Do the strategic decisions of multinational energy companies differ in divergent market contexts?: An exploratory study
2016 (English)In: Energy Research & Social Science, ISSN 2214-6296, E-ISSN 2214-6326, Vol. 11, 9-18 p.Article in journal, News item (Refereed) Published
In the European energy industry, different countries’ national institutional frameworks have evolved divergently in response to increasing concerns about environmental issues. This paper explores the influence of these divergent national institutional frameworks on the strategic behavior of multinational company (MNC) subsidiaries. Differences in MNC subsidiaries’ strategic decisions in different countries, regardless of common capabilities and strategies, illustrate the importance of this influence. The paper focuses on the strategic decisions that determine which energy technology MNCs choose to acquire or invest in. MNCs are the predominant force in the European energy industry, and our understanding of their strategic decisions regarding choice of technology is an essential step in achieving a low-carbon energy industry. Our analysis is based on a longitudinal case study of Vattenfall, a Swedish multinational energy company. Findings confirm that even in the energy industry—a capital-intensive, national, and institution-based industry—MNCs follow their core global strategy to such an extent that it may prevail over local institutional considerations. Nevertheless, as European energy markets become deregulated and renewable energy matures, local institutions are likely to play a more dominant role, and MNCs will increasingly need to comply with local institutions’ guidelines. The paper offers recommendations for policymakers and several managerial implications.
Place, publisher, year, edition, pages
Elsevier, 2016. Vol. 11, 9-18 p.
Multinational energy companies, Strategic responses, Institutions, Climate concerns
Research subject Energy Technology
IdentifiersURN: urn:nbn:se:kth:diva-177457DOI: 10.1016/j.erss.2015.08.009ISI: 000379430400002ScopusID: 2-s2.0-84941921028OAI: oai:DiVA.org:kth-177457DiVA: diva2:872870
QC 201512022015-11-202015-11-202016-08-12Bibliographically approved