Organisational learning, strategic rigidity and technology adoption: Implications for electric utilities and renewable energy firms

Abstract

This paper examines the implications of strategic rigidness for technology adoption behaviours among electric utilities. Such behaviours lead to heterogeneity in firm performance and consequently affect the electric utility industry. The paper's central aim is to identify and describe the implications of strategic rigidness for a utility firm's decision making in adopting newer renewable energy technologies. The findings indicate that not all utility firms are keen to adopt these new technologies, as these firms have traditionally been operating efficiently with a more conventional and mature technological arrangement that has become embedded in the organisational routine. Case studies of Iberdrola S.A. and Enel S.p.A. as major electric utilities are detailed to document mergers and acquisitions and technology adoption decisions. The results indicate that technology adoption behaviours vary widely across utility firms with different organisational learning processes and core capabilities.

Sustainable energy systems in the making: A study on business model adaptation in incumbent utilities

“…This leading role of wind generation was also found in previous studies analyzing renewable energy investments (Eyraud, Clements, & Wane, 2013;Masini & Menichetti, 2013;Mazzucato & Semieniuk, 2018). Masini and Menichetti (2013) Wind generation activities contribute to decarbonizing the electricity industry through a low risk (Mazzucato & Semieniuk, 2018), mature technology (Masini & Menichetti, 2013), initially with significant policy support (Eyraud et al, 2013), while allowing utilities to use some of their existing capabilities and experience (Nisar, Ruiz, & Palacios, 2013). Similar to traditional utility activities associated with fossil-fuel-based electricity generation, or transmission and distribution network assets (Goldthau & Sovacool, 2012), wind generation is capital-intensive (Blanco, 2009;Eyraud et al, 2013).…”

The Viability of Energy Transition Companies

“…This is expected to create core rigidness as it is perceived as a liability even though its position's the organization for increased competitive advantage, especially when firms are exposed to environmental and societal change. Therefore, in a bid to describe the implications of strategic rigidness in the energy sector, (Nisar et al, 2013) suggests in their findings that not all utility firms are keen to embrace new technologies, as firms have traditionally been operating efficiently with a more standardized and familiar technology arrangement, which has, however, become embedded in the organizational activities. In this regard, most of the firms present in the S&P 500, Dow Jones, Nasdaq, and FTSE 100 would probably not be there in 20years.…”

The challenging paradigm of interrelated energy systems towards a more sustainable future

“…: ownership, connected consumers, unbundling type, technical characteristics, operational expenditures, capital expenditures, network length, electricity distributed, etc.) [117], [118], as well as market factors (i.e. sector structure, sector liberalisation, regulatory method, innovation policies, etc.)…”