Int. J Sup. Chain. Mgt Vol. 3, No. 2, June 2014 70 Dynamic Supply Chain Capabilities: A Case Study in Oil and Gas Industry Shatina Saad #1 , Zulkifli Mohamed Udin *2 , Norlena Hasnan *3 # Faculty of Business Management, Universiti Teknologi MARA 42300 Bandar Puncak Alam, Selangor, Malaysia 1 shatinas@salam.uitm.edu.my *2 School of Technology Management and Logistics, Universiti Utara Malaysia 06010 Sintok, Kedah, Malaysia 2 zulkifli@uum.edu.my * Universiti Utara Malaysia Kuala Lumpur 41-3 Jalan Raja Muda Abdul Aziz, 50300 Kuala Lumpur, Malaysia 3 norlena@uum.edu.my Abstract— Supply chain (SC) is a dynamic process that entails a continuous flow of information, materials and funds across multiple functional areas, within and between chain members in order to meet customer’s requirements and to maximize their profit. Such dynamic process requires instantaneous acquisition and constant re-evaluation of partners, technologies and organizational structures. However, firms may encounter problems related to the dynamic process. Petroleum companies, in this globalization era are one of the dynamic supply chain entities, which require dynamic processes of capabilities, due to their high degree of uncertainties. Motivated by the complexity of uncertainty in the petroleum companies and its typical characteristic of SC, this study intends to understand the process of dynamic SC management. Using the resource-based view and organizational learning theory as the basis for developing the framework of the study, this study aimed to identify and understand the process of dynamic SC capabilities. Company in oil and gas in Malaysia will be chosen as the sample case in understanding the process of the dynamic SC capabilities and SC performance. Due to the subjectivity of the study that requires understanding process of SC, this study proposes to employ interpretive paradigm where it would guide towards rigour qualitative methodology. This study will provide rich and thick description of the dynamic of SC where the outcome will contribute to the managerial and theoretical perspective of SC management in oil and gas industry. Keywords— dynamic supply chain, dynamic capabilities, supply chain management, case study, oil and gas 1. Introduction Supply chain management (SCM) has received in recent years a great deal of attention by researchers and practitioners. Effective SCM will lead to a lowering of the total amount of resources required to provide the essential level of customer service to a specific segment and improving customer service through increased product availability and reduced order cycle time [1]; engage in information exchange (forecasting techniques, inventory management, delivery) and structural collaboration (just-in-time system, outsourcing, vendor-managed inventory and co-locating plants) [2, 3]; relationships with downstream supply chain partners to create end-customer value [4] and maximize benefits and minimize costs along the supply chain [5]. Thus, the nature of SCM becomes visible to participating companies with successful implementation in the ever-changing global environment of the business world. Risks abound, and it greatly affects the decision-making processes of the business management. According to Jain, Wadhwa and Deshmukh [6], a supply chain is a dynamic process and involves the constant flow of information, materials, and funds across multiple functional areas both within and between chain members. Members in the chain need to cooperate with their business partners in order to meet customer’s needs and to maximize their profit. However, it is a very difficult task in managing the multiple collaborations in a supply chain because there are so many firms involved in the supply chain operations with its own resources and objectives. The interdependence of multistage processes also requires real-time operation and decision making across different tasks, functional areas, and organizational boundaries in order to deal with problems and uncertainties. The strategic move of focus for mass customization, quick response, and high-quality service cannot be achieved without more complex cooperation and dynamic structure of supply chains. Teece, Pisano and Shuen [7] identified a dynamic collaboration capability should help a company access, shift and leverage supply chain resources to rapidly respond to a changing competitive environment. A dynamic process also involves the simultaneous acquisition and continuous re-evaluation of partners, technologies, ______________________________________________________________ International Journal of Supply Chain Management IJSCM, ISSN: 2050-7399 (Online), 2051-3771 (Print) Copyright © ExcelingTech Pub, UK (http://excelingtech.co.uk/)