Accelerating Technology Adoption: A Benchmarking Study of Organisational Innovation Adoption Culture in Upstream Oil and Gas

Abstract

Working towards a net zero future requires change and adaptation from us all. Innovation offers many potential solutions on how to successfully make that change within the oil and gas industry. Consequently, maximising the value that technological innovation presents is vital for delivering a sustainable net zero. Yet, the oil and gas industry has developed a reputation for being conservative and reluctant to adopt new technology, with companies sometimes referred to as "fast followers". In recent years, the industry has begun to change with an incremental increase in innovation activities. Despite these efforts, and a need to accelerate innovation, there appears to be a resistance to adopt new technology. Evidence from O&G industry bodies indicate that psychological factors play a key role in technology adoption; not surprisingly, as workers, managers, investors, and regulators can all have a powerful influence on an organisation's receptivity to new technology. Recent research has provided insight into the psychological factors that influence technology uptake decisions in the oil and gas industry. Through a series of studies, the psychological technology adoption framework (P-TAF) was developed which outlined the 15 key psychological factors that influence technology adoption decisions. These are organised into 6 categories: personality, attitudes, motivations, cognitive factors, social factors, and organisational level factors. The work emphasised the influence that overarching organisational culture can have on how people respond to and introduce technology within their company. Whilst technology readiness levels are commonly applied to start-ups and their innovations, less is known about the readiness culture which facilitates innovation uptake. To bridge this gap, a preliminary measure of organisational innovation adoption culture was developed as based upon the previous psychological research, empirical innovation measures, and organisational culture models. This was piloted as an online survey with 36 people working in the technology space in O&G in June 2020. These results were used to later refine the culture measure to develop a 33-item scale consisting of eight categories. This new measure was deployed as part of an industry benchmarking study of innovation adoption culture within O&G consisting of 82 managers from 12 companies and in December 2020. Participating organisations were given the opportunity to receive a snapshot of their technology adoption culture. An overview of the measure and a summary of survey results will be given during the presentation as well as recommendations on how to support an innovation adoption culture. A considerable volume of new technology needs to be developed and adopted to be able to reach net zero and understanding the psychological and cultural barriers is imperative to delivering that.