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Digitalization and corporate transformation: The case of European oil & gas firms

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  • Fernandez-Vidal, Jorge
  • Gonzalez, Reyes
  • Gasco, Jose
  • Llopis, Juan

Abstract

Digital technologies have had a tremendous impact on the world and have forced companies to adapt their business models, strategies and management practices. There is a scarcity of research about digital transformation in the energy sector, so this paper aims to analyze this phenomenon in the Oil & Gas sector through a comparative case analysis of eight market leading European Oil & Gas companies. To ensure an adequate methodological approach, the authors have applied Eisenhardt's framework to build theories from case study research. This article relies on multiple data collection methods. 26 interviews with 18 senior executives from the sample energy firms and two global consulting firms were completed in two separate phases. To complement these interviews, information and data were collected from a range of public sources, such as newspapers, video interviews, business magazines and analyst reports, as well as public information from the eight companies under analysis, such as annual and financial reports, company presentations, regulatory filings and announcements and company news. Our research highlights several transformational moves in the firms under study that bring substantial new capabilities and allow them to achieve market-leading positions in new and digitally native business areas -although modest in size. The sample firms mainly opt for combinations of small transformational strategies to achieve their large transformation goals. However, in many organizations, digital and business transformation initiatives suffer from poor governance and are typically just a collection of unconnected activities, piecemeal strategies and pilot projects. Developing a coherent transformation strategy, with the right structure and governance, remains a challenge for most organizations. This paper, leveraging the collective learnings from the eight companies studied, aims to help decision-makers with a conceptual guideline to select the most appropriate strategic tools when undergoing a transformation, based on four dimensions that are of high relevance across multiple strategic environments.

Suggested Citation

  • Fernandez-Vidal, Jorge & Gonzalez, Reyes & Gasco, Jose & Llopis, Juan, 2022. "Digitalization and corporate transformation: The case of European oil & gas firms," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    • Handle: RePEc:eee:tefoso:v:174:y:2022:i:c:s0040162521007277
    DOI: 10.1016/j.techfore.2021.121293
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    Cited by:

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    2. Fernandez-Vidal, Jorge & Antonio Perotti, Francesco & Gonzalez, Reyes & Gasco, Jose, 2022. "Managing digital transformation: The view from the top," Journal of Business Research, Elsevier, vol. 152(C), pages 29-41.
    3. Fu, Shuke & Ge, Yingchen & Hao, Yu & Peng, Jiachao & Tian, Jiali, 2024. "Energy supply chain efficiency in the digital era: Evidence from China's listed companies," Energy Economics, Elsevier, vol. 134(C).
    4. Zeng, Huixiang & Ran, Hangxin & Zhou, Qiong & Jin, Youliang & Cheng, Xu, 2022. "The financial effect of firm digitalization: Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    5. Du, Juntao & Shen, Zhiyang & Song, Malin & Zhang, Linda, 2023. "Nexus between digital transformation and energy technology innovation: An empirical test of A-share listed enterprises," Energy Economics, Elsevier, vol. 120(C).
    6. Annosi, Maria Carmela & Capo, Francesca & Appio, Francesco Paolo & Bedetti, Ivan, 2023. "Unveiling micro-foundations of digital transformation: Cognitive models, routines, and organizational structures in agri-food SMEs," Technological Forecasting and Social Change, Elsevier, vol. 197(C).
    7. Luo, Wenbing & Yu, Yuxin & Deng, Mingjun, 2024. "The impact of enterprise digital transformation on risk-taking: Evidence from China," Research in International Business and Finance, Elsevier, vol. 69(C).
    8. Zhang, Hongyan & Gao, Shuaizhi & Zhou, Peng, 2023. "Role of digitalization in energy storage technological innovation: Evidence from China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 171(C).

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