IDEAS home Printed from https://ideas.repec.org/a/sae/envira/v54y2022i4p676-692.html
   My bibliography  Save this article

Skill-relatedness and employment growth of firms in times of prosperity and crisis in an oil-dependent region

Author

Listed:
  • John-Erik Rørheim

    (UiS Business School, 232212Stavanger University, Norway)

  • Ron Boschma

    (Department of Human Geography and Planning, Utrecht University, the Netherlands; UiS Business School, Stavanger University, Norway)

Abstract

Many studies have shed light on the positive side of relatedness, but little attention has yet been devoted to possible downsides of relatedness for firm performance in regions. We found in a case study of the oil-dependent Stavanger region in Norway that plants in industries that are skill-related to the dominant oil and gas industry showed lower employment growth than plants in other industries. This was the case both in the boom and the crisis periods, even when controlling for supply linkages to the oil and gas sector. However, we also found that plants skill-related to the oil and gas industry increased their relative performance during the crisis to some degree, but they did not outperform the non-skill-related plants during the crisis.

Suggested Citation

  • John-Erik Rørheim & Ron Boschma, 2022. "Skill-relatedness and employment growth of firms in times of prosperity and crisis in an oil-dependent region," Environment and Planning A, , vol. 54(4), pages 676-692, June.
    • Handle: RePEc:sae:envira:v:54:y:2022:i:4:p:676-692
    DOI: 10.1177/0308518X211066102
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0308518X211066102
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0308518X211066102?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Combes, Pierre-Philippe & Duranton, Gilles, 2006. "Labour pooling, labour poaching, and spatial clustering," Regional Science and Urban Economics, Elsevier, vol. 36(1), pages 1-28, January.
    2. Joseph Marchand & Jeremy Weber, 2018. "Local Labor Markets And Natural Resources: A Synthesis Of The Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 32(2), pages 469-490, April.
    3. J�rgen Essletzbichler, 2015. "Relatedness, Industrial Branching and Technological Cohesion in US Metropolitan Areas," Regional Studies, Taylor & Francis Journals, vol. 49(5), pages 752-766, May.
    4. Frank Neffke & Martin Henning & Ron Boschma, 2011. "How Do Regions Diversify over Time? Industry Relatedness and the Development of New Growth Paths in Regions," Economic Geography, Taylor & Francis Journals, vol. 87(3), pages 237-265, July.
    5. Ron Boschma & Ron Martin (ed.), 2010. "The Handbook of Evolutionary Economic Geography," Books, Edward Elgar Publishing, number 12864.
    6. Evans, David S, 1987. "The Relationship between Firm Growth, Size, and Age: Estimates for 100 Manufacturing Industries," Journal of Industrial Economics, Wiley Blackwell, vol. 35(4), pages 567-581, June.
    7. Rachata Muneepeerakul & José Lobo & Shade T Shutters & Andrés Goméz-Liévano & Murad R Qubbaj, 2013. "Urban Economies and Occupation Space: Can They Get “There” from “Here”?," PLOS ONE, Public Library of Science, vol. 8(9), pages 1-8, September.
    8. Ron Boschma & Rikard H. Eriksson & Urban Lindgren, 2014. "Labour Market Externalities and Regional Growth in Sweden: The Importance of Labour Mobility between Skill-Related Industries," Regional Studies, Taylor & Francis Journals, vol. 48(10), pages 1669-1690, October.
    9. Koen Frenken & Ron A. Boschma, 2007. "A theoretical framework for evolutionary economic geography: industrial dynamics and urban growth as a branching process," Journal of Economic Geography, Oxford University Press, vol. 7(5), pages 635-649, September.
    10. Coad, Alex, 2007. "Testing the principle of `growth of the fitter': The relationship between profits and firm growth," Structural Change and Economic Dynamics, Elsevier, vol. 18(3), pages 370-386, September.
    11. Carlsson, B & Stankiewicz, R, 1991. "On the Nature, Function and Composition of Technological Systems," Journal of Evolutionary Economics, Springer, vol. 1(2), pages 93-118, April.
    12. Ron Boschma, 2015. "Towards an Evolutionary Perspective on Regional Resilience," Regional Studies, Taylor & Francis Journals, vol. 49(5), pages 733-751, May.
    13. Duranton, Gilles & Puga, Diego, 2004. "Micro-foundations of urban agglomeration economies," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 48, pages 2063-2117, Elsevier.
    14. Mohn, Klaus & Misund, Bård, 2009. "Investment and uncertainty in the international oil and gas industry," Energy Economics, Elsevier, vol. 31(2), pages 240-248, March.
    15. Evans, David S, 1987. "Tests of Alternative Theories of Firm Growth," Journal of Political Economy, University of Chicago Press, vol. 95(4), pages 657-674, August.
    16. Rune Dahl Fitjar & Bram Timmermans, 2017. "Regional skill relatedness: towards a new measure of regional related diversification," European Planning Studies, Taylor & Francis Journals, vol. 25(3), pages 516-538, March.
    17. P. A. Geroski & José Mata & Pedro Portugal, 2010. "Founding conditions and the survival of new firms," Strategic Management Journal, Wiley Blackwell, vol. 31(5), pages 510-529, May.
    18. Rui Mano & Marola Castillo, 2015. "The Level of Productivity in Traded and Non-Traded Sectors for a Large Panel of Countries," IMF Working Papers 2015/048, International Monetary Fund.
    19. Jacob Rubæk Holm & Christian Richter Østergaard & Thomas Roslyng Olesen, 2017. "Destruction And Reallocation Of Skills Following Large Company Closures," Journal of Regional Science, Wiley Blackwell, vol. 57(2), pages 245-265, March.
    20. Coniglio, Nicola D. & Vurchio, Davide & Cantore, Nicola & Clara, Michele, 2021. "On the evolution of comparative advantage: Path-dependent versus path-defying changes," Journal of International Economics, Elsevier, vol. 133(C).
    21. Erling Røed Larsen, 2006. "Escaping the Resource Curse and the Dutch Disease?," American Journal of Economics and Sociology, Wiley Blackwell, vol. 65(3), pages 605-640, July.
    22. Anthony J. Venables, 2016. "Using Natural Resources for Development: Why Has It Proven So Difficult?," Journal of Economic Perspectives, American Economic Association, vol. 30(1), pages 161-184, Winter.
    23. Ron Boschma, 2017. "Relatedness as driver of regional diversification: a research agenda," Regional Studies, Taylor & Francis Journals, vol. 51(3), pages 351-364, March.
    24. Jacob R. Holm & Christian R. Østergaard, 2020. "Regional Employment Growth, Shocks and Regional Industrial Resilience: A Quantitative Analysis of the Danish ICT Sector," Regional Studies, Taylor & Francis Journals, vol. 49(1), pages 95-112, July.
    25. C. A. Hidalgo & B. Klinger & A. -L. Barabasi & R. Hausmann, 2007. "The Product Space Conditions the Development of Nations," Papers 0708.2090, arXiv.org.
    26. Rune Dahl Fitjar & Bram Timmermans, 2019. "Relatedness and the Resource Curse: Is There a Liability of Relatedness?," Economic Geography, Taylor & Francis Journals, vol. 95(3), pages 231-255, May.
    27. Sam Tavassoli & Nunzia Carbonara, 2014. "The role of knowledge variety and intensity for regional innovation," Small Business Economics, Springer, vol. 43(2), pages 493-509, August.
    28. Jovanovic, Boyan, 1982. "Selection and the Evolution of Industry," Econometrica, Econometric Society, vol. 50(3), pages 649-670, May.
    29. Jing Xiao & Ron Boschma & Martin Andersson, 2018. "Resilience in the European Union: the effect of the 2008 crisis on the ability of regions in Europe to develop new industrial specializations," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(1), pages 15-47.
    30. David J. Teece & Richard Rumelt & Giovanni Dosi & Sidney Winter, 2000. "Understanding Corporate Coherence: Theory and Evidence," Chapters, in: Innovation, Organization and Economic Dynamics, chapter 9, pages 264-293, Edward Elgar Publishing.
    31. Holden, Steinar, 2013. "Avoiding the resource curse the case Norway," Energy Policy, Elsevier, vol. 63(C), pages 870-876.
    32. Ron Boschma, 2017. "Relatedness as driver behind regional diversification: a research agenda," Papers in Evolutionary Economic Geography (PEEG) 1702, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2017.
    33. Corden, W Max & Neary, J Peter, 1982. "Booming Sector and De-Industrialisation in a Small Open Economy," Economic Journal, Royal Economic Society, vol. 92(368), pages 825-848, December.
    34. David L. Rigby, 2015. "Technological Relatedness and Knowledge Space: Entry and Exit of US Cities from Patent Classes," Regional Studies, Taylor & Francis Journals, vol. 49(11), pages 1922-1937, November.
    35. Boschma, Ron A., 1999. "The rise of clusters of innovative industries in Belgium during the industrial epoch," Research Policy, Elsevier, vol. 28(8), pages 853-871, November.
    36. Rosenthal, Stuart S. & Strange, William C., 2004. "Evidence on the nature and sources of agglomeration economies," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 49, pages 2119-2171, Elsevier.
    37. Steen, Markus & Weaver, Tyson, 2017. "Incumbents’ diversification and cross-sectorial energy industry dynamics," Research Policy, Elsevier, vol. 46(6), pages 1071-1086.
    38. Sofia Wixe & Martin Andersson, 2017. "Which types of relatedness matter in regional growth? Industry, occupation and education," Regional Studies, Taylor & Francis Journals, vol. 51(4), pages 523-536, April.
    39. Sofia Wixe, 2015. "The Impact of Spatial Externalities: Skills, Education and Plant Productivity," Regional Studies, Taylor & Francis Journals, vol. 49(12), pages 2053-2069, December.
    40. Koen Frenken & Frank Van Oort & Thijs Verburg, 2007. "Related Variety, Unrelated Variety and Regional Economic Growth," Regional Studies, Taylor & Francis Journals, vol. 41(5), pages 685-697.
    41. Dieter F. Kogler & David L. Rigby & Isaac Tucker, 2013. "Mapping Knowledge Space and Technological Relatedness in US Cities," European Planning Studies, Taylor & Francis Journals, vol. 21(9), pages 1374-1391, September.
    42. Corden, W M, 1984. "Booming Sector and Dutch Disease Economics: Survey and Consolidation," Oxford Economic Papers, Oxford University Press, vol. 36(3), pages 359-380, November.
    43. Rikard H. Eriksson, 2011. "Localized Spillovers and Knowledge Flows: How Does Proximity Influence the Performance of Plants?," Economic Geography, Taylor & Francis Journals, vol. 87(2), pages 127-152, April.
    44. Kadri Kuusk & Mikhail Martynovich, 2021. "Dynamic Nature of Relatedness, or What Kind of Related Variety for Long‐Term Regional Growth," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 112(1), pages 81-96, February.
    45. Emelie Hane-Weijman & Rikard H. Eriksson & Martin Henning, 2018. "Returning to work: regional determinants of re-employment after major redundancies," Regional Studies, Taylor & Francis Journals, vol. 52(6), pages 768-780, June.
    46. Glenn Ellison & Edward L. Glaeser & William R. Kerr, 2010. "What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns," American Economic Review, American Economic Association, vol. 100(3), pages 1195-1213, June.
    47. Timothy Dunne & Mark J. Roberts & Larry Samuelson, 1989. "The Growth and Failure of U. S. Manufacturing Plants," The Quarterly Journal of Economics, Oxford University Press, vol. 104(4), pages 671-698.
    48. Dario Diodato & Anet B. R. Weterings, 2015. "The resilience of regional labour markets to economic shocks: Exploring the role of interactions among firms and workers," Journal of Economic Geography, Oxford University Press, vol. 15(4), pages 723-742.
    49. Havnes, Tarjei & Mogstad, Magne, 2011. "Money for nothing? Universal child care and maternal employment," Journal of Public Economics, Elsevier, vol. 95(11), pages 1455-1465.
    50. Geroski, P. A., 1995. "What do we know about entry?," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 421-440, December.
    51. Giulio Cainelli & Roberto Ganau & Marco Modica, 2019. "Does related variety affect regional resilience? New evidence from Italy," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 62(3), pages 657-680, June.
    52. Robert M. Grant, 2003. "Strategic planning in a turbulent environment: evidence from the oil majors," Strategic Management Journal, Wiley Blackwell, vol. 24(6), pages 491-517, June.
    53. David L. Rigby & Christoph Roesler & Dieter Kogler & Ron Boschma & Pierre-Alexandre Balland, 2019. "Do EU regions benefit from smart specialization?," Papers in Evolutionary Economic Geography (PEEG) 1931, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Nov 2019.
    54. Rikard H. Eriksson, 2011. "Localized Spillovers and Knowledge Flows: How Does Proximity Influence the Performance of Plants?," Economic Geography, Clark University, vol. 87(2), pages 127-152, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rune Dahl Fitjar & Bram Timmermans, 2019. "Relatedness and the Resource Curse: Is There a Liability of Relatedness?," Economic Geography, Taylor & Francis Journals, vol. 95(3), pages 231-255, May.
    2. Ron Boschma & Riccardo Cappelli & Anet Weterings, 2017. "Labour mobility, skill-relatedness and plant survival over the industry life cycle: Evidence from new Dutch plants," Papers in Evolutionary Economic Geography (PEEG) 1731, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Dec 2017.
    3. Tom Broekel & Rune Dahl Fitjar & Silje Haus-Reve, 2021. "The roles of diversity, complexity, and relatedness in regional development – What does the occupational perspective add?," Papers in Evolutionary Economic Geography (PEEG) 2135, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Nov 2021.
    4. Adam Whittle & Balázs Lengyel & Dieter F. Kogler, 2020. "Understanding Regional Branching Knowledge Diversification via Inventor Collaboration Networks," Papers in Evolutionary Economic Geography (PEEG) 2006, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Feb 2020.
    5. O’Clery, Neave & Kinsella, Stephen, 2022. "Modular structure in labour networks reveals skill basins," Research Policy, Elsevier, vol. 51(5).
    6. Mattie Landman & Sanna Ojanperä & Stephen Kinsella & Neave O’Clery, 2023. "The role of relatedness and strategic linkages between domestic and MNE sectors in regional branching and resilience," The Journal of Technology Transfer, Springer, vol. 48(2), pages 515-559, April.
    7. Timmermans, Bram & Fitjar, Rune Dahl, 2015. "Skill Relatedness in Norway by Bram Timmermans and Rune Dahl Fitjar," UiS Working Papers in Economics and Finance 2015/20, University of Stavanger.
    8. Duygu Buyukyazici & Leonardo Mazzoni & Massimo Riccaboni & Francesco Serti, 2022. "Workplace Skills as Regional Capabilities: Relatedness, Complexity and Industrial Diversification of Regions," Papers in Evolutionary Economic Geography (PEEG) 2210, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jun 2022.
    9. Emelie Hane-Weijman & Rikard H. Eriksson & David Rigby, 2020. "How do occupational relatedness and complexity condition employment dynamics in periods of growth and recession?," Papers in Evolutionary Economic Geography (PEEG) 2011, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Mar 2020.
    10. Simón Sánchez‐Moral & Mário Vale & Alfonso Arellano, 2022. "Skill‐Relatedness and Regional Economic Development in Spain during the International Crisis and the Post‐Crisis Period," Papers in Regional Science, Wiley Blackwell, vol. 101(3), pages 573-602, June.
    11. Matthias Firgo & Peter Mayerhofer, 2015. "Wissensintensive Unternehmensdienste, Wissens-Spillovers und regionales Wachstum. Teilprojekt 1: Wissens-Spillovers und regionale Entwicklung – Welche strukturpolitische Ausrichtung optimiert das Wach," WIFO Studies, WIFO, number 58342, Juni.
    12. Matthias Firgo & Peter Mayerhofer, 2015. "Wissens-Spillovers und regionale Entwicklung - welche strukturpolitische Ausrichtung optimiert des Wachstum?," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 144, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    13. Ron Boschma, 2021. "Designing Smart Specialization Policy: relatedness, unrelatedness, or what?," Papers in Evolutionary Economic Geography (PEEG) 2128, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Sep 2021.
    14. Gergő Tóth & Zoltán Elekes & Adam Whittle & Changjun Lee & Dieter F. Kogler, 2022. "Technology Network Structure Conditions the Economic Resilience of Regions," Economic Geography, Taylor & Francis Journals, vol. 98(4), pages 355-378, August.
    15. Zoltan Elekes & Anna Baranowska-Rataj & Rikard Eriksson, 2021. "Local access to skill-related high-income jobs facilitates career advancement for low-wage workers," Papers in Evolutionary Economic Geography (PEEG) 2136, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Nov 2021.
    16. Carlo Corradini & Enrico Vanino, 2022. "Path dependency, regional variety and the dynamics of new firm creation in rooted and pioneering industries [The knowledge spillover theory of entrepreneurship]," Journal of Economic Geography, Oxford University Press, vol. 22(3), pages 631-651.
    17. Quatraro, Francesco & Scandura, Alessandra, 2020. "Regional patterns of unrelated technological diversification: the role of academic inventors," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 202001, University of Turin.
    18. Jefferson Ricardo Bretas Galetti & Milene Simone Tessarin & Paulo Cesar Morceiro, 2021. "Skill relatedness, structural change and heterogeneous regions: evidence from a developing country," Papers in Regional Science, Wiley Blackwell, vol. 100(6), pages 1355-1376, December.
    19. Ron Boschma & Pierre-Alexandre Balland & Dieter Franz Kogler, 2015. "Relatedness and technological change in cities: the rise and fall of technological knowledge in US metropolitan areas from 1981 to 2010," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 24(1), pages 223-250.
    20. Sándor Juhász & Tom Broekel & Ron Boschma, 2021. "Explaining the dynamics of relatedness: The role of co‐location and complexity," Papers in Regional Science, Wiley Blackwell, vol. 100(1), pages 3-21, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:envira:v:54:y:2022:i:4:p:676-692. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.