Oil and Gas Industry Leaders’ Strategies for the Development of Local Suppliers

Abstract: The preference for international oil and gas companies in most developing countries is to use global suppliers instead of local suppliers with inadequate capacity. Leaders in oil and gas companies who lack strategies for local supplier development contribute to the ecological and social problems in oil-rich, developing countries. Grounded in the sustainable supply chain management theory, the purpose of this multiple case study was to explore the strategies leaders in the oil and gas industry use for the sustainable development of local suppliers. The participants comprised five leaders in oil and gas companies in the Niger Delta region of Nigeria. Data were collected using semistructured interviews and a review of company documents. Yin’s five-step model guided the data analysis of the study, resulting in six emergent themes: creating business opportunities, leveraging the institutional framework, effective financial management, development of leadership and technical skills, collaborating with stakeholders, and effective performance management. A key recommendation is for leaders in the oil and gas industry to provide mentorship programs to build local suppliers\u27 financial, managerial, and technical capabilities. The implications for positive social change include the potential for leaders in the oil and gas industry to stimulate an entrepreneurial culture in their host countries and ensure the sustainability of the businesses of local suppliers to reduce unemployment