Resource‐based and property rights perspectives on value creation: the case of oil field unitization

Abstract

Resource-based theory implicitly assumes that property rights to resources are secure. Extant property rights theory enables us to relax this assumption to take into account processes where there are struggles in establishing property rights that enhance the realized economic value of resources. A case study of oil field unitization (where a single firm is designated as unit operator to develop the oil reservoir as a whole) is analyzed to illustrate the following points: a full resource-based analysis of value creation must incorporate the role of property rights to internalize externalities and to solve prisoners' dilemma problems of common-pool resources. Copyright © 2002 John Wiley & Sons, Ltd.

Understanding opportunity discovery and sustainable advantage: the role of transaction costs and property rights

“…This article is located in the intersection of the economics of property rights (EPR) and the resourcebased view (RBV), an emerging theoretical lens in strategic management research (e.g., Teece, 1986;Mahoney, 1992;Chi, 1994;Oxley, 1999;Kim and Mahoney, 2002, 2006. The argument that transaction costs and experience impact opportunity discovery contributes to the entrepreneurship literature (e.g., Kirzner, 1973;Shane, 2000;Shepherd and DeTienne, 2005), for example, by suggesting answers to key issues in the entrepreneurship literature concerning the emergence and locus of entrepreneurial opportunities (Shane and Venkataraman, 2000).…”

How can the major European oil and gas companies continue to be competitive? A comparative analysis between 2000 and 2008

“…Kim and Mahoney (2002) start from the premise that resource-based theory implicitly assumes that property rights to resources are secure. They then relaxed this assumption in the case of an oil field with different equity stakeholders but a single firm that develops and operates the field, and in which there might be difficulties in establishing property rights that create or enhance the realised economic value of the resources.…”

“…A few studies have focused only on property-based resources such as oil fields (Kim and Mahoney, 2002) or focused only on knowledge-based resources such as employees and knowledge creation and application (Gardner et al, 2012;Nag and Gioia, 2012;Grant, 1996). Other studies have looked at the relationship between performance and environmental concerns and climate change (Levy and Kolk, 2002;Russo and Fouts, 1997).…”

Entrepreneurship, Transaction Costs, and Resource Attributes

“…Like Kim and Mahoney (2006), we consider Austrian economics to be a natural complement to notions of property rights and transaction costs (see also Littlechild, 1986;Foss and Foss, 2000;Kim and Mahoney, 2002;Foss, Foss, Klein and Klein, 2006). Modern Austrian economists (such as Kirzner 1973;O'Driscoll and Rizzo 1985;Littlechild 1986) view economic activities as ongoing processes of discovery.…”