Week 8 Flashcards
What is a socio technical regime
there for certain societal function or service (energy, food, education etc.). It is the ‘platform’ where technical and social society meets
Bounded rationality in MLP
Should an incumbent adapt the niche
Landscape in MLP
can be important but is everything that is exogenous and not part of the regime or niches. It can accelerate or deaccelerate transitions. Niches and regimes are about functions, landscape is not necessarily about functions.
Behavioral theory of the firm
people of firms constantly argue and bargain for control over resources.
Satisficing
Resource based view
VRIN: value rare inimitable non substitutable –> sustained competitive advantage. More ambitious compared to BTOF, want to be the best.
Maximizing
Resource dependent theory
trading with other firms in order to acquire new resources. Firm rather strive to reduce uncertainty instead of getting a competitive advantage. Making a cartel, monopoly, merger and acquisition, creating a network by placing their people in certain groups/lobby groups. They try to control what is happening
Poldermodel: the habit to try to control the environment in formal and informal ways to your willing.
Reducing uncertainty
Institutional theory
the iron cage: neo institutional theory, companies need to comply to regulations, firms are stuck in certain routines, organizational structures, behavioral structures. Firms all want legitimacy (license to operate) the firm is perceived as socially desirable and valid. Firms are legitimacy maximizing agents –> CSR are only done because they want legitimacy (reputation is important).
Gaining legitimacy
Where does legitimacy come from?
- Formal rules: rules and regulations, standards (they have gone through regulations)
- Normative rules: social expectations (what others think of you)
- Culture cognitive rules: beliefs and bodies of knowledge (what you belief)
Organizational ecology
whatever you do as a large firm, you are screwed. You are unable to adapt as a firm as you suffer from structural inertia. The solution is to diversify.
- Generalist: diverse firms
- Specialist: specialized in one sector
You have a niche: with different resources where different firms are in. Each niche has a carrying capacity.
Only some firms become very big and giants = generalist.
But there still be specialists. When the environment changes these will vanish the first.
Only focused on selection and not adaptation.
Diversification, survival of the fittest
How do you know we are good enough?
Looking at competitors –> social aspiration level
Benchmark
Profit
Looking at past performance and set a aspiration level for the future.
Isomorphism (institutional theory)
imitating succesful firms
Absorptive capacity
ability to learn and to assimilate new information. The more you know the more you can learn.
Isolating mechanism (resource based value)
keeping the governance of the resource
M&A (Resource dependent theory)
Just buy or merge with the companies that are threatening
2 main debates
agency or structure: firm vs environment
adaptation or selection
Implications for transitions of the different theories
BTOF: firms are inert and are most focussed problem solving innovation
RBV: first innovate for a Comp Adv; diversification; little collaboration between firms
RDT: firms rather not innovate, keep the status quo, reinforce networks
IT: firms only innovate when they are told to, strong policy influence
OE: firms are inert, innovation comes from outside
Strategies in TMC
Incumbent
Defending incumbent system
Inhibiting niche system
Niche
Destabilizing incumbent system
Strengthening niche system
TMC boxes
Goal
Key elements and interactions
Strengths and vulnerabilities (uncertainties)
Strategies
Strategic resources (niche)
BTOF characteristics
Incumbents with high organizational slack are more likely to survive than those without
RBV characteristics
Incumbents whose resources have retained their value after a transition are more likely to survive than those whose resources have not.
Incumbernt with diverse resource base and strong dynamic capabilities are more likely to survive
RDT characteristics
Incumbents that are more powerful enough to control the pace of the transition are more likely to survive
Incumbents that are forced to follow in to a niche by other powerful incumbents are less likely to survive
IT characteristics
Incumbents that shape the institutions of a niche are more likely to survive
OE characteristics
Incumbent survival is mostly based on chance; generalists are more likely to survive
