Sensemaking in Dynamic Business Environments: Managerial Practices in the Oil and Gas Sector in Bahrain

Abstract

It has become the norm for organisations in many industrial sectors to constantly operate in dynamic, uncertain and challenging business environments. Technology, regulations, global economy, changing political actions and international conditions are all changing rapidly, creating dynamic business conditions for organisations to understand, react to and thus survive. The Oil and Gas (O&G) sector which is the backbone of the economic growth for many countries in the Middle East region is not an exception to the real world of business filled with uncertainties. The construction of meaning or sensemaking is a prerequisite management skill for complex problem solving and decision-making for survival in today’s increasingly dynamic business environments. Current literature on sensemaking tends to focus on senior management’s role in the process, overlooking the critical role middle management teams play in the construction of meaning. Further, although sensemaking literature illustrates the influence of sensegiving and sensebreaking on sensemaking, there is limited empirical research in existing literature on how middle management teams apply sensegiving and sensebreaking to influence the process. Finally, this research fills a gap in sensemaking research in developing countries to decolonise Western-based research and ensure that local culture and ideologies are taken into account. In particular, it provides important data for the O&G sector in Bahrain, which is important for the Middle East region. Therefore, this research investigates how middle management teams use sensemaking to understand complex problems and how they apply sensegiving and sensebreaking to influence the sensemaking process in Bahrain’s O&G sector. The data was gathered using a qualitative approach using in-depth semi-structured interviews, middle management team meeting observations and operational documents review. The findings include seven themes and 26 sub-themes are visualised in a four-step sensemaking process framework. This framework also illustrates the sensemaking triggers and properties, as well as the influences and sources of information middle management teams adopt to construct meaning in dynamic O&G environments. Further, the four-step sensemaking process framework incorporates the different sensegiving and sensebreaking techniques embraced. This research extends the existing sensemaking literature by providing a descriptive empirical framework to better understand middle management team sensemaking, sensegiving and sensebreaking in dynamic O&G environments. This four-step sensemaking process framework gives middle management teams a way to organise information related to events in an objective manner, enabling them to develop effective reactions to a fast-changing environment. The framework also offers human resource practitioners a platform to assess and develop middle management sensemaking skills.