Supplier Qualification Sub-Process from a Sustained Perspective: Generation of Dynamic Capabilities

Abstract

This research describes the generation of dynamic capabilities in the Repsol supplier qualification sub-process based on a sustained value chain, using a proposed model consisting of seven stages of supplier approval. A qualitative and descriptive approach, focusing on social and sustained commitment methodology has been applied. An analysis of a case of a successful firm in the supplier qualification sub-process has been performed based on the achievement of positive results from the dynamic capabilities theory. The results show how REPSOL contributes to the sustained development of its suppliers with specific actions arising from the implementation of its dynamic capabilities in organizational governance, the environment, human rights, labor practices, consumer issues, fair operating practices, and developing the communities with which it operates, in a model that seeks to respond to the expectations of society. The research performed shows that REPSOL's capabilities are generated by influencing their competitive efficiency and better defining a sustained value chain integrated with its suppliers. The description and analysis of REPSOL's supplier qualification sub-process becomes a business guideline for reaching dynamic capabilities in the process of qualification of suppliers. The proposed model means an inspiration for firms operating in the same, or different, industries.

Sustainability in Smart Farms: Its Impact on Performance

“…All the attributes used for the implementation of the indexes are shown on Tables 1-5). The values of each variable were calculated by the Delphi method [27,30,42] using the opinion of 157 farmers. They were assessed by means of a one to five Likert scale, where one was the least important and five the most important.…”

“…Different dimensions [20] compose the management of processes and its study requires from a dynamic and holistic process where the existent interactions amongst the different elements in the system are considered [30,41]. In this conceptual framework, the different activities constitute a process where the activities are managed in a systematic way [42]. According to what it has been explained in the Operative Program (2014), 96% of Small and Medium Size Firms (SMEs) in Castilla-La Mancha region present specific problems as a consequence of the low level in terms of capitalization, reduce turnover and difficulties in the access to finance, lower levels of inter-firm cooperation and lacks in the managerial, commercial, and innovation capabilities.…”

“…To understand the sources of a firm's training sustainability, the attention must be paid to the structure of communication between the external environment and the organization, as well as among the subunits of the organization, and on the character and distribution of expertise within the organization. As [42] describes, it consists of acquiring and assimilating the external information by integrating it in the firm's knowledge base with the main objective of improving processes and strategies applied to organizations. Firms that possess a high level of training sustainability, present high levels of learning capabilities, by properly integrating external information and converting it into knowledge that can be warehoused [30,42].…”

“…As [42] describes, it consists of acquiring and assimilating the external information by integrating it in the firm's knowledge base with the main objective of improving processes and strategies applied to organizations. Firms that possess a high level of training sustainability, present high levels of learning capabilities, by properly integrating external information and converting it into knowledge that can be warehoused [30,42].…”

“…This way, as firms have access to different sources of information, as it can be the access to experts in the various activities realized in a farm (as the advisers and experts in PDO) workers will be able to improve their knowledge though including in the firm the external information accessed. The establishment of processes and the selection of people and leaders are fundamental, since the employees' educational level is a key factor in the absorption capability [26,42]. By considering previous arguments, the Hypothesis 4 is described: The farm's training sustainability will positively influence the return on assets (ROA) and return on investment (RF) as profit indicators.…”