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

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  • Jongwook Kim

    (Department of Business Administration, College of Commerce and Business Administration, University of Illinois at Urbana-Champaign, 350 Wohlers Hall 1206 South Sixth Street, Champaign, IL 61820, USA)

  • Joseph T. Mahoney

    (Department of Business Administration, College of Commerce and Business Administration, University of Illinois at Urbana-Champaign, 350 Wohlers Hall 1206 South Sixth Street, Champaign, IL 61820, USA)

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    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.

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    Bibliographic Info

    Article provided by John Wiley & Sons, Ltd. in its journal Managerial and Decision Economics.

    Volume (Year): 23 (2002)
    Issue (Month): 4-5 ()
    Pages: 225-245

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    Handle: RePEc:wly:mgtdec:v:23:y:2002:i:4-5:p:225-245

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    Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/7976

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    Cited by:
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    2. Mahoney, Joseph & Asher, Cheryl Carleton & Mahoney, James, 2004. "Towards a Property Rights Foundation for a Stakeholder Theory of the Firm," Working Papers 04-0116, University of Illinois at Urbana-Champaign, College of Business.
    3. Dudian Monica & Trasca Daniela & Mitrache Andreea & Georgescu Adriana & Georgescu Adriana, 2008. "The Boundaries Of The Firm. The Case Of Oil Industry In Romania," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 2(1), pages 112-117, May.
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    9. Frohwein, Torsten & Burr, Wolfgang, 2011. "Emerging issues in the further development of the resource-based view of the firm," Research Papers on Innovation, Services and Technology 1/2011, University of Stuttgart, Institute of Business Administration, Department I - Institute of Research & Development and Innovation Management.
    10. Kim, Jongwook & Mahoney, Joseph T., 2008. "A Strategic Theory of the Firm as a Nexus of Incomplete Contracts: A Property Rights Approach," Working Papers 08-0108, University of Illinois at Urbana-Champaign, College of Business.
    11. Matthew W. McCarter & Shirli Kopelman & Thomas A. Turk & Candace E. Ybarra, 2012. "Too Many Cooks Spoil the Broth: How the tragedy of the anticommons emerges in organizations," Working Papers 12-14, Chapman University, Economic Science Institute.
    12. Pitelis, Christos & Teece, David, 2009. "The (new) nature and essence of the firm," MPRA Paper 24317, University Library of Munich, Germany.
    13. Michel Renault & Yvan Renou, 2007. "Processus d'individuation, éthique et pragmatisme. A la recherche de fondements théoriques pour appréhender la firme partenariale," Post-Print halshs-00202148, HAL.

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