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The Influence Of National Culture Dimensions On Operational Discipline In Brazilian Oil & Gas Industry

Presenter: Joao Lafraia
President, Fábrica Carioca de Catalisadores S.A.
Description:
In this work, we present a quantitative study in a business unit of a Brazilian Oil and Gas Company to verify if organizational power distance, uncertainty avoidance, autonomy, and trust between leaders and followers, measured by an organizational culture questionnaire, affect the capacity to produce the desired operational discipline to achieve better ESG results. Previous studies emphasize the importance of intangible factors in internal coordination for operational discipline. However, the combination of low trust, high power distance, high uncertainty avoidance, and collectivism creates a culture of reactive planning, short-term focus, and excessive formal controls, which significantly increases transaction costs, does not promote efficiency and effectiveness, nor the ability to solve complex and systemic problems, according to the current epistemology on the subject under revision. Our results show that individualism and uncertainty (risk) avoidance predict operational discipline, whereas power distance and trust have a moderation effect in the first two variables.
About the Presenter:

João R. B. Lafraia is an expert in companies' transformations, mainly through assets management and operational excellence. He has more than 25 years of experience leading the implementation of advanced maintenance & reliability, safety and asset management system in major Oil Refineries and Exploration and Production offshore Business Units in Brazil. Since he decided to change from a technical to a managerial career, he has assumed several management and executive positions in the Oil & Gas and Petrochemical industry in Brazil.