need to have a favorable attitude towards opportunities
which creates competitive advantages and enhances productivity. Without a favorable
attitude, the end users will not make effort to find opportunities for improvements.
“The output from Canada’s oil sand can be increased by threefold by 2035 which is
equivalent to 4.5 billion barrels per day has the capacity to extract more oil and made
effective. Not only that, but also there should be efficient avenues in place to bring the
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extracted products to the market. The American Petroleum Institute pointed out that oil sand
production can be limited in 2014 because of shortage or inadequacy of pipelines leading
from refineries to the market. To make the Canada’s oil sand to become more beneficial and
efficient, there is need to put the right upgraders and pipelines in place” (Geology, 2019) –
The output from Canada’s oil sand can be increased three fold – is an innovation opportunity
– How to increase the output by three fold – it is something which has been never done
before. For doing this – there should be proper infrastructure in place – Right upgraders and
Pipe lines. So an end user searches for an innovation opportunity in the hope that it will be
utilized for the benefit of organization. But lack of organizational readiness demotivates the
end users to search for it.
4.2. Variables Affecting Organizational Readiness
“McAdam and Keogh investigated the relationship between firms’ performance and its
familiarity with innovation and research. They found out that the firms’ inclination to
innovations was of vital importance in the competitive environments in order to obtain higher
competitive advantage” (Gunday, Ulsoy and Kilic, 2016) – In a competitive environment,
organizational innovativeness helps to achieve competitive advantage. A firm with high
innovativeness searches for ways to enhance its organizational readiness to adopt innovations.
In fact, to create the necessary competitive advantages, the organizations should have
sufficient resources – Infrastructure, Skill set and Budgets. So the researcher infers that
organizational innovativeness enhances the organizational readiness to adopt innovation.
An Organizational Culture defines how an organization functions. It describes the shared
assumptions about how an organization should operate. It guides the behavior of the
employees. A culture of innovation is very much required for an organization to implement an
innovation strategy – “A good digital strategy for an upstream company would start with the
business strategy, then consider digital goals and objectives, where digital investments will
make the biggest impact, how digital investments will differentiate the business, what new
digital capabilities need to be put in place, and what new mechanisms will be needed to
keep up progress” (Digital Oil and Gas, 2019) – A culture of innovation is required in
organizations to make the organization ready to adopt innovation by making the necessary
infrastructural and procedural changes, competency enhancements etc.. An “Innovative
organization” can change itself /adapt itself according to different scenarios. An innovation
culture encourages employees also to change and to search for better ways of doing things.
4.3. Variables Affecting Technology Finalization
“Just a year ago, WTI was over $100 a barrel, and since the economics worked so well, there
was no real push toward finding efficiencies. Economics are forcing the hand, and industry
needs to be inspired by the innovation that has always existed yet seems to have been lost or
forgotten” (Forbes, 2015) – When the Oil prices were above $ 100 per barrel – organizations
were in a position to afford inefficiencies. There was no need to have a favorable attitude
towards innovation. But when the scenario changed, organizations were forced to become
efficient by embracing new technologies as a matter of survival. A shift in attitude towards
innovation became the need of the hour.
“Oil and Gas companies are challenged with maintaining efficient processes, retaining
knowledge and growing talent. How are oil and gas executives stepping up to these
challenges?” (Miller, 2013) – In the economic down turn, the oil and gas companies are
forced to rewire their operations – to become more efficient. The Organizations must be
prepared in terms of skill set, infrastructure etc to adopt appropriate innovative technologies.
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4.4. Variables Affecting Contract Finalization
“Why would a company try to implement something new when there is no compelling
business reason to do so? That might be fair, but with oil prices at historic lows, it’s time to
re-embrace the spirit this resilient industry was founded upon” (Forbes, 2015) –
Organizational readiness is required to combat uncertainties in oil and gas. Organizational
readiness enhances the adoption of innovative technologies to increase the efficiency of plant
operations. If the top management gets convinced about the organizational readiness and
innovation benefits, Go ahead signal is given to procurement department.
“The need to quickly respond to threats will make ready-to-deploy automated systems
enticing and that means we’ll see adoption of SD-WAN at scale, across all major industries”
(Bae, 2018) – A favorable attitude to change is required by the organizations to respond to
threats in the environments. An organization with a favorable attitude, perceives threat as an
opportunity for improvement.
4.5. Variables Affecting Implementation
“Understandably, most organizations still need to justify the technology investment, but that
can be done. The mental shift from abandoning the old way and trying something new can be
difficult” (Forbes, 2015). The text explains the need to have a positive attitude towards
abandoning the old ways for embracing new methods or procedures. Even for making an
innovation investment – an organization should have a favorable attitude towards innovation.
A positive attitude towards innovation encourages organization to mobilize funds, organize
training programs and make necessary infrastructure arrangements.
“Technology has caught up with the Industry’s need – but the industry still lags behind in
leveraging these advancements” (EY, 2015) – There are innovative technologies available in
the oil and gas industry but the companies lags behind in adopting these innovative
technologies. The main reason for this is the lack of preparedness on the part of organization
to adopt innovation. The organizations need to cultivate a culture of innovation with in the
organizations.
4.6. Variables Affecting Utilization
“Ultimately, best-in-class oil and gas companies are realizing that the future of the industry
lies in automation” (Maier, 2017) - Oil and Gas companies have a favorable attitude towards
automation. When they have a favorable attitude towards automation, it will be easy to utilize
it.
Variable “Intention to use” plays a significant role in utilization of innovation. Higher the
intention, more chances that the innovation will be utilized in the field/organization –
“Modernizing internal processes with automation, along with better access to information
about operations and maintenance, will help the industry streamline production and
distribution and allow for a higher yield” (Maier, 2017). The Intention to use Innovative
technologies will help oil and gas companies to stream line the production and distribution
and allow for a higher yield.
“So what will happen when oil is at $75 or higher? Will your company be primed and
ready to capitalize on the upswing?” (Forbes, 2015) – The oil and gas is going through a
down turn now. Even though it was a bit difficult for oil and gas in the beginning, they are
slowly adapting to the down turn. Oil and Gas industry is totally unpredictable. The prices of
oil can go beyond $ 75 as well. If it can manage now, companies will be able to reap huge
profits when the price touches $ 75/barrel. The Oil and Gas companies should be always
ready to face these uncertainties. If prepared – Oil and Gas can capitalize on that scenario.
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4.7. Variables Affecting Future Usage
The intention to use a particular technology – where, how and by whom decides whether the
organization will become a leader or not - “To remain relevant and effective leaders in 2019,
CTOs will need to develop a solid knowledge base around AI, ML, and automation and how
the technologies can best be leveraged in long-term” (Bae, 2018). In fact, “Intention to use”
helps the organization to formulate a “Technology usage strategy” in an organization.
“For as much as the breaches will prompt costly mitigation efforts and raise deep security
concerns, they will also cause a shift in perspective among enterprises. That, in turn, will
spark further innovation and result in even more solutions to address the challenges of a
hyper-connected age” (Bae, 2018) – Current technologies are not capable of tackling the
security threats in a plant. So it calls for further improvements in the existing technologies. If
an innovation capable of giving better security feature comes in the market, the oil and gas
will definitely embrace it. This supports the view that Purchase decisions affect the future
technology usage decisions in an organization.
4.8. Variables Affecting Attitude
Usefulness of the technology enhances confidence about the ROI and creates a favorable
attitude towards innovation. Any innovation which gives quantifiable results enhances
favorable attitude towards it – “Digital Experience Management (DEM), without a doubt, can
provide customers with the quantifiable results they need to address key business savings,
growth opportunities and outcomes on digital investments” (Bae, 2018) – Quantifiable results
creates a favorable attitude towards digital investments.
“One of the biggest challenges customers face is the ability to measure the effectiveness
and ROI of their digital transformation initiatives, which are absorbing a significant amount
of their budgets” (Bae, 2018) – Affordability creates a favorable attitude towards innovation.
Budget availability affects the general attitude towards innovations.
Credibility of a technology enhances the favorable attitude towards it. “Scientists are
prone to the “not invented here” syndrome leading to skepticism of new technologies or
methodologies” (Forbes, 2015) – “Skepticism of new technologies and methods” refers to
scientific credibility. Scientists do not believe in the credibility of technologies outsourced for
development and this lack of credibility can delay the adoption or can lead to non-adoption.
4.9. Variables Affecting Organizational Innovativeness
“Global forces such as geopolitical pressures are troubling the industry. We therefore need the
knowledge, contacts and skills to effectively adapt to these troubles and geopolitical
insecurity in the industry” (Global Energy, 2013) – Acquiring knowledge is one of the
strategies to tackle the insecurity prevailing in the market today. For acquiring the knowledge
organization should have the ability to learn new things. So learning capacity is required to
enhance the innovativeness without which an organization cannot survive in this competitive
market.
“It's not uncommon for oil or natural gas drilling proposals to end up on the desk of nonindustry laymen” (Geology, 2019) – Emphasizes the need for competent manpower to make
right decisions at the right time. Competent man power facilitates adoption of innovations in
an organization.
“IT knowledge was found to have a strong correlation with IT innovation adoption. Lack
of IT knowledge creates uncertainty and it is only the awareness through knowledge that
informs confidence in new innovation which facilitate adoption” (Global Energy, 2013) –
Information enhances innovation orientation. If the organizations do not have the right
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information at the fingertips, they cannot evaluate innovation suitability. Information builds
the initial confidence on the innovation.
4.10. Variables Affecting Organizational Culture
“As for BP's culture, it looked to me like most engineers worked in cubicles, except the
cubicles were like one giant cubicle with an engineer in each corner. They let you chose a
standing desk and ergonomic set up which was part of their focus on "wellness". One
awesome perk was that they have an in-house gym, along with personal trainers you could set
up training schedules with throughout the week in the middle of your work day” (Quora,
2015) – Work place perceptions influence the culture of an organization. How you work in
the office, how you interact, the facilities available for recreation, rewards etc describes
organizational climate. Organizational climate affects the organizational culture.
Organizational culture defines how the organization functions. To understand this, it is
important to know what is happening in the work place.
Organizational culture is also affected by Organizational customs – “BP's idea of casual
Friday was slacks and a polo shirt. Each employee gets a laptop, a cell phone, and a company
credit card. New grads at BP do 3 years of training and classes for their EIT program before
you can get your first promotion” (Quora, 2015) – Wearing casual on Friday, Giving Laptop,
Cell Phone and Company Credit Card, Sending New Grads for 3 Years training program etc
are the customs of the organization. These customs affects the overall functioning of BP.
4.11. Variables Affecting Intention to Use
“For example, after Ultra HD 4K televisions were announced, many consumers were either
buying them or had a plan to buy one when prices dropped” (Forbes, 2015) – The customers
purchased or had the intention to purchase Ultra HD 4K televisions due to the hype
surrounding HD 4K. But when an organization is adopting a technology, it needs to check
whether it can be customized and made compatible with the available systems. The people
who purchased HD 4K were not able to use the full functionality due to non-availability of
HD 4K contend – “What? That’s right, 4K content is rare, so even if you have this high-end
piece of gadgetry in your home entertainment system, companies are still working on
delivering something you can actually watch in 4K” (Forbes, 2015).
Decision making styles are important in oil and gas as the decisions can have a profound
influence on the bottom line – “Some challenges in the upstream oil and gas industry can be
effectively resolved if we lay emphasis on the new interdependencies between senior
management information, operational effectiveness and decision making. We also need to
appraise and understand their impact on our overall profit margins” (Global Energy, 2013).
Relevant information regarding the operations of the company is very vital for decision
making. Certain information about the hard realties can be obtained only if we participate the
relevant personnel in the decision making process. So a bottom up decision making can be
very effective in oil and gas.
“24/7 technical support is available via trained and knowledgeable aftermarket staff, and
warranty / service plans and spare parts for all product lines are also available depending on
specific customer requirements” (Ccsdualsnap, 2018) – Aftersales support is very important
in oil and gas. Oil and Gas companies expect 24 x 7 support. End users will be reluctant to
use a technology from an innovator who has a history of giving poor aftersales support.
“And though my day job was to chase the future, history has been an abiding hobby. One
of the ways I have tried to understand what lies beyond the next hill in the landscape of the
communications revolution is to study the advent of similar periods in the past” (Ccsdualsnap,
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2018) – The results from the previous innovations from the same brand builds the trust. Once
a trust is built, then it becomes easy to elicit user satisfaction.
4.12. Variables Affecting Substitution/Re-Purchase/New Purchase Decisions
“Many geoscientists, engineers, land men, and business leaders continue to accept the most
basic of tools. They make do with out-of-date technology and do not seek the latest and
greatest the market has to offer” (Forbes, 2015) - As the text suggests – oil and gas still
continues with the age old technologies. The oil and gas has to reinvent themselves. The
professionals in oil and gas have to change their outlook towards innovation. They have to
start using the latest available in the market.
“Every year, we recognize that technologies will evolve and that the demands of business
will drive adoption rates. When we look ahead at 2019, we recognize that technologies like
Artificial Intelligence, software-defined networking and the actual connected devices will
converge” (Bae, 2018) - The advances in technologies revolutionize the way the industry
operates. These advances create altogether different alternatives – “The development of
alternative solutions for implementation” (Andronova and Osinovskaya, 2017) or upgraded
systems which forces oil and gas companies to make purchasing decisions.
4.13. Variables Affecting Hype Cycles
“The technology industry is well-versed in the concept of obsolescence, and there is the
expectation that something new and better will always be just around the corner” (Forbes,
2015) – There are always optimism regarding the innovative technologies in the oil and gas
industry. This optimism creates hypes around certain technologies. Technologies should be
thoroughly evaluated before adopting it in the plant - not to get influenced by the hype.
“Imagine creating all the “what if” scenarios the organization needs to be” (Forbes, 2015)
– The text conveys that the trend of going behind the technologies creating “what if
scenarios” in the oil and gas. Oil and Gas industry always goes behind the trends. These
trends create certain hypes.
4.14. Sources of Information
Sources of information are universities or national and international research institutes,
vertical linkages including suppliers, customers and competitors, participation in the interindustry supply chains, patent disclosures, professional conferences, meetings and journals,
fairs and exhibitions, innovative cooperation, research institutions or regulatory agencies
4.15. Variables Affecting Aftersales Support
“Today, after-sales support continues to be an important tool for both consumers and
manufacturers. A customer expects a cost-effective and reliable after-sales support service.
Manufacturers also rely on consumer satisfaction to maintain business and sales. Without a
good after-sales support service, a product can be difficult to sell” (Technopedia, 2018) –
Conveys the importance of Aftersales support in Oil and Gas. End users expect the innovator
to provide reliable, cost effective after sales support. Poor aftersales support for one product
affects the decisions regarding other products from the same innovator. After Sales Service
for innovative technologies includes “training on the use of the product, updates for software,
scheduled maintenance or provisions of materials or parts, repair and servicing, money-back
guarantees, or warranties for replacement in case of damage or defects” (Technopedia, 2018).
Technical support includes “Technical Support/Help desk, online knowledge bases like
forums and Automated Customer Service” (Technopedia, 2018).
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4.16. Variables Affecting User Satisfaction and Trust
“Past experiences can impact future decision making. Past decisions influence the decisions
people make in the future. It stands to reason that when something positive results from a
decision, people are more likely to decide in a similar way, given a similar situation”
(Padgeon, 2018) – People have an innate tendency to look into past to see what decisions
they have made when encountered with the same/similar problem(s). Those decisions which
have given them favorable results are repeated. This point of view is true in Oil and Gas.
Previous experiences with the brand affects the “Trust” placed on the brand. Trust placed on
the brand helps to create a favorable environment for building the satisfaction. If an
innovation from a brand has given satisfactory or favorable results, then for future
requirements also, the innovations from the same brand are preferred.
“I think that will change once the business platforms becoming defined, these projects
should be very manageable. A clear scope should deliver ROI in three to six months”
(Aliyeva, 2012) – An innovation should be able to deliver the expected results. Any mismatch
between the expected and actual causes – dissatisfaction and the innovation is no longer
trusted.
“The oil and gas industry's requirements are extraordinarily exacting and production
processes are sophisticated. Customers need high quality, short and reliable delivery times”
(Aliyeva, 2012) – The statement clearly indicates that reliable deliver times counts a lot in oil
and gas. There might be many operations scheduled ahead based on the delivery
commitments of the vendor and any deviation from the commitments create a bad impression
about the brand. This in turn gets reflected on the innovation as well.
4.17. Variables Affecting Absorptive Capacity
CEO Innovativeness helps an organization to go ahead with innovative technologies they
have not tried before. Support from some body as high as CEO – enhances the learning
abilities of an organization - CEO’s innovativeness and involvement contributes to the
success of any IT adoption process Innovative CEO’s are willing to take risks and would
prefer solutions that have not been tried before” (Oil&gas360, 2018). In fact it enhances the
innovativeness of the employees as well. Employee innovativeness plays an important role in
suggesting the right innovations for their applications. Employees should be encouraged to
scan for innovation opportunities in the organization - “qualified specialists and professionals
with unique competencies to find solutions for complex non-trivial production tasks and
participate in the process of creating new technologies with their experience, knowledge and
innovative thinking” (Andronova and Osinovskaya, 2017). As these two concepts are closely
related, these two concepts are merged to “CEO and Individual Innovativeness”
“Another obvious concern is the slow pace of technology adoption. The oil & gas industry
has historically relied upon rudimentary paper-based technology and really had no need to
think outside of the box because companies were too busy developing resources and making
money” (Forbes, 2015) – Emphasizes the need for somebody to think out of the box for Oil
and Gas companies. Employees like engineers and other admin staffs will be busy in their day
to day activities and if the organization has a strong R&D – they can bring in “Out of the box”
ideas. R&D also should be given targets in terms of product or process improvements – which
enhances the learning skills of an organization. R&D can also disseminate the relevant
information to the company personnel.
To start planning for the future, oil and gas leaders in all segments might consider some
fundamental questions: Do I have the right business models in place? How can my company
develop new capabilities and in what areas? How should asset portfolios evolve? What type
of technology plays should I invest in? (Biscardin, Morrison and Branson, 2017) –
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Organizational Openness – keeping an open approach to the market helps organizations to
self-evaluate – to bench mark against the competitors or market standards. Organizational
openness enhances the absorptive capacity of an organization by embracing learning
opportunities from within and the surroundings.
“The oil and natural gas industry is a part of an oligopolistic market structure with an
undeniable competitive fringe. It is very clear to society that the oil and natural gas industry's
past, present, and future production is somewhat controlled and relied upon by OPEC "cartel"
decisions” (123helpme, 2018) – In the Oil and Gas industry with Oligopolistic Market
structure there are no competitions. It is dominated by OPEC and there are no incentives for
the OPEC countries to improve their performance due to the huge profit margins they get and
with absolutely no competition whatsoever from other sources of energy. Now but the profit
margins are decreasing and competition is increasing from alternative sources. So to remain
competitive, Oil and Gas has to learn new things.
4.18. Variables Affecting Usefulness
“Still, in the face of uncertain long-term forecasts, it is time to explore more drastic strategies
to boost efficiency” (Choudhry, Mohammad and Tan, 2016) - Testifies the fact that oil and
gas is looking forward to embrace technologies that can reduce cost and enhance profitability.
“the workforce of the future will need technology to do their jobs effectively and bridge
the vast experience gap” (Forbes, 2015) – supports the view that anything which can enhance
the job performance of the employees will be adopted. The employees also should have a
feeling that the innovation will help them to improve their performance at the plant. This
creates a big influence when it comes to the utilization of the innovation.
While embracing the digitalization, one important aspect to be tackled is the “Security” of
the Innovation – Digitalization. “Realizing that promise means coming to terms with OT
cyber security because the enablers of digitalization – connectivity, remote access, and more –
are also enablers for increasingly frequent and sophisticated cyber-attacks” (Oilandgasiq,
2017). The digitalization should be “secured” from cyber-attacks, failing to do so
compromises the confidentially of the plant information. A plant cannot afford to let
somebody corrupt its data base.
“Production processes need to be flexible, easy and quick to switch between different
products but also operationally reliable, economic and environmentally acceptable” (Abb,
2013) – The whole world is becoming environment conscious now. Oil and Gas also has to
show its commitment to reduce the foot prints. Any innovation which is environment friendly
or which can make the processes in the oil and gas environment friendly is welcomed.
Environmental commitment enhances the reputation of oil and gas companies.
Innovation should enhance the overall safety of the processes and personnel. It is clearly
evident from the statement - “The tool teaches how an effective collaborative process
automation system becomes the catalyst for improvement, increasing the robustness of the
process and overall safety” (Abb, 2013). So the safety aspect of innovation enhances the
usefulness of innovation for an organization.
4.19. Variables Influencing Facilitating Conditions
“Still, in the face of uncertain long-term” (Choudhry, Mohammad and Tan, 2016) – The
impact of economic conditions on the Oil and Gas is very unpredictable. Nobody can predict
the Oil and Gas prices. There is no formulae or frame work to predict the Oil and Gas prices.
The oil and gas companies have to expect the unexpected.
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“It is time to explore more drastic strategies to boost efficiency” (Choudhry, Mohammad
and Tan, 2016) – The organizational priority in the economic down turn should be to enhance
the efficiency. Innovations are evaluated on the basis of its ability to enhance the efficiency
levels. Innovations are prioritized based on its ability to enhance profitability.
“Current commodity prices are forcing the hand of many E&P decision makers to find
ways to do more with less, identify opportunities faster and succeed at $50 oil” (Forbes, 2015)
– The text hints at the need for innovative technologies and the resources required to adopt
and operate innovative technologies – Infrastructure and Competent Employees. Competent
Employees are required to operate the innovation. Complimentary Technological
Infrastructure is required to implement the innovation in the plant.
“With the downturn of WTI, many of the super majors started tightening their belts,
looking for efficiencies and laying off thousands of employees” (Forbes, 2015) – The text
clearly indicates that Oil and Gas majors are tackling down turn by searching for ways to
enhance efficiencies. For this, a visionary leadership/management is required at the top to
steer the organization through the downturn. A visionary leadership/management will always
support new technologies – if they find it relevant to the organization.
4.20. Variables Influencing Scientific Credibility
Technologies will not be procured if its scientific credibility cannot be established by field
trails – Very evident from the statement “Information and results from the trial, in addition to
the ongoing material verification studies, will be used to advance the qualification of the
technology as a permanent plugging and abandonment barrier” (Theogtc, 2018)
“By the end of the 1990s, the most important factors that differentiated control-system
products started to evolve away from basic functionality (such as operating systems, screen
resolution and clock frequency) to oil and gas oriented applications and emerging
technologies such as fieldbus and IOR solutions” (Abb, 2013) – As the technologies evolves,
there are certain features which the end users expect from an innovator. If these features are
not present, end users question the scientific credibility of technologies. End users get these
expectations from other innovative technologies in the market – the best example is touch
screen from mobile industry. Now all end users expect to have a touch screen interface for
innovative technologies.
“Most of us would agree that reputation matters – it can explain why customers choose
your product or service in preference to somebody else’s and can make the difference
between success and failure” (Cimaglobal, 2007) – The end users never expect a useless
innovation from a reputed manufacturer. End users have a feeling that reputed manufacturers
always come up with something useful to them.
4.21. Variables Influencing Customization and Compatibility
“Focusing on the needs and challenges of our customers, we provide innovative electric
power, automation and telecommunication solutions to the offshore oil and gas industry”
(Abb, 2013) - emphasizes the need for innovative technologies to match the exact
requirements of the end users or organizations. If it cannot satisfy the requirements it will not
be adopted or if it is adopted – it will not be utilized. The local conditions should be taken in
to account while adopting innovation. If it is not compatible with the existing systems or if it
cannot be made compatible with minor changes – the organizations will not adopt it.
“advanced refining process technologies, solutions for blending components, reformulated
fuels, hydro processing and bottoms upgrading” (Abb, 2013) – The advanced refining
solutions should be adapted for blending components, reformulated fuels etc….
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4.22. Variables Influencing Customs
Customs are “localized practices” in an organization which has been followed for years.
Routines can strengthen or weaken these customs in an organization – “nature of management
practices in such organizations and their effects upon the reinforcement of localized practices
and routines that militate against the spread of organization-wide change initiatives.
Organizational routines constrain or enable the spread of new management practices within
the firm” (Bresnen, Swan and Goussevskaia, 2005). Organizational customs can become
stumbling blocks in the innovation adoption process. One way to counter it is to change the
routines which strengthen it. Organizational routines are procedures that are repeated for the
execution of particular tasks.
Norms decides the acceptance or rejection of procedures or practices mostly in the long
term. Norms also represent the value systems in an organization “The new operating norms of
lower oil prices, heightened safety, and environmental awareness create challenges for
inefficient oil and gas companies. They also drive the most efficient organizations to
constantly improve and repeatedly find new, consistent methods to preserve or increase their
profitability, compliance and reputation” (Wesco, 2018). The norms of an organization
change or has to change according to the changes in the business environment where it
operates. So the organizational customs can also be changed by changing the norms of the
organization.
4.23. Variables Influencing Organizational Climate
Organizational climate is the aggregation of the employees feeling about their work settings –
“How can we aggregate individuals’ descriptions of their work setting” (Iloencyclopedia,
2011). A positive feeling emerges if they have clearly defined job roles and authority to
execute their tasks “The work setting, Job Roles, Authority to execute job etc constitutes
Organizational climate” (Iloencyclopedia, 2011). An employee with a long tenure with the
organization can facilitate a smooth adoption of innovative technologies. Long tenure with an
organization enhances the technical knowledge. A stable tenure enhances the commitment
from the employees. Relationships in the work environment also enhance the positive
perception about the work environment – “relationships among its members”
(Iloencyclopedia, 2011).
Job roles and Tenures are merged to a single variable – “Job roles and Tenure” as they are
closely related concepts.
4.24. Variables Influencing Decision Styles
“User involvement maintains product user’s welfare and motivates staff in their work. It
promotes and facilitates day to day purchasing decisions enhancing the chances of purchasing
the right products and services” (Onchiri and Kwasira, 2016) - End user involvement
enhances the chances of procuring the right products and services as they know firsthand
the field conditions. Involving end users can also cement better relationship between
organization and the vendors. End user involvement helps to “Quantify the Value of the
product” for the company – which helps to evaluate the offers.
“Oil and gas operations tend to be highly decentralized. Oil fields are in remote locations
across the globe with limited communications and diverse environments. This geographical
variance results in isolation of talent, inconsistent practices and knowledge barriers” (Miller,
2013) – The decentralized nature of organization sometimes delays the decision making
especially when multiple departments are involved. Each unit functions as a separate entity
and this isolation affects the relationship between employees belonging to different
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Sylesh Nechully, Dr. S.K. Pokhriyal, Dr. Saju Eapen Thomas, Dr. Santhosh Koyadan
departments. Departments/Individuals are isolated. It affects knowledge transfer as well due
to limited interactions. The quality of systems and procedures will also get affected.
“The informal channel of communication is often discouraged or looked down upon in an
organization, and is not officially sanctioned. It is popularly referred to as grapevine. This is
because it runs in all directions irrespective of the formal structure. As people go about their
work, they have casual conversation with their friends in the office. These conversations deal
with both personal and business matters. This results in the generation of a rumor mill, which
is a grapevine” (Your article library, 2018) - Informal channels of communications spread
rumors in organizations. There are no specified routes for informal communications and it
propagates in all directions. Informal channels are not meant for official communications. But
informal channels can spread innovative ideas. Informal communications leads to a very
relaxed work environment and better relationships in the organization. So both channels are to
be encouraged. For decision making in an oil and gas organization – the communication
channels have to be formal only.
In Oil and Gas companies there should be a mix of experienced and young employees.
Young employees may bring in new ideas but the feasibility of the ideas can be judged only
by an experienced employee especially in oil and gas where the criticality of operations are
very high. Moreover, the experienced employees can transfer the knowledge gained through
their exposure and experience to youngsters – “I had a recent experience where we had been
using a very specific set of parameters to carry out a particular procedure. This procedure had
been done the same way for the last 15 years by hundreds of experienced personnel using
these set parameters. However, a new young employee read the manual and pointed out that
we had been using the wrong figures for 15 years. Because the older more experienced
operators had said use these figures and this is how it is done everyone had assumed they
were right” (Imechanica, 2012).
5. OPEN CODING
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Figure 1 Open Coding
6. AXIAL AND SELECTIVE CODING
Figure 2 Axial and Selective Coding
7. CONCLUSIONS
The Researcher has completed the Second Stage of Frame Work Analysis. The Second Stage
of Frame Work Analysis resulted in the drafting of afore-mentioned frame work (Figure: 2).
The points to be noted are (1) The Variables “Environmental Benefit” and “User Satisfaction
and Trust” in the data analysis. (2) Variables - “Affordability” and associated variables,
“Total Efforts” and associated variables, “Purchasing Patterns” and associated variables,
“Compliance” and associated variables, “Resistance to Change” and associated variables,
“Brand Loyalty”, “Central Innovation Office”, “Trade Up or Buy back” and “Innovator
Support” got eliminated in the due course of data analysis.
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