IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v39y2011i9p5630-5637.html
   My bibliography  Save this article

Institutional influences on business model choice by new ventures in the microgenerated energy industry

Author

Listed:
  • Provance, Mike
  • Donnelly, Richard G.
  • Carayannis, Elias G.

Abstract

Business model choice plays an important source of competitive advantage for new ventures in the microgeneration sector. Yet, existing literature focuses on strategic management of internal resources as the constraints in this choice process. In the energy sector, external factors may be at least as influential in shaping these business models. This paper examines the roles of politico-institutional and socio-institutional dynamics in the choice of business models for microgeneration ventures. Business models have traditionally been viewed as constructions of the internal values, strategies, and resources of organizations. But, this perspective overlooks the role that external forces have on these models, particularly in more highly institutionalized contexts like microgeneration. When these factors are introduced into the existing framework for business model choice, the business model based less on firm decision-making and more about variables that exist within national innovation systems and political structure, local socio-technological conditions, and cognitive abilities of the entrepreneur and corresponding stakeholders.

Suggested Citation

  • Provance, Mike & Donnelly, Richard G. & Carayannis, Elias G., 2011. "Institutional influences on business model choice by new ventures in the microgenerated energy industry," Energy Policy, Elsevier, vol. 39(9), pages 5630-5637, September.
    • Handle: RePEc:eee:enepol:v:39:y:2011:i:9:p:5630-5637
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421511003144
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Doganova, Liliana & Eyquem-Renault, Marie, 2009. "What do business models do?: Innovation devices in technology entrepreneurship," Research Policy, Elsevier, vol. 38(10), pages 1559-1570, December.
    2. Van der Veen, Reinier A.C. & De Vries, Laurens J., 2009. "The impact of microgeneration upon the Dutch balancing market," Energy Policy, Elsevier, vol. 37(7), pages 2788-2797, July.
    3. Israel M. Kirzner, 1997. "Entrepreneurial Discovery and the Competitive Market Process: An Austrian Approach," Journal of Economic Literature, American Economic Association, vol. 35(1), pages 60-85, March.
    4. Fernando F. Suárez & James M. Utterback, 1995. "Dominant designs and the survival of firms," Strategic Management Journal, Wiley Blackwell, vol. 16(6), pages 415-430.
    5. Sauter, Raphael & Watson, Jim, 2007. "Strategies for the deployment of micro-generation: Implications for social acceptance," Energy Policy, Elsevier, vol. 35(5), pages 2770-2779, May.
    6. Schilling, Melissa A. & Esmundo, Melissa, 2009. "Technology S-curves in renewable energy alternatives: Analysis and implications for industry and government," Energy Policy, Elsevier, vol. 37(5), pages 1767-1781, May.
    7. Henry Chesbrough & Richard S. Rosenbloom, 2002. "The role of the business model in capturing value from innovation: evidence from Xerox Corporation's technology spin-off companies," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 11(3), pages 529-555, June.
    8. Sine, Wesley D. & David, Robert J., 2003. "Environmental jolts, institutional change, and the creation of entrepreneurial opportunity in the US electric power industry," Research Policy, Elsevier, vol. 32(2), pages 185-207, February.
    9. Raphael Sauter, 2008. "Socio-technical implications of domestic microgeneration technologies in the UK electricity system," International Journal of Environmental Technology and Management, Inderscience Enterprises Ltd, vol. 9(2/3), pages 204-219.
    10. Kirzner, Israel M., 2008. "The Alert and Creative Entrepreneur: A Clarification," Working Paper Series 760, Research Institute of Industrial Economics.
    11. Watson, Jim, 2004. "Co-provision in sustainable energy systems: the case of micro-generation," Energy Policy, Elsevier, vol. 32(17), pages 1981-1990, November.
    12. Christoph Zott & Raphael Amit, 2007. "Business Model Design and the Performance of Entrepreneurial Firms," Organization Science, INFORMS, vol. 18(2), pages 181-199, April.
    13. Baker, Ted & Miner, Anne S. & Eesley, Dale T., 2003. "Improvising firms: bricolage, account giving and improvisational competencies in the founding process," Research Policy, Elsevier, vol. 32(2), pages 255-276, February.
    14. Vasudeva, Gurneeta, 2009. "How national institutions influence technology policies and firms' knowledge-building strategies: A study of fuel cell innovation across industrialized countries," Research Policy, Elsevier, vol. 38(8), pages 1248-1259, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Juntunen, Jouni K. & Hyysalo, Sampsa, 2015. "Renewable micro-generation of heat and electricity—Review on common and missing socio-technical configurations," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 857-870.
    2. Houda Elmustapha & Thomas Hoppe, 2020. "Challenges and Opportunities of Business Models in Sustainable Transitions: Evidence from Solar Energy Niche Development in Lebanon," Energies, MDPI, vol. 13(3), pages 1-18, February.
    3. Wirth, Steffen, 2014. "Communities matter: Institutional preconditions for community renewable energy," Energy Policy, Elsevier, vol. 70(C), pages 236-246.
    4. Valve, Helena & Lazarevic, David & Humalisto, Niko, 2021. "When the circular economy diverges: The co-evolution of biogas business models and material circuits in Finland," Ecological Economics, Elsevier, vol. 185(C).
    5. Johannes Giehl & Hayri Göcke & Benjamin Grosse & Johannes Kochems & Joachim Müller-Kirchenbauer, 2020. "Survey and Classification of Business Models for the Energy Transformation," Energies, MDPI, vol. 13(11), pages 1-17, June.
    6. F.G. Reis, Inês & Gonçalves, Ivo & A.R. Lopes, Marta & Henggeler Antunes, Carlos, 2021. "Business models for energy communities: A review of key issues and trends," Renewable and Sustainable Energy Reviews, Elsevier, vol. 144(C).
    7. Ahlgren Ode, Kajsa & Lagerstedt Wadin, Jessica, 2019. "Business model translation—The case of spreading a business model for solar energy," Renewable Energy, Elsevier, vol. 133(C), pages 23-31.
    8. Thomas Sachs & Anna Gründler & Milos Rusic & Gilbert Fridgen, 2019. "Framing Microgrid Design from a Business and Information Systems Engineering Perspective," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 61(6), pages 729-744, December.
    9. Maria Bastida & Ana Olveira & Miguel Ángel Vázquez Taín, 2023. "Are cooperatives gender sensitive? A confirmatory and predictive analysis of women's collective entrepreneurship," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(4), pages 1035-1059, December.
    10. Holzmann, Patrick & Breitenecker, Robert J. & Schwarz, Erich J. & Gregori, Patrick, 2020. "Business model design for novel technologies in nascent industries: An investigation of 3D printing service providers," Technological Forecasting and Social Change, Elsevier, vol. 159(C).
    11. Simon Wright & Mark Frost & Alfred Wong & Kevin A. Parton, 2022. "Australian Renewable-Energy Microgrids: A Humble Past, a Turbulent Present, a Propitious Future," Sustainability, MDPI, vol. 14(5), pages 1-19, February.
    12. Brocks, Annette & Nyangon, Joseph & Taminiau, Job, 2016. "Utility 2.0: A multi-dimensional review of New York’s Reforming the Energy Vision (REV) and Great Britain’s RIIO utility business models," MPRA Paper 91489, University Library of Munich, Germany, revised 30 Sep 2016.
    13. Gabriel, Cle-Anne & Kirkwood, Jodyanne, 2016. "Business models for model businesses: Lessons from renewable energy entrepreneurs in developing countries," Energy Policy, Elsevier, vol. 95(C), pages 336-349.
    14. Stefanie Steinhauser, 2019. "Network-Based Business Models, the Institutional Environment, and the Diffusion of Digital Innovations: Case Studies of Telemedicine Networks in Germany," Schmalenbach Business Review, Springer;Schmalenbach-Gesellschaft, vol. 71(3), pages 343-383, August.

    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. Jones, Raymond J. & Barnir, Anat, 2019. "Properties of opportunity creation and discovery: Comparing variation in contexts of innovativeness," Technovation, Elsevier, vol. 79(C), pages 1-10.
    2. Xinya You, 2022. "Applying design thinking for business model innovation," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-25, December.
    3. Clinton, Eric & McAdam, Maura & Gamble, Jordan Robert, 2018. "Transgenerational entrepreneurial family firms: An examination of the business model construct," Journal of Business Research, Elsevier, vol. 90(C), pages 269-285.
    4. Belussi, Fiorenza & Orsi, Luigi & Savarese, Maria, 2019. "Mapping Business Model Research: A Document Bibliometric Analysis," Scandinavian Journal of Management, Elsevier, vol. 35(3).
    5. Nigel Roome & Céline Louche, 2016. "Journeying Toward Business Models for Sustainability: A Conceptual Model Found Inside the Black Box of Organisational Transformation," Post-Print hal-01183743, HAL.
    6. Sarel Gronum & John Steen & Martie-Louise Verreynne, 2016. "Business model design and innovation: Unlocking the performance benefits of innovation," Australian Journal of Management, Australian School of Business, vol. 41(3), pages 585-605, August.
    7. Hanna Rydehell, 2019. "Stakeholder Roles In Business Model Development In New Technology-Based Firms," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 24(04), pages 1-38, May.
    8. Bouwman, Harry & de Reuver, Mark & Nikou, Shahrokh, 2017. "The impact of Digitalization on Business Models: How IT Artefacts, Social Media, and Big Data Force Firms to Innovate Their Business Model," 14th ITS Asia-Pacific Regional Conference, Kyoto 2017: Mapping ICT into Transformation for the Next Information Society 168475, International Telecommunications Society (ITS).
    9. Göran Roos, 2014. "Business Model Innovation to Create and Capture Resource Value in Future Circular Material Chains," Resources, MDPI, vol. 3(1), pages 1-27, March.
    10. Bouncken, Ricarda B. & Fredrich, Viktor, 2016. "Good fences make good neighbors? Directions and safeguards in alliances on business model innovation," Journal of Business Research, Elsevier, vol. 69(11), pages 5196-5202.
    11. Linda Edelman & Helena Yli–Renko, 2010. "The Impact of Environment and Entrepreneurial Perceptions on Venture-Creation Efforts: Bridging the Discovery and Creation Views of Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 34(5), pages 833-856, September.
    12. Daniela Andreini & Cristina Bettinelli & Nicolai J. Foss & Marco Mismetti, 2022. "Business model innovation: a review of the process-based literature," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 26(4), pages 1089-1121, December.
    13. Dalia Streimikiene & Tomas Balezentis & Ilona Alisauskaite-Seskiene & Gintare Stankuniene & Zaneta Simanaviciene, 2019. "A Review of Willingness to Pay Studies for Climate Change Mitigation in the Energy Sector," Energies, MDPI, vol. 12(8), pages 1-38, April.
    14. Albøge, Kristian Groth & Andersen, Jesper Gyldenlev & Lueg, Rainer & Nielsen, Kristian Posselt, 2015. "A framework for business model development in technology-driven start-ups," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 69(1), pages 67-80.
    15. Raphaël Maucuer & Alexandre Renaud, 2019. "Business Model Research: A Bibliometric Analysis of Origins and Trends," Post-Print hal-01918188, HAL.
    16. Trabucchi, Daniel & Talenti, Luca & Buganza, Tommaso, 2019. "How do Big Bang Disruptors look like? A Business Model perspective," Technological Forecasting and Social Change, Elsevier, vol. 141(C), pages 330-340.
    17. Budler, Marko & Župič, Ivan & Trkman, Peter, 2021. "The development of business model research: A bibliometric review," Journal of Business Research, Elsevier, vol. 135(C), pages 480-495.
    18. Juntunen, Jouni K. & Hyysalo, Sampsa, 2015. "Renewable micro-generation of heat and electricity—Review on common and missing socio-technical configurations," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 857-870.
    19. Oschlies, Melanie K. & Loock, Moritz, 2015. "Performance Consequences of Fit between Financials and Strategy Descriptions in the Renewable Energy Industry: A contingent view on the business model consistency heuristic," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 69(3), pages 302-321.
    20. Cinzia Battistella & Gianluca Murgia & Fabio Nonino, 2021. "Free-driven web-based business models," Electronic Commerce Research, Springer, vol. 21(2), pages 445-486, June.

    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:eee:enepol:v:39:y:2011:i:9:p:5630-5637. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    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.