Environmental Scanning Practices of Managers in Oil and Gas Companies in Nigeria

Abstract

This study was designed to investigate environmental scanning practices of the managers in Oil and Gas companies in Nigeria. Ex-post factor design and quantitative research approach were adopted to collect data from the respondents and the copies of the returned questionnaire were valid for analysis yielding 89.9 % response rate. The study revealed that customer, technological and regulatory sectors were the most perceived environmental uncertainty of the respondents. The amount of scanning done had significant correlation with perceived sector uncertainty of the respondents among others. The study recommended that the managers should consider enacting and searching as modes of scanning; perceived sector uncertainty, information sources accessibility and quality so as to enhance their frequency of use of information sources to scan their business environment.

Keywords

• Environmental Scanning Practices
• Oil and Gas
• Companies
• Managers
• Nigeria

References

1. Abdulrahman, M. A. (2019). Perceived environmental uncertainty, information acquisition and use by managers in petroleum industry in Libya and Iraqi. Journal of Management and Religion, 5(2), 120 - 131.
2. Adetutu, R.O. (2018). Internet as a tool for gathering information in oil and gas companies. Journal of Political Economy and Technology, 4(2), 50 – 58.
3. Andrew, S.S. (2021). Usefulness of information management for company performance. Management Science, 5(3), 50 - 61.
4. Aguilar, F. (1967). Scanning the business environment. Macmillan.
5. Auster, E. & Choo, C.W. (1994). How senior managers acquire and use information in environmental scanning. Information Processing & Management, 30(5), 607-618. https://doi.org/10.1016/0306-4573(94)90073-6.
6. Babalhavaeji, F. & Farhadpoor, M.R. (2013). Information source characteristics and environmental scanning by academic library managers. Information Research, 18(1), 1 - 12. http://informationr.net/ir/18-1/paper568.html
7. Benczur, D. (2005). Environmental scanning: How developed is information acquisition in western European companies? Information Research, 11(1), 1-18. http://www.informationnr.net/11-1/paper241.html
8. Bournois, F. & Romani, P.J. (2000). L’intelligence economique et strategique dons les entreprises francaises. Economica.

9. Choo, C. W. (2001). Environmental scanning as information seeking and organisational learning. Information Research, 7(1), 1-37. http://informationR.net/ir/7-1paper112.html Choo, C. W. (1994). Perception and use of information sources by chief executives in environmental scanning. Library and Information Science Research, 16(1), 23 – 40. https://doi.org/10.1016/0740-8188(94)90040-X
10. Correria, Z. & Wilson, T.D. (2001). Factors influencing environmental scanning in the organisational context. Information Research, 7(1), 22 – 28. http://InformationR.net/ir/7-1/paper121.html
11. Correria, Z. & Wilson, T.D. (1997). Scanning the business environment for information: a grounded theory approach. Information Research, 2(4), 1 – 23. http://informationr.net/ir/2-4/paper21.html. Culman, M.J. (1983). Environmental scanning: the effect of task complexity and source accessibility on information gathering behaviour. Decision Science, 14(2), 194 - 206.
12. Daft, R.L., Sormunen, J. & Parks, D. (1988). Chief executive scanning, environmental characteristics, and company performance. Strategic Management Journal, 9(2), 123 – 139. https://doi.org/10.1002/smj.4250090204.
13. Daft, R.L. & Weick, K.E. (1984). Toward a model of organisations as interpretation systems. The Academy of Management Review, 9(2), 284 - 295. https://doi.org/10.2307/258441.
14. Duncan, R.B. (1972). Characteristics of organisational environments and perceived environmental uncertainty. Administrative Science Quarterly, 17(3), 313 - 327. https://doi.org/10.2307/2392145.
15. Edward, A.A. (2020). Information acquisition and use for strategic management. Journal of Information and Technological Innovation, 5(2), 30 – 42.
16. Erdelez, S. & Ware, N. (2001). Finding competitive intelligence on Internet start-up companies: a study of secondary resource use and information–seeking processes. Information Research, 7(1). http://informationR.net/ir/7-1/paper115.html. Paper 115.
17. Fadehan, O.A., Atinmo, M.I., & Popoola, S.O. (2008). Information source quality and use as correlates of business performance of community banks in Osun State, Nigeria. Library Progress International, 28(2), 165 -188.
18. Farhadpoor, R.M., Bahmani, B. & Hamidi, M. (2014). Perception of the characteristics of external environment of organisations and its effect on managers’ environmental scanning in using information resources. Library Philosophy and Practice. https://digitalcommons.unl.edu/libphilprac/ 1204.
19. Ghoshal, S. & Kim, S.K. (1986). Building effective intelligence systems for competitive advantage. Sloan Management Review, 28(1), 49 – 58. https://doi.org/10.1016/0024-6301(87)90187-7
20. Halpern, D. & Nilan, M.S. (1988). A step toward shifting the research emphasis in information science from the system to the user: An empirical investigation of sources evaluation behaviour seeking and use. In C.L. Borgman & E.Y.H. Pai (Eds.), Proceedings of the 51st American Society for Information Science (ASIS) Annual Meeting. October 23 – 27, 1988 (pp.169-175). American Society for Information Science.
21. Hosseini, I. (2010). Environmental scanning study in acquisition and use of information by the managers of private publishers in Tehran city. [Unpublished master thesis]. Islamic Azad University, Tehran.
22. Hough, J.R. & White, M.A. (2004). Scanning actions and environmental dynamism: gathering information for strategic decision-making. Management Decision, 42(6), 781 - 793. https://doi.org/10.1108/00251740410542348.
23. Jain, S. (1984). Environmental scanning in U.S. corporations. Long Range Planning, 17(2), 117 – 128. https://doi.org/10.1016/0024-6301(84)90143-2.
24. Jorosi, B.N. (2008). Environmental scanning in Botswana’s SMEs: a study of the manufacturing industry. Libri, 58(4), 224 – 233. https://doi.org/10.1515/libr.2008.023
25. Jogaratnam, G. & Wong, K. K. F. (2009). Environmental uncertainty and scanning behaviour: an assessment of top – level hotel executives. International Journal of Hospital and Tourism Administration, 10(1), 44 – 67. https://doi.org/10.1080/15256480802557275.
26. Joshua, A. A. (2021). Environmental scanning and organisational performance in Nigerian electronic firms. Journal of Economics and Technology Management, 4(2), 20 – 28.
27. Kehinde, O. J. (2010). Environmental scanning: the strategic key for the Nigerian entrepreneur to exploit emerging market opportunities. Journal of Management Research, 2(1), 44 – 58.
28. Klein, H.E. & Linneman, R.E. (1984). Environmental assessment: an international study of corporate practice. Journal of Business Strategy, 5(1), 66 – 75. https://doi.org/10.1108/eb039048.
29. Lester, R. & Waters, J. (1989). Environmental scanning and business strategy: volume 75 of library and information research report. British Library.
30. Majid, S. & Kowtha, R. (2008, May). Utilising environmental knowledge for competitive advantage. CONF-IRM Proceedings, 62, May 18-20, 2008 (pp.1-11). AIS Electonic Library. http://aisle.aisnet.org/confirm2008
31. May, C.R., Stewart, W.H., & Sweo, R. (2000). Environmental scanning behaviour in a transitional economy: evidence from Russia. Academy of Management Journal, 43(3), 403-427. https://doi.org/10.5465/1556402.
32. Ogunmokun, G.O. (1999). Environmental scanning practices and export performance in international marketing: a study of Australian exporters. International Journal of Management, 16(1), 9-12.
33. Ojo, O. (2008). Appraisal of the impact of environmental scanning on corporate performance in selected Nigerian banks. Manager Journal, 7(1), 89-100.
34. O’Reilly, C.A. (1982). Variation in decision makers’ use of information sources: the impact of quality and accessibility of information. Academy of Management Journal, 25(4), 756 - 771. https://doi.org/10.10.2307/256097.
35. Pawar, B.S. & Sharda, R. (1997). Obtaining business intelligence on the Internet. Long Range Planning, 30(1), 110 - 121.
36. Popoola, S.O. & Ayankola, I. A. (2018). Self-efficacy, information accessibility and utilisation as determinants of creativity of managers in packaging companies in Nigeria. Journal of Information Engineering and Applications, 8(7), 38 – 50. www.iiste.org
37. Popoola, S.O. (2011). Relational analysis of creativity, information seeking behaviour and utilisation of managers in petroleum marketing companies in Nigeria. Communicate: Journal of Library and Information Science, 13(2), 1 – 20.
38. Popoola, S. O. (2006). Influence of information availability and utilisation on decision- making of managers in large-scale manufacturing industries in Nigeria. South African Journal of Libraries and Information Science, 72(1), 45 - 55. https://doi.org/10.7553/72-1-1375.
39. Popoola, S.O. (2003). Environmental scanning for strategic advantage of managers in oil companies in Nigeria. Nigerian Libraries, 37(1), 42 – 56.
40. Popoola, S.O. (2000). Scanning the business environment for competitive advantage: A study of corporate banking managers in Nigeria. Libri, 50(3), 210-216. https://doi.org/10.1515/LIBR.2000.210
41. Preble, J.F., Rau, P.A., & Reichel, A. (1988). The environmental scanning practices of U.S. multinationals in the late 1980s. Management International Review, 28(4), 4 - 14. https://doi.org/10.2307/40227901.
42. Preble, J.F. (1978). Corporate use of environmental scanning. University of Michigan Business Review, 30(5), 12 - 17.
43. Qiu, T. (2008). Scanning for competitive intelligence: a managerial perspective. European Journal of Marketing, 42(7/8), 814 - 825. https://doi.org/10.1108/03090560810877178.
44. Raymond, L., Pierre-Andre, J., & Ramangalaby, C. (2001). Technological scanning by small Canadian manufacturers. Journal of Small Business Management, 39(2), 123 - 138. https://doi.org/10.1111/1540-627X.00012.
45. Revilla, E., Prieto, I.M., & Prado, B.R. (2010). Knowledge strategy: its relationship to environmental dynamism and complexity in product development. Knowledge and Process Management, 17(1), 36 - 47. https://doi.org/10.1002/kpm.339
46. Robinson, C.V. (2015). An exploratory of external environmental scanning and the strategy process. [Unpublished doctoral dissertation]. Heritt-Watt University, Edinburgh. http://hdl.handle.net/10399/3030
47. Sawyer, O.O., Ebrahimi, B.P., & Thibodeaux, M.S. (2000). Executive environmental scanning, information source utilisation, and firm performance: the case of Nigeria. Journal of Applied Management Studies, 9(1), 95 – 115. https://doi.org/10.1080/713674356.
48. Stubbart, C. (1982). Are environmental scanning units effective? Long Range Planning, 15(3), 139 – 145. https://doi.org/10.1016/0024-6301(82)90035-8.
49. Taylor, R.S. (1986). Value-added processes in information systems. Abex.
50. Teo, T.S.H. & Choo, W.Y. (2001). Assessing the impact of using the Internet for competitive intelligence. Information and Management, 39(1), 67 - 83. https://doi.org/10.1016/S0378-7206(01)00080-5.
51. Thomas, P.S. (1980). Environmental scanning: the state of the art. Long Range Planning, 13(1), 20 – 28. https://doi.org/10.1016/0024-6301(80)90051-5.
52. Zhang, X., Majid, S., & Foo, S. (2010). Environmental scanning: an application of information literacy skills at the workplace. Journal of Information Science, 36(6), 710 - 732. https://doi.org/10.1177/0165551510385644.