Strategic Capabilities in the Oil and Gas Industry: A Study in the Midstream Sector

Different theories are presented by strategic management scholars and thinkers to explain how to achieve a competitive advantage, and dynamic capability theory which believed that gaining a competitive advantage is closely linked with organizational capabilities; is one of the clearest theories about competitive advantage in today's business world. In this regard, current research, based on dynamic capability view, employs a qualitative and explorative approach to identify and analyze of capabilities which influence the competitiveness and gaining competitive advantage in the midstream sector of oil and gas industry. In order to achieve this goal, data were gathered through 21 semi-structured interviews with top level managers of 6 refineries, integrated with comments of some experts, and analyzed by theme analysis method. Findings showed that gaining competitive advantage in the midstream of oil and gas industry rooted in both of inward capability of productivity and value-addition (products qualification, operational efficiency and technological capability) and outward capability of business strategic sustainability (business development, market orientation and sustainability of supply chain). This result reveals the importance of balanced approach in gaining competitive advantage in the oil and gas industry.