Identifying international oil companies (IOCs) responsibilities to improve competitiveness of indigenous companies in Nigeria.
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Indigenous companies' participation in the Nigerian oil and gas industry has persistently been low despite their importance in generating income, employment, building local capacity and reducing poverty. This study aimed at identifying international oil companies' (IOCs) responsibilities to improve competitiveness among indigenous companies; factors that motivate IOCs to include indigenous suppliers in their value chains and also to explore the business strategies indigenous suppliers use to compete favourably in the Nigerian oil and gas industry. The research method used for this thesis is a qualitative, exploratory cross-sectional study and the target population were eight indigenous companies (IC) consisted of owners and employees, and two IOCs operating in Delta State, Lagos State and Port-Harcourt, Nigeria. Semi-structured interviews and review of company documents were used to collect data for this study. Interviews were conducted with ten participants. Data analysis included transcription, coding, interpreting and reporting the themes, member checking was also used to strengthen the trustworthiness of the interpretations. Purposive sampling involving both criterion and convenience sampling were used to select the participants. The data were analyzed through an interpretive paradigm using the Ritchie and Spencer’s (1994) framework analysis. Findings from the study confirm that local policies, local infrastructure, local environment, local capabilities of indigenous companies, actors and linkages are important strategies to improve company profitability and economy growth. Findings also showed that IOCs should be involved in the training of local suppliers to enable them have a globally accepted standard to do business. Furthermore, policy makers must design coherent policies that make it easier for indigenous firms to operate successfully.
Master's thesis in Strategy and management