Conflict or collaboration: the changing nature of inter-firm relationships in the UK Oil and Gas industry

Abstract

Changes in contracting customs in the UK oflshore oil and gas industy have k d to changed relationships between companies, including the small, technology-based, oil-related companies which have been a source ofmuch innovation. Issues raised by the research reported here include the impact of these changes on the industrial network and supp& relationships ofthe industry. Continuing innovation is regarded by all industy members as being ofgeat importance for reducing costs and uncertainties in the North Sea industy. The changes within the industy have broken many ofthe linkages b e t w e e n h s which mediated this innovation in the past. This paper Presents the initialjndings o f a project to a n a h~e the new relationships which are developirg and their impact on innovation. Ear4 conclusions include,in accordance with predictions3om theoly, that personal relationships assume relative4 zeat importance when industy norms are poor4 established, and that multipb relationships between jim under these circumstances are charactenied b y littk trust, incomplek integration of network knowledge and colEflcts of interest.

How environmental regulations affect innovation in the Australian oil and gas industry: going beyond the Porter Hypothesis

“…We chose our cases using purposive sampling to construct appropriate illustrative case studies to explore the relationships observed in the quantitative data. A theoretical sampling frame was developed to collect qualitative data consisting of three industry tiers: operators, contractors, and suppliers (Crabtree et al, 1997). Operators have legal responsibility for upstream oil and with executives firms operating in the Australian oil and gas industry.…”

Novel product innovation in project-based firms: explaining innovation where interdependent firms deliver complex system-level outcomes

“…As project owners, these firms set the tone for innovation by setting functional specifications for components, subsystems, and their related CoPS; by introducing design challenges tied to the particular project; and at the same time bringing their own innovations and technologies into the projects (Barlow, 2000;Crabtree et al, 1997). For instance, consider the $52b Gorgon natural gas development project in Western Australia.…”

“…operators, contractors, and suppliers Crabtree et al, 1997). The industry tier structure aligns directly with project-based production networks that Gann and Salter (2000) discuss, and their terminology is placed alongside the industry terminology in Table 7.…”

“…The industry tier structure aligns directly with project-based production networks that Gann and Salter (2000) discuss, and their terminology is placed alongside the industry terminology in Table 7. ultimate responsibility for the development of oil and gas fields (Barlow, 2000;Bower et al, 1997;Crabtree et al, 1997). In the language of Gann and Salter (2000), operators are customers.…”

“…These specialist firms work together in the conduct of industry projects, and interrelate to develop technological advances and to support the overall innovation process of the industry (Acha and Cusmano, 2005;Crabtree et al, 1997). Despite trends in the largest companies toward vertical integration, exploration, construction, and production still requires a great deal of subcontracting to access a range of specialised firms (Barlow, 2000;Perrons & Donnelly, 2012;Stinchcombe & Heimer, 1985).…”