Framework for the analysis of corporate political strategies pertinent to regulation: A relational perspective

Abstract

As energy sector firms belong to a regulated industry, their management faces significant challenges. In this kind of business environment it is very important to develop political strategies. Defining political strategy as the set of actions that firms plan and undertake in order to maximize economic returns from the political environment (Bonardi & Keim, 2005; Oliver & Holzinger, 2000; Schuler, 1996), and focusing specifically on actions whose aim is to influence the regulatory environment, the purpose of the broader research at issue in this article is to contribute to studies of the strategic management of firms that engage in alliances and networks in regulated industries. Its objective is to develop and apply an analytical framework with a relational perspective, involving a methodology, constructs and model, in the context of a multiple case study, whose results can be used to support the strategic management of firms with the characteristics cited. The aim of this article is to propose a preliminary framework based on a thorough bibliographical review, participant observation in a leading Brazilian electricity distributor, and validating interviews with experts and executives from the sector

Analysis of Factors that Interfere with the Regulatory Energy Process with Emphasis on the Energy Cloud

“…The degree of motivation of the whole team and the regulatory area in particular is another factor that can interfere during decision making for energy regulation (Bastos et al, 2011), and therefore, the CSF "5.3 Degree of team motivation" was listed. Therefore, performance measurement systems that map the competencies of the team as a whole, in addition to dynamic regulatory competencies to internalize the changes and demands of the legal and regulatory environment, can be incentive measures for the team (Bastos et al, 2011).…”

“…The degree of motivation of the whole team and the regulatory area in particular is another factor that can interfere during decision making for energy regulation (Bastos et al, 2011), and therefore, the CSF "5.3 Degree of team motivation" was listed. Therefore, performance measurement systems that map the competencies of the team as a whole, in addition to dynamic regulatory competencies to internalize the changes and demands of the legal and regulatory environment, can be incentive measures for the team (Bastos et al, 2011). There needs to be interest from all parties involved in this process, such as investors, regulatory bodies, and consumers, and also a verification agency to track and audit energy regulatory departments during this policy development process, also including public participation.…”

“…Companies (influence on the decisions of the regulatory agency)" (Bastos et al, 2011). The energy chain has a wide range of interactions with various stakeholders, such as businesses, consumers, authorities, and other organizations.…”

“…Ideological factors are also present in energy regulation. Here, three CSFs were listed, being: "7.1 Perception of sector agents regarding the ideological bias of regulation," "7.2 Rivalry between interest groups" and "7.3 Country's pluralism index" (Bastos et al, 2011). For example, a more liberal government's ideological orientation increases the likelihood of such policy adoption, ideological factors also predict governments that are more susceptible to adopt climate change policies (Armstrong, 2019).…”

Diagnosis of the Energy Regulatory Scenario with Emphasis on Smart Energy

“…Considering that the use of renewable energy would increase if policy incentives covered part of the cost of maintaining and installing renewable energy users (Okwanya et al, 2020), there is also the fact that funding for new infrastructure (such as electrical wiring and high-speed internet installation) is limited, and approvals can take years for new infrastructure projects (Saidani Neffati et al, 2021). In view of this, there are several factors that interfere with the development and evolution of SE, such as economic factors (Bento et al, 2020), social or socioeconomic factors (Okwanya et al, 2020), availability factors (Iwaro and Mwasha, 2010), institutional or market factors (Frate and Brannstrom, 2017), de infraestrutura regulatória (Jackson Inderberg et al, 2020), external and information factors (Armstrong, 2019), and also ideological factors (Pereira Bastos and de Macedo-Soares, 2011). For this technological integration due to the expansion of Distributed Energy Resources (DER) of renewable energy to happen equally among users, it is necessary to adapt and/or implement regulatory aspects that are different from conventional ones (Carvalho et al, 2021) and that include the aforementioned factors.…”