Abstract:
This thesis looks at the UK onshore oil and gas production industry and follows
the history of a population of firms over a fifteen-year period following the
industry's renaissance. It examines the linkage between firm survival, selection
pressures and adaptation responses at the firm level, especially the role of
discretionary adaptation, specifically exploration and exploitation strategies.
Taking a Realist approach and using quantitative and qualitative methods for
triangulation on a new data base derived from archival data, as well as
informant interviews, it tests seven hypotheses' about post-entry survival of
firms.
The quantitative findings suggest that firm survival within this industry is linked
to discretionary adaptation, when measured at the firm level, and to a mixture of
selection and adaptation forces when measured for each firm for each individual
year. The qualitative research suggests that selection factors dominate. This
difference in views is unresolved. However the small, sparse population and
the nature of the oil and gas industry compared with other common research
contexts such as manufacturing or service firms suggests the results be treated
with caution as befits a preliminary investigation.
The major findings include limited support for the theory that the external
environment is the major determinant of firm survival, though environment
components affect firms differentially; resolution of apparent literature
differences relating to the sequencing of exploration and exploitation and
potential tangible evidence of coevolution. The research also finds that, though
selection may be considered important by industry players, discretionary
adaptation appears to play the key role, and that the key survival drivers for this
population are intra-industry ties, exploitation experience and a
learning/experience component. Selection has a place, however, in
determining the life-cycle of the firm returning to be a key survival driver at
certain ages of the firm inside the industry boundary.
