**3.2 Knowledge and power relationships in petroleum supply chains**

The oil districts are characterized by a large number of companies that are not always distinct in their activities: in fact, by examining the companies in terms of the services offered and the related inclusion in the various stages of production, many cases of juxtaposition can be distinguished [53]. Companies operating in this "parallel" situation are direct competitors, able to provide the same types of services within the same phase of the production chain. This situation contrasts with the classic district, where companies have complementary knowledge and specialization and operate in sequence along the production chain, creating an entire supply chain [11]. In a sequential structure, every single company is essential for the production of

**119**

**Figure 6**.

**Figure 7.**

*Petroleum supply chain.*

**Figure 6.**

*The Management, Sharing and Transfer of Knowledge in the Oil Districts - The Case Study…*

the entire district, and the relationships developed between the component companies take on a collaborative and non-competitive character [11], as can be seen in

ate in parallel—are essentially trying to exploit a single scarce resource [55].

**4. The case study of an Italian oil district: features and data analysis**

Eni SpA is an integrated multinational energy company, founded in Italy in 1926 [56]. Its activities in the petroleum sector cover the entire production chain, from

Since the oil districts are structured around energy systems, very different from the manufacturing districts, their shape is less linear [11], as can be seen in **Figure 7**. The main productive activities in these districts are exploration and drilling, as well as related activities, such as maintenance, transportation and refining [54]. Looking at these phases, we see that the various similar activities are conducted simultaneously, not only in series. Therefore, the production chain is not a strictly linear structure; it appears, instead, that the output of a company can provide the input for a series of companies, all operating in parallel in the next phase. In a single district, therefore, we find the presence of a mixed production system, in which sequential and parallel structures coexist at the same time. A direct consequence of this is that the supply chain of the hub-and-spoke oil districts is not based exclusively on mechanisms of fragmentation and cooperation, because their asymmetric form generates power structures and disparities in relationships [55]. Instead, the district structure will be dominated by one or more large vertically integrated companies, surrounded by a large number of supplier companies, with relations between large and small businesses established on a contractual basis [55]. These relationships will all be influenced by "power games" within the district, including knowledge management relationship. Empirical evidence suggests that voluntary cooperation mechanisms are quite rare in oil districts, since all companies—many of which oper-

*DOI: http://dx.doi.org/10.5772/intechopen.86298*

*Parallel and sequential production activity.*

*The Management, Sharing and Transfer of Knowledge in the Oil Districts - The Case Study… DOI: http://dx.doi.org/10.5772/intechopen.86298*

#### **Figure 6.**

*Current Issues in Knowledge Management*

different "BA" present in the single companies [52]. The "BA" is characterized by three typical physical, mental and virtual components: the reality of the industrial district contains all three of these characteristics. In fact, it is physical, because it is geographically localized; therefore all the actors, who are part of it, live and work in the same place [52]; it is mental, because the main element of the industrial district is the sharing of everything related to the system—the history, the experiences and the attitudes—typical of this specific reality; and finally, it is virtual, a feature that is not yet distinctive of the ID, but which can be considered feasible in the not too distant future. Ultimately, the context of the industrial district, seen as an economic business reality in itself, represents a true "BA", and it is possible to read the district

a.**Originating BA**: the actors of the district share the history, the traditions and the origins of the district through a socialization of tacit knowledge [52].

b.**Interacting BA**: the neighborhood is the place where the actors live, collaborate

c.**Cyber BA**: in the district context, the leading companies connect in the cognitive networks in which they can combine their explicit knowledge [52].

d.**Exercising BA**: the growth and development of new tacit knowledge by district

The oil districts are characterized by a large number of companies that are not always distinct in their activities: in fact, by examining the companies in terms of the services offered and the related inclusion in the various stages of production, many cases of juxtaposition can be distinguished [53]. Companies operating in this "parallel" situation are direct competitors, able to provide the same types of services within the same phase of the production chain. This situation contrasts with the classic district, where companies have complementary knowledge and specialization and operate in sequence along the production chain, creating an entire supply chain [11]. In a sequential structure, every single company is essential for the production of

by applying the logical categories previously introduced:

actors is consequent to the previous categories [52].

**3.2 Knowledge and power relationships in petroleum supply chains**

and interact [52].

**Figure 5.**

*The four characteristics of the "BA".*

**118**

*Parallel and sequential production activity.*

**Figure 7.** *Petroleum supply chain.*

the entire district, and the relationships developed between the component companies take on a collaborative and non-competitive character [11], as can be seen in **Figure 6**.

Since the oil districts are structured around energy systems, very different from the manufacturing districts, their shape is less linear [11], as can be seen in **Figure 7**.

The main productive activities in these districts are exploration and drilling, as well as related activities, such as maintenance, transportation and refining [54]. Looking at these phases, we see that the various similar activities are conducted simultaneously, not only in series. Therefore, the production chain is not a strictly linear structure; it appears, instead, that the output of a company can provide the input for a series of companies, all operating in parallel in the next phase. In a single district, therefore, we find the presence of a mixed production system, in which sequential and parallel structures coexist at the same time. A direct consequence of this is that the supply chain of the hub-and-spoke oil districts is not based exclusively on mechanisms of fragmentation and cooperation, because their asymmetric form generates power structures and disparities in relationships [55]. Instead, the district structure will be dominated by one or more large vertically integrated companies, surrounded by a large number of supplier companies, with relations between large and small businesses established on a contractual basis [55]. These relationships will all be influenced by "power games" within the district, including knowledge management relationship. Empirical evidence suggests that voluntary cooperation mechanisms are quite rare in oil districts, since all companies—many of which operate in parallel—are essentially trying to exploit a single scarce resource [55].
