IDEAS home Printed from https://ideas.repec.org/a/eee/respol/v49y2020i10s0048733320301335.html
   My bibliography  Save this article

The strategic responses of start-ups to regulatory constraints in the nascent drone market

Author

Listed:
  • Andersen, Kristina Vaarst
  • Frederiksen, Marianne Harbo
  • Knudsen, Mette Præst
  • Krabbe, Anders Dahl

Abstract

Some start-ups treat regulatory constraints as exogenous and beyond their control, while other start-ups treat regulatory constraints as endogenous and possible to influence. However, thus far, no explanation has been offered for why start-ups differ in their responses to regulatory constraints. Based on 49 interviews with start-ups and other industry actors this paper examines start-ups’ responses to regulatory constraints in the market for drone applications. We find that variation in start-ups’ responses is instigated by start-ups’ temporal orientation. Start-ups pursuing applications targeted at present markets or future potential markets treat regulation as exogenous. In contrast, start-ups that pursue market applications bridging current and future potential markets are more likely to treat regulation as endogenous.

Suggested Citation

  • Andersen, Kristina Vaarst & Frederiksen, Marianne Harbo & Knudsen, Mette Præst & Krabbe, Anders Dahl, 2020. "The strategic responses of start-ups to regulatory constraints in the nascent drone market," Research Policy, Elsevier, vol. 49(10).
    • Handle: RePEc:eee:respol:v:49:y:2020:i:10:s0048733320301335
    DOI: 10.1016/j.respol.2020.104055
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0048733320301335
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.respol.2020.104055?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
    ---><---

    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. Aversa, Paolo & Guillotin, Olivier, 2018. "Firm technological responses to regulatory changes: A longitudinal study in the Le Mans Prototype racing," Research Policy, Elsevier, vol. 47(9), pages 1655-1673.
    2. David M. Waguespack & Olav Sorenson, 2011. "The Ratings Game: Asymmetry in Classification," Organization Science, INFORMS, vol. 22(3), pages 541-553, June.
    3. Reinstaller, Andreas, 2005. "Policy entrepreneurship in the co-evolution of institutions, preferences, and technology: Comparing the diffusion of totally chlorine free pulp bleaching technologies in the US and Sweden," Research Policy, Elsevier, vol. 34(9), pages 1366-1384, November.
    4. Alessandro Marino & Paolo Aversa & Luiz Mesquita & Jaideep Anand, 2015. "Driving Performance via Exploration in Changing Environments: Evidence from Formula One Racing," Organization Science, INFORMS, vol. 26(4), pages 1079-1100, August.
    5. Rao, Hayagreeva, 2004. "Institutional activism in the early American automobile industry," Journal of Business Venturing, Elsevier, vol. 19(3), pages 359-384, May.
    6. Anastasios Plioutsias & Nektarios Karanikas & Maria Mikela Chatzimihailidou, 2018. "Hazard Analysis and Safety Requirements for Small Drone Operations: To What Extent Do Popular Drones Embed Safety?," Risk Analysis, John Wiley & Sons, vol. 38(3), pages 562-584, March.
    7. Finch, John & Geiger, Susi & Reid, Emma, 2017. "Captured by technology? How material agency sustains interaction between regulators and industry actors," Research Policy, Elsevier, vol. 46(1), pages 160-170.
    8. John F. Mahon & Edwin A. Murray, 1981. "Strategic planning for regulated companies," Strategic Management Journal, Wiley Blackwell, vol. 2(3), pages 251-262, July.
    9. Geels, Frank W., 2002. "Technological transitions as evolutionary reconfiguration processes: a multi-level perspective and a case-study," Research Policy, Elsevier, vol. 31(8-9), pages 1257-1274, December.
    10. Blind, Knut, 2012. "The influence of regulations on innovation: A quantitative assessment for OECD countries," Research Policy, Elsevier, vol. 41(2), pages 391-400.
    11. Kannan Ramaswamy & Anisya S. Thomas & Robert J. Litschert, 1994. "Organizational performance in a regulated environment: The role of strategic orientation," Strategic Management Journal, Wiley Blackwell, vol. 15(1), pages 63-74, January.
    12. Ken G. Smith & Curtis M. Grimm, 1987. "Environmental variation, strategic change and firm performance: A study of railroad deregulation," Strategic Management Journal, Wiley Blackwell, vol. 8(4), pages 363-376, July.
    13. Geels, Frank W., 2004. "From sectoral systems of innovation to socio-technical systems: Insights about dynamics and change from sociology and institutional theory," Research Policy, Elsevier, vol. 33(6-7), pages 897-920, September.
    14. Zhang, Wei & White, Steven, 2016. "Overcoming the liability of newness: Entrepreneurial action and the emergence of China's private solar photovoltaic firms," Research Policy, Elsevier, vol. 45(3), pages 604-617.
    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. Henderson, Isaac Levi, 2022. "Aviation safety regulations for unmanned aircraft operations: Perspectives from users," Transport Policy, Elsevier, vol. 125(C), pages 192-206.
    2. Audretsch, David & Colombelli, Alessandra & Grilli, Luca & Minola, Tommaso & Rasmussen, Einar, 2020. "Innovative start-ups and policy initiatives," Research Policy, Elsevier, vol. 49(10).
    3. Frederiksen, Marianne Harbo & Wolf, Patricia & Klotz, Ute, 2024. "Citizen visions of drone uses and impacts in 2057: Far-future insights for policy decision-makers," Technological Forecasting and Social Change, Elsevier, vol. 204(C).
    4. Soltanzadeh, Javad & Blind, Knut & Elyasi, Mehdi, 2023. "Exploring how regulators face platform business issues in the lifecycle stages: Evidence of iranian ride-hailing platform business," Telecommunications Policy, Elsevier, vol. 47(7).
    5. Zhu, Bo & Liang, Chao & Mirza, Nawazish & Umar, Muhammad, 2023. "What drives gearing in early-stage firms? Evidence from blue economy startups," Journal of Business Research, Elsevier, vol. 161(C).

    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. Aversa, Paolo & Guillotin, Olivier, 2018. "Firm technological responses to regulatory changes: A longitudinal study in the Le Mans Prototype racing," Research Policy, Elsevier, vol. 47(9), pages 1655-1673.
    2. Florez Ramos, Esmeralda & Blind, Knut, 2020. "Data portability effects on data-driven innovation of online platforms: Analyzing Spotify," Telecommunications Policy, Elsevier, vol. 44(9).
    3. Binz, Christian & Diaz Anadon, Laura, 2016. "Transplanting clean-tech paths from elsewhere: The emergence of the Chinese solar PV industry," Papers in Innovation Studies 2016/29, Lund University, CIRCLE - Centre for Innovation Research.
    4. Jonas Heiberg & Christian Binz & Bernhard Truffer, 2020. "The Geography of Technology Legitimation. How multi-scalar legitimation processes matter for path creation in emerging industries," Papers in Evolutionary Economic Geography (PEEG) 2034, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Aug 2020.
    5. Weigelt, Carmen & Lu, Shaohua & Verhaal, J. Cameron, 2021. "Blinded by the sun: The role of prosumers as niche actors in incumbent firms’ adoption of solar power during sustainability transitions," Research Policy, Elsevier, vol. 50(9).
    6. Carolina Rojas-Córdova & Amanda J. Williamson & Julio A. Pertuze & Gustavo Calvo, 2023. "Why one strategy does not fit all: a systematic review on exploration–exploitation in different organizational archetypes," Review of Managerial Science, Springer, vol. 17(7), pages 2251-2295, October.
    7. Francesco Lamperti & Giovanni Dosi & Mauro Napoletano & Andrea Roventini & Alessandro Sapio, 2018. "And then he wasn't a she : Climate change and green transitions in an agent-based integrated assessment model," Working Papers hal-03443464, HAL.
    8. Pradeep Racherla & Munir Mandviwalla, 2013. "Moving from Access to Use of the Information Infrastructure: A Multilevel Sociotechnical Framework," Information Systems Research, INFORMS, vol. 24(3), pages 709-730, September.
    9. Barbanente, Angela & Grassini, Laura, 2022. "Fostering transitions in landscape policies: A multi-level perspective," Land Use Policy, Elsevier, vol. 112(C).
    10. Pettus, Michael L. & Kor, Yasemin Y. & Mahoney, Joseph T., 2007. "A Theory of Change in Turbulent Environments: The Sequencing of Dynamic Capabilities Following Industry Deregulation," Working Papers 07-0100, University of Illinois at Urbana-Champaign, College of Business.
    11. Catia Milena Lopes & Annibal José Scavarda & Mauricio Nunes Macedo de Carvalho & André Luis Korzenowski, 2018. "The Business Model and Innovation Analyses: The Sustainable Transition Obstacles and Drivers for the Hospital Supply Chains," Resources, MDPI, vol. 8(1), pages 1-17, December.
    12. Funk, Jeffery, 2009. "Components, systems and discontinuities: The case of magnetic recording and playback equipment," Research Policy, Elsevier, vol. 38(7), pages 1192-1202, September.
    13. Brem, Alexander & Radziwon, Agnieszka, 2017. "Efficient Triple Helix collaboration fostering local niche innovation projects – A case from Denmark," Technological Forecasting and Social Change, Elsevier, vol. 123(C), pages 130-141.
    14. Vincent-Paul Sanon & Raymond Ouedraogo & Patrice Toé & Hamid El Bilali & Erwin Lautsch & Stefan Vogel & Andreas H. Melcher, 2021. "Socio-Economic Perspectives of Transition in Inland Fisheries and Fish Farming in a Least Developed Country," Sustainability, MDPI, vol. 13(5), pages 1-34, March.
    15. Hopkins, Debbie & Stephenson, Janet, 2014. "Generation Y mobilities through the lens of energy cultures: a preliminary exploration of mobility cultures," Journal of Transport Geography, Elsevier, vol. 38(C), pages 88-91.
    16. Geels, Frank W., 2006. "The hygienic transition from cesspools to sewer systems (1840-1930): The dynamics of regime transformation," Research Policy, Elsevier, vol. 35(7), pages 1069-1082, September.
    17. André Sorensen & Anna-Katharina Brenner, 2021. "Cities, Urban Property Systems, and Sustainability Transitions: Contested Processes of Institutional Change and the Regulation of Urban Property Development," Sustainability, MDPI, vol. 13(15), pages 1-19, July.
    18. Jain, Sanjay, 2020. "Fumbling to the future? Socio-technical regime change in the recorded music industry," Technological Forecasting and Social Change, Elsevier, vol. 158(C).
    19. Parker, Abdul Rauf, 2001. "Strategic choices in a dynamically changing deregulatory environment," Journal of Business Research, Elsevier, vol. 51(3), pages 201-208, March.
    20. Geels, Frank W., 2012. "A socio-technical analysis of low-carbon transitions: introducing the multi-level perspective into transport studies," Journal of Transport Geography, Elsevier, vol. 24(C), pages 471-482.

    More about this item

    Keywords

    M13 new firms; Start-ups; l22 firm organization and market structure; l52 industrial policy; Sectorial Planning Methods;
    All these keywords.

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

    Statistics

    Access and download statistics

    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:respol:v:49:y:2020:i:10:s0048733320301335. 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/respol .

    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.