ENVIRONMENTAL GOVERNANCE AND SUSTAINABILITY IN OIL EXTRACTION: A CONCEPTUAL MODEL OF THE ROLE OF TECHNOLOGICAL INNOVATION INTERMEDIATES IN THE UAE

Abstract

The oil extraction sector in the United Arab Emirates (UAE) operates under the urgent need to align large-scale hydrocarbon production with the country’s sustainability commitments by 2050. While oil extraction companies are increasingly adopting environmental management practices (EMP), the actual mechanisms that translate these practices into sustainability across multiple dimensions remain poorly explored. This paper develops an integrated conceptual framework that examines the relationship between EMP and sustainable performance that encompasses environmental, social, and economic dimensions, with technological innovation as an important mediating mechanism. Based on a synthesis of Institutional Theory, Natural Resource Based View (NRBV), and Innovation Diffusion Theory (IDT). The framework explains how macro-level regulatory pressures drive the adoption of EMP, while micro-level organizational capabilities and advanced technological innovations such as AI-driven monitoring, IoT sensors, and carbon capture technologies transform compliance with standards into sustainable competitive advantage. The paper concludes with critical theoretical contributions and strategic implications for energy executives and policymakers leading the way toward decarbonization in an energy-dependent economy.