Information technology in a complex economy : the African oil and gas industry

Abstract

The energy sector is fast nearing a tipping point of no turning back. Transitioning from fossil fuel to renewable energy holds both threats and opportunities for businesses across the world. Africa is a continent rich in natural resources. The World Bank predicts that by 2020 only four or five African countries will not be involved in mineral exploitation. However, the continent is in economic, political and social crises with the majority of Africans living in poverty. As an enabler of business, business expects information technology (IT) to support, grow and maintain their existing portfolio of IT products and services while at the same time innovate and build new IT competencies to respond rapidly to the transition towards renewable energy. But, IT leadership is blamed for being rigid and unable to service the evolving needs of their organisations. As a result, traditional management theory is failing IT leadership in responding to the rapid rate of change required for serving as an enabler and transformational agent for business in leveraging technology to create a competitive advantage. As an enabler of business, the rate of implementing new products and services has a direct impact on organisational competitiveness, something that traditional management theory does not provide for. Theory tells us what technical skills the IT department requires; it does not tell us what people skills are required. In addition, business managers in Africa need to develop the ability to integrate traditional and conventional management styles to resolve the unique challenges they face. The implementation of an effective and efficient IT department remains problematic for business and IT management as traditional management theory does not necessarily support the implementation of IT within organisations in the African Oil and Gas industry. This research explores the disconnect between traditional management theory and the way that IT implementation works within the African Oil and Gas industry. The study followed an inductive research approach. The research paradigm fluctuated between exploratory humanism and interpretivism. The African Oil and Gas industry presents the case study. A multistage mixed-model research design (a subset of mixed method research) was followed, combining quantitative data with qualitative data in order to add depth to the findings. The multistage mixed-model research design allowed for the collection and corroboration of data and enhanced the credibility of the study. This design was used to expand the qualitative and quantitative data collected by challenging the results from both methods.