Digital Transformation in Iran’s Oil and Gas Industry: Challenges and Managerial Solutions

Ghorbani Asiabar, Mojtaba; Ghorbani Asiabar, Morteza; Ghorbani Asiabar, Alireza

doi:10.22050/pbr.2025.518977.1389

Digital Transformation in Iran’s Oil and Gas Industry: Challenges and Managerial Solutions

Document Type : Original Article

Authors

Mojtaba Ghorbani Asiabar ¹

Morteza Ghorbani Asiabar ²

Alireza Ghorbani Asiabar ³

¹ Postdoctoral Researcher in Management and Planning, Payam Noor University, Qazvin, Iran

² Payame Noor University, Qazvin, Iran

³ Payame Noor University, Qazvin,Iran

https://doi.org/10.22050/pbr.2025.518977.1389

Abstract

This study investigates the multifaceted challenges of implementing digital transformation within Iranian oil and gas companies, focusing on organizational barriers and managerial solutions. Despite the global momentum toward digitalization, Iran’s oil and gas sector faces unique obstacles, including resistance to change, skill gaps, legacy infrastructure, and insufficient alignment between technology providers and large enterprises. Utilizing a mixed-methods approach, we conducted a survey of 210 managers and IT professionals across upstream and downstream organizations, complemented by in-depth interviews with key stakeholders. Exploratory factor analysis (EFA) and structural equation modeling (SEM) were employed to identify and validate critical barriers and their interrelations. Findings reveal that organizational inertia, lack of digital competencies, and inadequate investment in digital infrastructure are the most significant impediments, while leadership commitment and targeted training programs emerge as effective managerial remedies. The study contributes actionable insights for policymakers and executives by outlining a roadmap for overcoming digital transformation hurdles and achieving sustainable competitive advantage. The results underscore the necessity of a holistic strategy integrating technological, human, and process dimensions to facilitate successful digital transformation in Iran’s oil and gas industry.

Highlights

This study provides a comprehensive analysis of digital transformation challenges in Iranian oil and gas companies using a mixed-methods approach.
Organizational inertia and skill gaps were identified as the most significant barriers to successful digital transformation.
Managerial commitment and targeted training programs are critical enablers for overcoming resistance and accelerating digital adoption.
Structural equation modeling (SEM) was employed to quantify the impact of organizational and managerial factors on digital transformation outcomes.
The research offers actionable recommendations for policymakers and industry leaders to foster a digital culture and develop clear transformation roadmaps.
Findings contribute new empirical evidence to the literature on digital transformation in developing economies and the energy sector.

Keywords

Digitalization

Organizational Inertia

Technology Adoption

Leadership Commitment

Workforce Training

Subjects

Oil and Gas Economics and Management

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