Factors Affecting Internet of Things (IoT) Adoption in the Yemeni Oil and Gas Sector

Abstract

The Internet of Things (IoT) is defined as a potentially effective means of integrating multiple technologies to support the oil and gas (O&G) sector as a network of physical objects connected to the Internet. In Yemen, O&G organizations can embedded vehicles, equipment, buildings, fire siren and wells with electronics, software, sensors, and network connectivity that is now evolving. It is assumed that in one way or another, everything should be connected to one network to ease processes of business. To make IoT a reality, and not only remain academic, O&G sector must be able to engage in and pick up this technology in its day-to-day activities. Several studies have explored IoT’s potential for numerous organizations. However, IoT remains inadequately applied by organizations, including O&G sectors in developing countries. This article attempts to identify the factors that influence users to adopt IoT in the O&G sector in Yemen. Based on a study of prior tests, drivers were identified. Furthermore, a framework is proposed based on information system adoption theory which is the technology-organization-environment (TOE). Partial least squares structural equation modeling (PLS-SEM) has become a popular tool for analyzing such relationships is applied to a survey of 390 IoT users, with results indicating that the factors selected in this study significantly affected the IoT adoption in the Yemeni O&G sector. This study is enabling O&G organizations to understand the factors of IoT adoption, to improve their framework of business and investment in IoT and to inspire researchers to continue research into other IoT adoption or implementation factors.