CHAPTER FIVE RESEARCH FINDINGS
5.3 Describing the Case Study
5.3.2 Themes and Significant Statements
The researcher adopted the systematic coding process as Miles and Huberman (1994) recommendation. The researcher created a list of initial codes in the beginning of the data collection process from the evolving conceptual framework developed, problem statements, and research questions. Presetting of codes helped and forced the researcher to tie the research questions and conceptual framework is used only as a
guide, to the data directly. The codes were given short descriptive labels and themes were developed coherently, listed according to importance and are part of the governing conceptual structure.
The case study specified the researcher “to provide examples of the data analysis at each step in the process. As discussed in chapter 4, the first step was bracketing, or “epoché,” which was addressed by taking 15 minutes before each interview to reflect on assumptions and experience that may influence the research and by considering how the questions could be of service to participants in helping them explicate their understanding of their learning and leadership. The second step was reading the transcripts; each was read at least twice to gain familiarity with the words and the intent before any coding began. This section includes the results of the next two steps: significant statements or horizontalization (third step) and development of formulated meanings (fourth step). The next section of this chapter presents the results for Step 6, situated descriptions, and the themes or axial codes (fifth step) that were developed are discussed within the context of the findings related to the action learning process, learning, and leadership.”
“The experiences of each individual emerged because of one in-depth interview that asked open-ended questions. An inductive approach was used to construct the meaning from the statements. Each participant’s significant statements or horizon contributed to the overall meaning of the collective experience.” To provide an example of the horizonalization process, two examples are provided in Table 5.2 and Table 5.3. The significant statements for the other eight participants are located in Appendix 4.
Significant statements Formulated meaning In many other industries Oil and gas supply chain is more
organized
Structured SC; SC environment It is quite high-level integrity. They have structural process.
Meaning you deal directly with oil company very difficult for someone try to breach, delay, and maneuvers even for simple things like e.g. your prices – even though you have close good relationship or know your client and client can help you – your price per lot will enter once only – no way to change or to adjust – no way – cannot
Company control by government; as monitoring body
My company is relatively small. Less than 10 people including free-lancer. I think quite good to understand supply chain depends on the total companies. Service too is part of the chain. During MOGSEC this is the good space for us as the chain players.
Service provider; value chain
You cannot run away. Audited account must update and every year auditor will come and audit. Depends on when the financial year will end. License was given with condition letter.
Everything has its own due date, if you did not do it your license will be expired and drop from the system. Like Sapura, they appoint one-person to take care of that task. Once drop out it so difficult to join backed.
Regular monitoring; license retention; renewal; regular audit
We also provide training. Competency
development PETRONAS allows sole sourcing but it happen when technical
solution only. Even though technical to invite they will fight but we cannot meet the requirement. Report verification due to technical but we are not qualified. Chances are very rare to get during the pre-qualification. Everything is control by
PETRONAS. Eventually, all contractors follow the standard process. “recondition thinking & process”
Single sourcing; technical specification; company control by government; monitoring body
PETRONAS really to take care their strategic services. At the beginning, apply the simple jobs not the main. Once sustain apply for the license. 1 year after operations and have, the audited account then submits for the license. There are load of works for O&G. A lots... Networking is not only clients but also contractors. You need their help at the earlier stage supply to others. Client still offer even though you do not have license but once you got license you will got more clients. For urgent just ask for the big one from the clients.
License application; categories; monitoring institution; Operations pre-requirement; anchor company
When all need urgent such as ROB, vessel, list the ROB I come with mine and other company come also but with verification production loss and risk further. Need to plan & structural maintenance is not there. Something happen unexpected then we go and during that time price is not the main issue.
Urgent orders; price uncertainty;
negotiation; co- evolving; Table 5.2
Table 5.2 (Continued)
Significant statements Formulated meaning
MOGSE is for those companies provide service. MOJEC is for engineering consultant or more consultancies to another group. OSFAM is for fabricators. MOGSE really helps their members. End of the day every day we use services. Let say, supply pump always need service such as maintenance.
Joining specific society in the industry; society; support association
Even same service I did not go marketing but I still got invitation. End of the day who will get the preferences is one that meet the specification and comfortable. Previously, I have been award for project. I just submitted, and awarded.
However, main thing once registered then you still be invited.
Fair opportunities for bidding; open mindedness
Upfront marketing might know and offer solution. Read and interact slightly different. Marketing still required having said without marketing still project could be awarded
Marketing; building relationship; collaboration Corruption in PETRONAS is there but still not proof way of
getting business. The committee consists of 10 members and cannot buy out all. Some did not like so no way… End of the day still fight for it but still need to do basic marketing function. More else cash involved does not work... not a pool proof thing. It is very strict. PETRONAS did up to extend removed all those people corrupted. When you go to group supply chain all are women.
Integrity; ethics & professionalism
In this industry, we cannot play with certain level of quality. I know other industry inspect under the ship, call ROB contractors – but due to high level it was awarded to wrong company. If you give to company that is not involves with technical company, then you realize the ship damage. In O&G cannot take the chance for that.
High risk & safety; HSE
Petrochemicals supplies to cosmetics industry and at the end in Malaysia GDP contributing is from O&G. That volume also shows how big the industry. Surrounding KLCC most are O&G companies. Tan&Tan, G Tower. For me if I rental here just waste of time, my staff will be burden, so expensive to eat & to do anything. My office now is in Pandan Indah. It is near yet so far. If client call for meeting just take half an hour only to reach the place. I am not going to move the office to Damansara. Just a waste of time. Now ok still close to KLCC.
Location; Close
proximity to supply and demand
O&G has may office in KL. They spent hundred thousand & millions for exhibition. During that exhibition, many visitors come and they spent for hotel, flights, foods & others. Wait you see the incoming exhibition. OGA2013 is expensive & usually nothing below RM2000/3000 plus for the cost fee. MOGSCE exhibition is small. Wait the OGA. It is 5/6 times huge. It takes out whole KLCC hall & external tent. The exhibition is
worldwide with all clients & whoever will come.
Building relationship; participating in exhibition;
collaboration; strategic partnership; potential customer & suppliers
Table 5.2 (Continued)
Significant statements Formulated meaning
Now PETRONAS business model go into downstream. All this while, they focus more on exploration and upstream. Now focusing at the downstream, we will sell to by-products and can sell to others too. If the hydrocarbon finish, then no more to explore for hydrocarbon but now move to petrochemicals. Many now in Kerteh, Bintulu now have massive petrochemical.
Potential business opportunities; value chain; sustainability
People do not understand what I am doing. We do have system not the online and real time line courier system & must have tracking & we cannot assume everything is okay. Our company is ISO 9001 as we need to comply to the standard. We have shipment tracking but no software use. We serviced to
individual client or project based. Process control at our place is to very great extent and integrated quality info. We do share PETRONAS system hence all contractors online,
Community understanding; perception; ISO; information sharing; SC environment; knowledge accessing; standard recognition; information shared Challenge dealing with PETRONAS is the terms and conditions.
PETRONAS can engage with their lawyers to discuss contract with us but they did not. They just said remove the clause. If acceptable reason okay but if otherwise especially involves monetary and huge commercial impact term services such as 5 million. Anything happen needs to consider the unlimited liability. If anything happens, not only affect the business but also our lives. The business also will go. Now I only accept up to the contract value only. There is insurance but it will cover only related tasks.
Terms & condition in contract; mutual agreement; negotiation; knowledge accessing; co-evolving
PETRONAS is good in managing contractors. From time to time, they will call us. Introduce new system, strategy, new vision. They will call us and they will organize in hotel. E.g. PETRONAS vision being forward zero tolerance on safety that shall be in the criteria of the evaluation in your project, so they will roll out to us their direction.
Managing contractors; information sharing; update information; knowledge accessed suppliers’ relationship;
The challenge is market situation as you know client expect prices go lower & lower whereas cannot. In order to get high- income country but with the process is difficult due to cost. Operations costs are difficult to strengthen unless if we can control.
Market uncertainty; challenges
Our key management personnel accumulated years of experience in oil and gas combined with strategic and reputable foreign and local principals and technology partners.
Competence workers; supplier relationship; HR; strategic
partnership We also inculcate several values in the company. We provide
innovative, quality, and cost effective solutions that exceed clients’ requirements and resolve clients' operational issues.
Values; customer oriented; HSE
Significant statements Formulated meaning Our company is just a small company. One person will do
everything. We are more towards distributor. We sell the existing product. If we can manufacture, we can source from material & manufacture it.
Competence workers; service provider; HR
We are the one who treat the consumer. Even though it is small but it is so critical.
Acknowledge client; Customer oriented SCM is important exactly in what area who are in.. Understand role of
SCM; Knowledgeable in SCM
Dalam o&g ada upstream & downstream & sometimes
midstream.. including distribution & people only assume setakat isi minyak ajer.
Collaboration in value chain
PETRONAS banyak award marginal field so company kecik2 yang dulu dah operate tapi ada balance sikit2 so dia bagi project pada company lain.. kalau confident boleh buat duit then dia ambil..
Business opportunities; Potential clients
difficult to get the lisence.. macam2 kena ada.. product @ & services sendiri.. kalau product kena dapat lantikan sole agent..
Difficulties for license; Challenges to startup the business barang ni tapi brand lain.. kalau korea barang stuck kat
evaluation.. then dah disqualified.. ada technical evaluation… susah bila delivery nak urgent kita deliver 20 minggu dia nak 10 minggu.. manufacturer kat 20 minggu jugak.. so kita disqualified awal lagi..
Manage supply; Supplier assessment
The company sets on their in-house and partners' experience to build in house capabilities for the organizational growth of the company.
Internal capabilities / sharing experience; Competency development Through strong partnership with various reputable and established
manufacturers in the industries served, the company managed to continue to innovate, expanding the offers and solutions into some niche areas of application.
Collaboration / potential clients; Strategic partnership / competitive advantage The head office is located in Kuala Lumpur and two other offices
in Miri, Sarawak and Kertih, Terengganu
Location; Proximity to supply & demand The company also devoted to the Quality Policy to ensure that its
products and services fully meets the requirements of its customers at all times.
Quality focus /customer oriented
The goal is to achieve a high level of customer satisfaction at all time with the full management and business objective support.
Top mgmt support; Customer oriented / sustainability Table 5.3
The aforementioned discussions have explained that this study wanted to explore the dynamic supply chain capabilities of the oil and gas industry. In addition, the study also wanted to understand the effect of supply chain orientation and learning orientation of firm’s capabilities with the dynamic supply chain capabilities on oil and gas industry in Malaysia. The views of participants were collected. The subsequent sections will describe the case study findings based on the research questions.