English abstract
Local suppliers are considered an integral part of any economy due to their
significant contributions to the gross domestic product (GDP) and their role in creating
employment opportunities for the local workforce.
In addition, supply chains are only as strong as their weakest links, which are - in
this case - the low-tier suppliers in the oil and gas operations. However, local suppliers
face numerous challenges that might hinder their growth and impact their survival in the
volatile market environment. Therefore, the oil and gas sector in Oman, being the major
contributor to the national economy, has adopted several initiatives that support local
suppliers in developing a competitive Indigenous market that is up to global health,
safety, environment, and quality standards such as the International Organization for
Standardization (ISO) standards, American Petroleum Institute (API) standards, and
other industry-specific standards. This study aimed to explore the relationship between
In-country Value (ICV) vendor development programs as long-term initiatives using
theories and experiences from the oil and gas sector in Oman.
To collect the required data for this study, a survey questionnaire was used and
distributed to selected professionals, who exhibit competence, extensive industry
knowledge, and specialized skills, from the oil and gas sector in Oman to provide insights
on the influence that vendor development initiatives play on the organizational
performance of local suppliers and how those initiatives impact the business
sustainability and competitive advantage within the local industry. The Results showed
that there is a strong relationship between the vendor development initiatives and the
organizational performance of suppliers, and those initiatives helped local suppliers
overcome numerous challenges, sustain their businesses, and provide competitive
products and services.
