Transferring exploration and production activities within the UK's upstream oil and gas industry: a capabilities perspective

John Howard Finch

    Research output: Contribution to journalArticle

    13 Citations (Scopus)

    Abstract

    Following Richardson (1972), capabilities comprise tacit, personal, subjective and context-specific knowledge that may be shared in practice only with difficulty across small, task oriented groups within firms or other types of organisation, and are expressed in the form of activities. The definition has been influential, and its focus on tacit knowledge has, arguably, encouraged research activities in the form of studies adopting experimental and simulation techniques, while providing less impetus for complementary empirical inquiry. This paper presents an empirical inquiry into an aspect of the development of capabilities in the UK's upstream oil and gas industry promoted by the changing organisation of activities across oil companies and contracting and supply companies. The main argument is that researchers can gain partial and subjective access to capabilities - distinct from activities - because individuals involved in the industry articulate and codify understandings of capabilities through practical theorising and commercial experimenting. Such articulation and codification plays an important role in the development of capabilities in industrial contexts.

    Original languageEnglish
    Pages (from-to)55-81
    Number of pages26
    JournalJournal of Evolutionary Economics
    Volume12
    Issue number1
    DOIs
    Publication statusPublished - 2002

    Keywords

    • upstream oil and gas industry
    • capabilities
    • supply chains
    • industry business cycle
    • codified and tacit knowledge
    • TRANSACTION COST THEORY
    • MULTINATIONAL FIRM
    • MARKET FAILURE
    • KNOWLEDGE
    • ORGANIZATION
    • ENTERPRISE
    • COMPLEX

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