Registro de incidencias / Episodios de calidad

This section begins with the industrial or system dynamics theory as foundation, which is followed by discussion of the resource based theory, dynamic capability theory and learning organization theory as the complimentary theories.

3.2.1 Industrial or System Dynamics

Industrial or system dynamic has its origins in control engineering and management (Angerhofer & Angelides, 2000). “The approach uses a perspective based on information feedback and delays to understand the dynamic behaviour of complex physical, biological, and social systems. Forrester (1961) defined Industrial Dynamics as the study of the information feedback characteristics of industrial activity to show how organizational structure, amplification (in policies), and time delays (in decision and actions) interact to influence the success of the enterprise. It treats the interactions between the flows of information, money, orders, materials, personnel, and capital equipment in a company, an industry, or a national economy.”

Source: Angerhofer & Angelides (2000)

Mentzer, et al. (2001) cited Forrester (1968) proposed that “after a period of research and development involving basic analytic techniques, “there will come general recognition of the advantage enjoyed by the pioneering management who have been the first to improve their understanding of the interrelationships between separate company functions and between the company and its markets, its industry, and the national economy”. Though the article is more than fifty years old, it appears that Forrester identified key management issues and illustrated the dynamics of factors associated with the phenomenon referred to in contemporary business literature as in SCM.”

Figure 3.1

3.2.2 Resource-based View

The Resource-based view (RBV) emphasizes “the role of resources and capabilities in forming the basis of competitive advantage. Broadly stated, a resource is something that a firm possesses, which can include physical and financial assets as well as employees’ skills and organizational (social) processes. A capability, in contrast, is something a firm is able to perform, which stems from resources and routines upon which the firm can draw. The key element of RBV is its focus on factors internal to the firm that lead to sustained competitive advantage. Given this focus, it marked a distinct departure from analysis at the industry or strategic group level, which had dominated strategy research and teaching prior to the emergence of RBV” (Barney, 1991; Hart & Dowell, 2011a).

RBV proposes that “firms with rare, valuable, inimitable and non-substitutable resources have the ability to achieve a superior performance (Eisenhardt & Martin, 2000). These RBV attributes are called the VRIN (valuable, rare, inimitable and non- substitutable). The inputs into organizations are considered as the resources. Resources could either be knowledge-based resources or property-based resources. The property based resources referred to tangible input resources such as materials. The knowledge based resources are the ways firms combine the tangible inputs. Between these resources, the knowledge-based resources are particularly important in creating the sustainable competitive advantage as it is difficult to imitate. As the theory suggests that firms with rare and inimitable resources are better able to achieve its sustainable competitive advantage, firms that have better knowledge resources are able to have a superior performance.”

3.2.3 Dynamic Capabilities Theory

Teece et al. (1997) defined “dynamic capabilities as the firm’s ability to integrate, build, and reconfigure internal and external competences to address rapidly changing environments. Dynamic capabilities thus reflect an organization’s ability to achieve new and innovative forms of competitive advantage given path dependencies and market positions” (Leonard-Barton, 1992).

The dimensions of dynamic capabilities arose from a key shortcoming of the resource-based view of the firm. “The RBV has been criticized for ignoring factors surrounding resources, instead assuming that they simply exist. Considerations such as how resources are developed, how they are integrated within the firm and how they are released have been under-explored in the literature. Dynamic capabilities attempt to bridge these gaps by adopting a process approach: by acting as a buffer between firm resources and the changing business environment, dynamic resources help a firm adjust its resource mix and thereby maintain the sustainability of the firm’s competitive advantage, which otherwise might be quickly eroded. So, while the RBV emphasizes resource choice or the selecting of appropriate resources, dynamic capabilities emphasize resource development and renewal.”

3.2.4 Organizational Learning Theory

Organizational learning theory states that, “in order to be competitive in a changing environment, organizations must change their goals and actions to reach those goals. In order for learning to occur, the firm must make mindful decision to change actions in response to a change in circumstances, must consciously link action to outcome, and must remember the outcome. It does not become organizational learning until the

information is shared, stored in organizational memory in such a way that it may be transmitted and accessed, and used for organizational goals” (Huber, 1991).

3.2.5 Convergence of Theories

At this junction, it is worthwhile explaining the rational of deploying the four theories in this study. The four theories are industrial dynamic theory, resource based view theory, dynamic capability theory and organizational theory. In a nutshell, collaboration between service contractors and oil and gas players is a complex interaction between two entities. Convergence of the above mentioned theories are necessary. Industrial dynamic theory forms the fundamental part of the study in assisting the researcher to conceptualize the dynamic and complex supply chain management.