Technological change and industry structure: A case study of the petroleum industry

Author: Voola, Jo

Source: Economics of Innovation and New Technology, Volume 15, Number 3, April 2006 , pp. 271-288(18)

Publisher: Routledge, part of the Taylor & Francis Group

Buy & download fulltext article:

Price: $50.43 plus tax (Refund Policy)

Abstract:

This paper is a case study of the impact of an exogenous improvement of a process technology on the structure of the petroleum industry. The paper examines the role of three-dimensional seismology in bringing about the 1990s oil industry consolidation. This proposition is examined in the context of evolutionary economics and in a non-cooperative game theory, concluding with a reference to Steindl's theory of industry dynamics. The significance of this contribution lies chiefly in highlighting the fact that exogenous technological change can, under appropriate conditions, play a significant role in industry dynamics. This reference to the exogenous change in technology is a departure from the traditional consideration of endogenity of industry structure in relation to technological development and, therefore, a novelty. Secondly, the documentation of 3D seismology as a significant process technology of the petroleum industry is significant.

Keywords: Process technology; Seismology; Industry dynamics; Mergers

Document Type: Research article

DOI: http://dx.doi.org/10.1080/10438590500149597

Affiliations: 1: Economics Program, Mail Bag 251, UWA Business School, The University of Western Australia, Crawley, Western Australia, 6009, Australia

Publication date: 2006-04-01

More about this publication?