Strategic Agility and Competitive Advantage of Oil and Gas Marketing Companies: The Moderating Effect of Information Technology Capability and Strategic Foresight
Keywords:
Competitive Advantage Information Technology Capability, Strategic Foresight and Strategic AgilityAbstract
Considering the vital role of strategic agility, information technology capability and strategic foresight in today’s global market, organizations in any economy cannot gain industry competitive advantage without agile workforce, information technology capability and strategic foresight. Most oil and gas companies in Nigeria faced competitive disadvantage due to poor strategic agility, information technology incapability and lack of strategic foresight. This study examined the combined moderating effect of information technology capability and strategic foresight on the relationship between strategic agility and competitive advantage in the oil and gas marketing companies in Lagos State, Nigeria. The study employed survey research design. The study population was 515 managers of major oil and gas marketing companies. Total enumeration was used and a structured questionnaire was adapted and validated. The instrument was reliable and valid: Cronbach’s alpha coefficients ranged from 0.734 to 0.814, and KMO values were greater than 0.5. 515 copies of questionnaire were distributed and 480 returned useable, giving a response rate of 93.2%. Hierarchical regression method was used for data analysis. Findings revealed that both information technology capability and strategic foresight have significant combined moderating effect on the relationship between strategic agility and competitive advantage in the oil and gas marketing companies (F-change = 34.969, p<0.05). The study concluded that information technology capability and strategic foresight moderately affects the relationship between strategic agility and competitive advantage in the oil and gas marketing companies. Therefore, it is recommended that oil and gas marketing companies in Nigeria should utilize their information technology capabilities to derive value from their business operations, sharpen their capability for analysing the drivers, motivations and causalities associated with future opportunities and the alternative strategic decisions necessary to optimally exploit these opportunities, and deepen their engagement of strategic agility initiatives. Limitations of the study and other areas for future research were highlighted.
References
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Alhadid, A. Y. (2016). The effect of organisation agility on organisation performance. International Review of Management and Business Research, 5(1), 273-278
Al-Romeedy, B. S. (2019). Strategic agility as a competitive advantage in airlines-Case study: Egypt Air. Journal of the Faculty of Tourism and Hotels-University of Sadat City, 3(1), 1-15.
Alvarez, S. A. & Barney, J. B. (2007). Discovery and creation: Alternative theories of entrepreneurial action. Strategic Entrepreneurship Journal, 1(1-2), 11-26.
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Arbussa, A., Bikfalvi, A., & Marquès, P. (2017). Strategic agility-driven business model renewal: The case of an SME. Management Decision, 55(2), 271-293.
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Arokodare, M. A., Asikhia, O. U., & Makinde, G. O. (2020). Information technology capability and performance of selected oil and gas marketing companies in Lagos State, Nigeria: The moderating role of organizational culture. International Journal of Business and Management, 15(3), 37-49.
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Baskarada, S., Shrimpton, D., Ng, S., Cox, D., & Saritas, O. (2016). Learning through foresight. Foresight, 18(4), 9-27.
Bereznoy, A. (2017). Corporate foresight in multinational business strategies. Foresight and Science, Technology & Innovation Governance, 11(1), 9-22.
Chege, S. M., Wang, D., & Suntu, S. L. (2019). Impact of information technology innovation on firm performance in Kenya. Information Technology for Development, 1-30.
Chen, W., & Kamal, F. (2016). The impact of information and communication technology adoption on multinational firm boundary decisions. Journal of International Business Studies, 47, 563-576
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Cumberland, F. (2006). Theory development within international market entry mode: An assessment. The Marketing Review, 6(4), 349-373.
Davidson, P., & Honing, B. (2003). The role of social and human capital among nascent entrepreneurs. Journal of Business Venturing, 18, 301-331.
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Ganguly, A., Nilchiani, R., & Farr, J. V. (2009). Evaluating agility in corporate enterprises. International Journal of Production Economics, 118(2), 410-423.
Gonzalez, E. M. L., & Dopico, D. C. (2017). The importance of intangible assets in the management of the firm-An empirical application for Banco Santander. European Research Studies Journal, XX(2A), 177-196.
Grant, R. M. (2001). Knowledge and organisation. In Nonaka, I. & Teece, D.J. (eds.), Managing Industrial Knowledge: Creation, Transfer and Utilization (pp. 145-169). London: Sage.
Hayes, A. F. (2017). Introduction to mediation, moderation, and conditional process analysis: A regression-based approach. New York: Guilford Publications.
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Kaiser, R. J. (2017). The geography of nationalism in Russia and the USSR (Vol. 4862). Princeton University Press.
Kamasak, R. (2017). The contribution of tangible and intangible resources and capabilities to a firm’s profitability and market performance. European Journal of Business and Economics, 26(2), 252-275.
Kettunen, P., & Laanti, M. (2008). Combining agile software projects and large-scale organizational agility. Software Process Improvement and Practice, 13(2), 183–193.
Knott, P. (2009). Integrating resource-based theory in a practice-relevant form. Journal of Strategy and Management, 2(2), 163-174.
Kumar, S., & Gulati, R. (2010). Dynamics of cost efficiency in Indian public sector banks: A post-deregulation experience. In Twelfth Annual Conference on Money and Finance in the Indian Economy, March, Mumbai.
Kuosa, T. (2016). The evolution of strategic foresight: Navigating public policy making. Routledge.
Kuncoro, W., & Suriani, W. O. (2018). Achieving sustainable competitive advantage through product innovation and market driving. Asia Pacific Management Review, 23(3), 186-192.
Liang, L., Kuusisto, A., & Kuusisto, J. (2017). Building strategic agility through user-driven innovation: The case of the Finnish public service sector. Theoretical Issues in Ergonomics Science, 19(1), 74–100.
Macharia, N. W, Mike A. I, Ondabu I., & Kepha, T, O. (2015). Effects of information technology on performance of logistics firms in Nairobi. Country International Journal of Scientific and Research Publications, 5(4), 23-46.
Madhani, P. M. (2012). Intangible assets: Value drivers for competitive advantage. In G. N. Gregoriou, & N. Finch, Best Practices in Management Accounting (pp.147-164). USA: Palmgrave Macmillan.
Mavengere, N. B. (2013). Information technology role in supply chain’s strategic agility. International Journal of Agile Systems and Management, 6(1), 7-24.
Michael, S., Storey, D., & Thomas, H. (2002). Discovery and coordination on strategic management and entrepreneurship. In M. A. Hitt, R. D. Ireland, S. M. Camp, & D. L. Sexton, Strategic Entrepreneurship: Creating a New Mindset (pp. 45-65). Oxford, UK: Blackwell Publishers.
Napitupulu, I. H. (2018). Organisation culture in management accounting information system: Survey on State-owned enterprises (SOEs) in Indonesia. Global Business Review, 19(3), 1-16.
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Nejatian, M., Zarei, M. H., Nejati, M., & Zanjirchi, S. M. (2018). A hybrid approach to achieve organisational agility: An empirical study of a food company. Benchmarking: An International Journal, 25(1), 201-234.
Nkuda, M. O. (2017). Strategic agility and competitive advantage: Exploration of the ontological, epistemological and theoretical underpinnings. British Journal of Economics, Management & Trade, 16(1), 1-13.
Ogungbangbe, T. O. (2017). Marketing strategies and business performance of domestic airlines in Nigeria (Doctoral dissertation, Babcock, University).
Oyerinde, A. J., Olatunji, O. C., & Adewale, O. A. (2018). Corporate social responsibility and performance of oil and gas industry in Nigeria. EKSU Journal of the Management Scientists, 2(1), 97-106.
Rohrbeck, R., & Kum, M. E. (2018). Corporate foresight and its impact on firm performance: A longitudinal analysis. Technological Forecasting and Social Change, 129, 105-116.
Rohrbeck, R., & Schwarz, J. O. (2013). The value contribution of strategic foresight: Insights from an empirical study on large European companies. Technological Forecasting and Social Change, 80(8), 1593-1606.
Rohrbeck, R., Thom, N., & Arnold, H. (2015). IT tools for foresight: The integrated insight and response system of Deutsche Telekom Innovation Laboratories. Technological Forecasting and Social Change, 97, 115-126.
Rubin, P. H. (1973). The expansion of firms. Journal of Political Economy, 81, 936-949.
Sherehiy, B., & Karwowski, W. (2014). The relationship between work organization and workforce agility in small manufacturing enterprises. International Journal of Industrial Ergonomics, 44(3), 466–473
Turulja, L., & Bajgoric. N. (2016). Innovation and information technology capability as antecedents of firms’ success. Interdisciplinary Description of Complex Systems, 14(2), 148-156.
Vecchiato, R. (2015). Creating value through foresight: First mover advantages and strategic agility. Technological Forecasting and Social Change, 101, 25-36.
Weber, Y., & Tarba, S. Y. (2014). Strategic agility: A state of the art introduction to the special section on strategic agility. California Management Review, 56(3), 5-12.
Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal, 5(2), 171-180.
Zhou, N., Zhang, S., Chen, J., & Han, X. (2017). The role of information technology (IT) in firms’ resource orchestration process: A case analysis of China’s Huangshan 168. International Journal of Information Management, 37(6), 713-715.
Alavi, S., & Abd. Wahab, D. (2013). A review on workforce agility. Research Journal of Applied Sciences, Engineering and Technology, 5(16), 4195-4199.
AlBar, A. M., & Hoque, R. (2017). Factors affecting the adoption of information and communication technology in small and medium enterprises: A perspective from rural Saudi Arabia. Information Technology for Development, 14(6), 1-24.
Alis, S., Jabeen, U. A., & Nikhitha, M. (2016). Impact of ICTs on agricultural productivity. European Journal of Business Economics and Accountancy, 4(5), 82-92.
Alhadid, A. Y. (2016). The effect of organisation agility on organisation performance. International Review of Management and Business Research, 5(1), 273-278
Al-Romeedy, B. S. (2019). Strategic agility as a competitive advantage in airlines-Case study: Egypt Air. Journal of the Faculty of Tourism and Hotels-University of Sadat City, 3(1), 1-15.
Alvarez, S. A. & Barney, J. B. (2007). Discovery and creation: Alternative theories of entrepreneurial action. Strategic Entrepreneurship Journal, 1(1-2), 11-26.
Appelbaum, S. H., Calla, R., Desautels, D., & Hasan, L. (2017). The challenges of organisational agility (Part 1). Industrial and Commercial Training, 49(1), 6-14.
Arbussa, A., Bikfalvi, A., & Marquès, P. (2017). Strategic agility-driven business model renewal: The case of an SME. Management Decision, 55(2), 271-293.
Arokodare, M.A. (2020). Strategic agility and firm performance of selected oil and gas marketing companies in Lagos State, Nigeria. (Unpublished Doctoral Thesis). Babcock University, Nigeria.
Arokodare, M. A., & Asikhia, O. U. (2020). Strategic agility: Achieving superior organizational performance through strategic foresight. Global Journal of Management and Business Research, 20(3), 7-16.
Arokodare, M. A., Asikhia, O. U., & Makinde, G. O. (2020). Information technology capability and performance of selected oil and gas marketing companies in Lagos State, Nigeria: The moderating role of organizational culture. International Journal of Business and Management, 15(3), 37-49.
Barney, J. B. (1986). Organisational culture: Can it be a source of sustained competitive advantage? Academy of Management Review, 11(3), 656-665.
Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17, 99-120.
Barney, J. B. (2007). The resource-based view of strategy: Origins, implications, and prospects. Editor of Special Theory Forum in Journal of Management, 17, 97-211.
Barney, J. B., & Arikan, A. M. (2001). The resource-based view: Origins and implications. In M. A. Hitt, R. F. Freeman, & J. S. Harrison (Eds.), Handbook of Strategic Management (124-188). Oxford: Blackwell Publisher.
Baskarada, S., Shrimpton, D., Ng, S., Cox, D., & Saritas, O. (2016). Learning through foresight. Foresight, 18(4), 9-27.
Bereznoy, A. (2017). Corporate foresight in multinational business strategies. Foresight and Science, Technology & Innovation Governance, 11(1), 9-22.
Chege, S. M., Wang, D., & Suntu, S. L. (2019). Impact of information technology innovation on firm performance in Kenya. Information Technology for Development, 1-30.
Chen, W., & Kamal, F. (2016). The impact of information and communication technology adoption on multinational firm boundary decisions. Journal of International Business Studies, 47, 563-576
Christensen, H. (2010). Defining customer value as the driver of competitive advantage. Strategy & Leadership, 38(5), 20-25.
Cumberland, F. (2006). Theory development within international market entry mode: An assessment. The Marketing Review, 6(4), 349-373.
Davidson, P., & Honing, B. (2003). The role of social and human capital among nascent entrepreneurs. Journal of Business Venturing, 18, 301-331.
Doz, Y., & Kosonen, M. (2008). The dynamics of strategic agility: Nokia's rollercoaster experience. California Management Review, 50(3), 95-118.
Ganguly, A., Nilchiani, R., & Farr, J. V. (2009). Evaluating agility in corporate enterprises. International Journal of Production Economics, 118(2), 410-423.
Gonzalez, E. M. L., & Dopico, D. C. (2017). The importance of intangible assets in the management of the firm-An empirical application for Banco Santander. European Research Studies Journal, XX(2A), 177-196.
Grant, R. M. (2001). Knowledge and organisation. In Nonaka, I. & Teece, D.J. (eds.), Managing Industrial Knowledge: Creation, Transfer and Utilization (pp. 145-169). London: Sage.
Hayes, A. F. (2017). Introduction to mediation, moderation, and conditional process analysis: A regression-based approach. New York: Guilford Publications.
Ismail, A. I., Rose, R. C., Uli, J., & Abdullah, H. (2012). The relationship between organisational resources, capabilities, systems and competitive advantage. Asian Academy of Management Journal, 17(1), 151-173.
Kaiser, R. J. (2017). The geography of nationalism in Russia and the USSR (Vol. 4862). Princeton University Press.
Kamasak, R. (2017). The contribution of tangible and intangible resources and capabilities to a firm’s profitability and market performance. European Journal of Business and Economics, 26(2), 252-275.
Kettunen, P., & Laanti, M. (2008). Combining agile software projects and large-scale organizational agility. Software Process Improvement and Practice, 13(2), 183–193.
Knott, P. (2009). Integrating resource-based theory in a practice-relevant form. Journal of Strategy and Management, 2(2), 163-174.
Kumar, S., & Gulati, R. (2010). Dynamics of cost efficiency in Indian public sector banks: A post-deregulation experience. In Twelfth Annual Conference on Money and Finance in the Indian Economy, March, Mumbai.
Kuosa, T. (2016). The evolution of strategic foresight: Navigating public policy making. Routledge.
Kuncoro, W., & Suriani, W. O. (2018). Achieving sustainable competitive advantage through product innovation and market driving. Asia Pacific Management Review, 23(3), 186-192.
Liang, L., Kuusisto, A., & Kuusisto, J. (2017). Building strategic agility through user-driven innovation: The case of the Finnish public service sector. Theoretical Issues in Ergonomics Science, 19(1), 74–100.
Macharia, N. W, Mike A. I, Ondabu I., & Kepha, T, O. (2015). Effects of information technology on performance of logistics firms in Nairobi. Country International Journal of Scientific and Research Publications, 5(4), 23-46.
Madhani, P. M. (2012). Intangible assets: Value drivers for competitive advantage. In G. N. Gregoriou, & N. Finch, Best Practices in Management Accounting (pp.147-164). USA: Palmgrave Macmillan.
Mavengere, N. B. (2013). Information technology role in supply chain’s strategic agility. International Journal of Agile Systems and Management, 6(1), 7-24.
Michael, S., Storey, D., & Thomas, H. (2002). Discovery and coordination on strategic management and entrepreneurship. In M. A. Hitt, R. D. Ireland, S. M. Camp, & D. L. Sexton, Strategic Entrepreneurship: Creating a New Mindset (pp. 45-65). Oxford, UK: Blackwell Publishers.
Napitupulu, I. H. (2018). Organisation culture in management accounting information system: Survey on State-owned enterprises (SOEs) in Indonesia. Global Business Review, 19(3), 1-16.
National Bureau of Statistics (2020). Statistical Bulletin. https://www.nigerianstat.gov.ng.
Nejatian, M., Zarei, M. H., Nejati, M., & Zanjirchi, S. M. (2018). A hybrid approach to achieve organisational agility: An empirical study of a food company. Benchmarking: An International Journal, 25(1), 201-234.
Nkuda, M. O. (2017). Strategic agility and competitive advantage: Exploration of the ontological, epistemological and theoretical underpinnings. British Journal of Economics, Management & Trade, 16(1), 1-13.
Ogungbangbe, T. O. (2017). Marketing strategies and business performance of domestic airlines in Nigeria (Doctoral dissertation, Babcock, University).
Oyerinde, A. J., Olatunji, O. C., & Adewale, O. A. (2018). Corporate social responsibility and performance of oil and gas industry in Nigeria. EKSU Journal of the Management Scientists, 2(1), 97-106.
Rohrbeck, R., & Kum, M. E. (2018). Corporate foresight and its impact on firm performance: A longitudinal analysis. Technological Forecasting and Social Change, 129, 105-116.
Rohrbeck, R., & Schwarz, J. O. (2013). The value contribution of strategic foresight: Insights from an empirical study on large European companies. Technological Forecasting and Social Change, 80(8), 1593-1606.
Rohrbeck, R., Thom, N., & Arnold, H. (2015). IT tools for foresight: The integrated insight and response system of Deutsche Telekom Innovation Laboratories. Technological Forecasting and Social Change, 97, 115-126.
Rubin, P. H. (1973). The expansion of firms. Journal of Political Economy, 81, 936-949.
Sherehiy, B., & Karwowski, W. (2014). The relationship between work organization and workforce agility in small manufacturing enterprises. International Journal of Industrial Ergonomics, 44(3), 466–473
Turulja, L., & Bajgoric. N. (2016). Innovation and information technology capability as antecedents of firms’ success. Interdisciplinary Description of Complex Systems, 14(2), 148-156.
Vecchiato, R. (2015). Creating value through foresight: First mover advantages and strategic agility. Technological Forecasting and Social Change, 101, 25-36.
Weber, Y., & Tarba, S. Y. (2014). Strategic agility: A state of the art introduction to the special section on strategic agility. California Management Review, 56(3), 5-12.
Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal, 5(2), 171-180.
Zhou, N., Zhang, S., Chen, J., & Han, X. (2017). The role of information technology (IT) in firms’ resource orchestration process: A case analysis of China’s Huangshan 168. International Journal of Information Management, 37(6), 713-715.
Published
2020-09-23
How to Cite
Fakunmoju, S., Arokodare, M., & Makinde, G. (2020). Strategic Agility and Competitive Advantage of Oil and Gas Marketing Companies: The Moderating Effect of Information Technology Capability and Strategic Foresight: Array. The Journal of Accounting and Management, 10(3). Retrieved from https://dj.univ-danubius.ro/index.php/JAM/article/view/430
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