Rypestøl, J.O., Kyllingstad, N., & Martin, R.
The title of the article is Asset Modification for Firm- and Industry-Restructuring in Times of Economic Crisis.
The article is under consideration for publication in Geoforum. The current status is Major revisions.
to the literature on regional industrial restructuring, this article presents
novel findings on how firms modify assets for innovation-based restructuring in
times of crises. Empirically, the article draws on interviews with 33 firms in the
oil and gas (O&G) industry in Southern Norway, which experienced a crisis
caused by a massive fall in global oil prices in 2014-2015. We investigate how the
crisis affected the asset base of the firms, how they modified their assets for
innovation-based restructuring during the crisis, and how and to what extent
they drew on system-level assets to overcome the crisis. The central findings
are that the firms experienced a substantial asset drain. Asset reuse was the prevailing
mode of asset modification in the early phase of the crisis, while firms
bridged assets with other firms and organisations to increase innovation
activity in the later phase of the crisis. System-level assets were of little
relevance, except for the local university. The case illustrates that in times
of crises, firms can benefit from an industrial milieu that supports inter-organisational
collaboration and from well-aligned firm- and system-level assets.