Technological environment and sustainable performance of oil and gas firms: a structural equation modelling approach

Abstract

AbstractThis study draws from the dynamic capabilities theory to examine how sustainable performance measured along with financial, environmental, and social performance are impacted by technology infrastructure, technology knowledge, and technology applications. Copies of the questionnaire were administered to the Operations and Information Technology department staff of selected oil firms in the Niger Delta region of Nigeria. Out of the three hundred (300) copies of the questionnaire administered, two hundred and forty-three (243) were validly filled. Sixteen (16) of the responses were deleted due to the presence of an outlier in the dataset. The remaining two hundred and twenty-seven (227) responses were used for data analyses. The research model was estimated using structural equation modelling to establish relationships among the variables. The study found that technology infrastructure has a positive but insignificant impact on the sustainable performance of oil and gas firms. However, technology knowledge and application positively and significantly impact sustainable performance. The study recommends that oil and gas companies continually employ, reward, and train individuals to absorb and utilize acquired technologies to develop a standard for addressing the social and environmental problems in the Niger Delta region.