Assessing drivers of export orientation in the subsea oil and gas industry.
The purpose of this short study was to identify the drivers of export orientation of firms in the subsea oil and gas industry in Western Norway. As the oil fields in the North Sea are approaching a stage of maturity, gaining knowledge of these drivers is crucial. An online survey was conducted of firms operating in the subsea oil and gas industry in the region. Consistent with previous research, the data reveal that product innovation and a majority share of international ownership increase firms' export rates. The use of instrumental variables indicates that both product innovation and international ownership are causes of subsea petroleum exports. The study moreover finds that subcontractors have a lower rate of direct exports than system providers, but international ownership in particular boosts subcontractors' export rates, probably by decreasing their market dependency on regional system providers. A clear recommendation for managers and stakeholders is that they should encourage foreign investments throughout the value chain. The results of such a strategy appear to be especially positive for subcontractors.
Faculty of Engineering and Business Administration, Centre for Innovation, Bergen University College, PO Box 7030, 5020 Bergen, Norway.
Jarle
J
Aarstad
Faculty of Engineering and Business Administration, Centre for Innovation, Bergen University College, PO Box 7030, 5020 Bergen, Norway.
Inger Beate
IB
Pettersen
Faculty of Engineering and Business Administration, Centre for Innovation, Bergen University College, PO Box 7030, 5020 Bergen, Norway.
Stig-Erik
SE
Jakobsen
Export orientation; Innovation; Internationalization; Piggybacking; Subsea oil and gas industry; Value chain position