Validation of Information Technology Value Model for Petroleum Industry

Nowadays, method has been used to validate Information Technology (IT) value model for oil and gas industry. The purpose of this research is to validate IT value model that has been derived from existing studies. To do the validation, dynamic Partial Adjustment Valuation (PAV) can be carried out. The method is conducted by comparing Average Performance Ratio (APR) between two factors (without IT) model and three factors (with IT) model. The result indicates that APR of three factors model is higher than two factors model. It can be concluded that the model is valid. This research gives contribution to the growing body of knowledge in examining IT for oil and gas industry by using Resource-Based View (RBV).