Effect of Cloud Computing on Organisational Performance in the Nigerian Oil and Gas Companies

Folashade Desola OWOSENI; Jonathan Ehimen EKPUDU; Emmanuel Dejo OLUWANIYI

Folashade Desola OWOSENI University of Lagos Business School, Akoka, Lagos State
Jonathan Ehimen EKPUDU University of Lagos Business School, Akoka, Lagos State
Emmanuel Dejo OLUWANIYI University of Lagos Business School, Akoka, Lagos State

Keywords: Cloud Computing, Operational Efficiency, Organisational Performance, Privacy Risk Exposure, Profitability

Abstract

Cloud computing is a key driver of digital transformation, yet its implications for organisational performance in resource-dependent economies remain underexplored. This study examines the effect of cloud computing on organisational performance in Nigerian oil and gas companies, a sector central to national revenue but challenged by high costs, regulation, and data management. Grounded in the Technology Acceptance Model (TAM), Diffusion of Innovations (DOI), and the Resource-Based View (RBV), cloud computing is measured through adoption (in months), scalability, and availability, while organisational performance is assessed via profitability, operational efficiency, and privacy risks exposure. A quantitative, cross-sectional survey was conducted using a structured Likert-scale questionnaire. Data were obtained from employees of selected International Oil Companies (IOCs) and National Oil Companies (NOCs) in Nigeria through purposive and convenience sampling. Statistical techniques including descriptive, correlation, and regression modelling, were used for analysis. Findings show that cloud adoption significantly improves profitability by lowering costs and enabling data-driven decisions. Scalability enhances operational efficiency through flexible resource allocation. However, increased availability exposes organisations to privacy risks, raising concerns about cybersecurity and compliance. This study contributes by providing empirical evidence of cloud computing’s dual role as both enabler and vulnerability in emerging economies. It extends TAM, DOI, and RBV, showing how adoption, diffusion, and strategic resources shape outcomes. Policy implications highlight the need for stronger data protection and risk-mitigation strategies to balance innovation with security in Nigeria’s oil and gas sector.