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

Changes in contracting customs in the UK offshore oil and gas industry have led to changed relationships between companies, including the small, technology-based, oil-related companies which have been a source of much innovation. Issues raised by the research reported here include the impact of these changes on the industrial network and supply relationships of the industry. Continuing innovation is regarded by all industry members as being of gret importance for reducing costs and undertainsties in the North Sea industry. The changes within the industry have broken many of the linkages between firmsd which nediated this innovation in the past. This paper presents the initial findings of a project to analyze the new relationships which are developing, and their impact on innovation. Early conclusions include, in accordance with predictions from theory, that personal relationships assume relatively great importance when industry norms are poorly established, and that multiple relationships between firms under these circumstances are characterized by little trust, imcomplete intergration of network knowledge and conflicts of interest.