Reinventing the Sustainable Value Chain in Iraq’s Oil Industry: The Role of Digital Transformation and Innovation in Creating Competitive Advantage

Ahmed Ibrahim, Ahmed Naji; Rahimi Kolour, Hossein; Khodapanah, Bahman; Bashokouh Ajirlou, Mohammad

doi:10.22034/ijumes.2025.736703

Reinventing the Sustainable Value Chain in Iraq’s Oil Industry: The Role of Digital Transformation and Innovation in Creating Competitive Advantage

Document Type : Case Study

Authors

Ahmed Naji Ahmed Ibrahim ¹

Hossein Rahimi Kolour ²

Bahman Khodapanah ³

Mohammad Bashokouh Ajirlou ⁴

¹ Ph.D. Student, Department of Business Administration, Faculty of Social Sciences, University of Mohaghegh Ardabili, Ardabil, Iran

² Associate Professor, Department of Business Management, Faculty of Social Sciences,University of Mohaghegh Ardabili, Ardabil, Iran

³ Assistant Professor, Department of Business Management, Faculty of Social Sciences,University of Mohaghegh Ardabili, Ardabil, Iran

⁴ Professor, Department of Business Management, Faculty of Social sciences, University of Mohaghegh Ardabili, Ardabil, Iran

10.22034/ijumes.2025.736703

Abstract

This study aims to explain the mechanisms of “sustainable value chain reinvention” in Iraq’s oil industry and to examine the role of digital transformation and innovation in creating competitive advantage. Given the institutional, operational, and environmental complexity of this industry, a qualitative approach utilizing Grounded Theory was employed to uncover an indigenous model. Data were collected through semi-structured interviews with oil industry experts and analysis of organizational documents and reports, then analyzed using three-stage coding (open, axial, and selective). During open coding, a set of key concepts related to digital technologies (including IoT, artificial intelligence, cloud computing, and blockchain), operational efficiency improvement, data governance, supply chain optimization, and sustainability dimensions (flaring reduction, wastewater management, emissions reduction) were extracted. In axial coding, concepts were organized into main categories: technological infrastructure, digital human capital, business model innovation, institutional alignment, social responsibility, and environmental sustainability. Finally, in selective coding, the central phenomenon of “sustainable value chain reinvention based on digital intelligence” was identified and the paradigmatic research model presented. Findings indicate that sustainable competitive advantage derives not from technology alone, but from the synergy of digital capabilities, innovation culture, and commitment to sustainability principles simultaneously reinforcing triple outcomes: operational, environmental, and social.

Keywords

Sustainable Value Chain

Iraq Oil Industry

Digital Transformation

Innovation

Grounded Theory

Competitive Advantage

Data Governance

Environmental Sustainability

· Alisher, E. (2017). Innovative marketing strategy for tourism development. World Scientific News, 88(2), 58–68.

· Bedő, Z., Erdős, K., & Pittaway, L. (2020). University-centred entrepreneurial ecosystems in resource-constrained contexts. Journal of Small Business and Enterprise Development, 27(7), 1149–1166. https://doi.org/10.1108/JSBED-02-2020-0060

· Bell, R., & Bell, H. (2020). Applying educational theory to develop a framework to support the delivery of experiential entrepreneurship education. Journal of Small Business and Enterprise Development, 27(6), 987–1004. https://doi.org/10.1108/JSBED-01-2020-0012

· Bigné, E., & Decrop, A. (2019). Paradoxes of postmodern tourists and innovation in tourism marketing. In The Future of Tourism (pp. 131–154). Springer.

· Eniola, A. A. (2020). Entrepreneurial self-efficacy and orientation for SME development. Small Enterprise Research, 27(2), 125–145. https://doi.org/10.1080/13215906.2020.1752295

· Harrison, D., & Kjellberg, H. (2010). Segmenting a market in the making: Industrial market segmentation as construction. Industrial Marketing Management, 29(5), 784–792. https://doi.org/10.1016/j.indmarman.2010.06.003

· Jayawardena, C. C. (2019). What are the key innovative strategies needed for future tourism in the world? Worldwide Hospitality and Tourism Themes, 11(5), 578–594. https://doi.org/10.1108/WHATT-06-2019-0040

· Little, C., Bec, A., Moyle, B. D., & Patterson, D. (2020). Innovative methods for heritage tourism experiences: Creating windows into the past. Journal of Heritage Tourism, 15(1), 1–13. https://doi.org/10.1080/1743873X.2019.1620835

· Masurel, E. (2019). Entrepreneurship education. In The Entrepreneurial Dilemma in the Life Cycle of the Small Firm (pp. 75–84). Emerald Publishing.

· Mishra, M. (2019). Marketing strategies for tourism development in Varanasi: The cultural capital of India. Journal of Accounting, Finance & Marketing Technology, 2(3), 27–37.

· Ratten, V. (2020). Entrepreneurship as empowerment: Knowledge spillovers and entrepreneurial ecosystems. In V. Ratten (Ed.), Entrepreneurship as Empowerment: Knowledge Spillovers and Entrepreneurial Ecosystems (pp. 1–10). Emerald Publishing Limited. https://doi.org/10.1108/978-1-83982-550-720201002

· Yoruk, E., & Jones, P. (2023). Firm-environment alignment of entrepreneurial opportunity exploitation in technology-based ventures: A configurational approach. Journal of Small Business Management, 61(2), 612–658. https://doi.org/10.1080/00472778.2020.1800354