Week 8

Question 1

What is a socio technical regime

Answer 1

there for certain societal function or service (energy, food, education etc.). It is the ‘platform’ where technical and social society meets

Question 2

Bounded rationality in MLP

Answer 2

Should an incumbent adapt the niche

Question 3

Landscape in MLP

Answer 3

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.

Question 4

Behavioral theory of the firm

Answer 4

people of firms constantly argue and bargain for control over resources.
Satisficing

Question 5

Resource based view

Answer 5

VRIN: value rare inimitable non substitutable –> sustained competitive advantage. More ambitious compared to BTOF, want to be the best.
Maximizing

Question 6

Resource dependent theory

Answer 6

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

Question 7

Institutional theory

Answer 7

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

Question 8

Where does legitimacy come from?

Answer 8

• 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)

Question 9

Organizational ecology

Answer 9

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

Question 10

How do you know we are good enough?

Answer 10

Looking at competitors –> social aspiration level
Benchmark
Profit
Looking at past performance and set a aspiration level for the future.

Question 11

Isomorphism (institutional theory)

Answer 11

imitating succesful firms

Question 12

Absorptive capacity

Answer 12

ability to learn and to assimilate new information. The more you know the more you can learn.

Question 13

Isolating mechanism (resource based value)

Answer 13

keeping the governance of the resource

Question 14

M&A (Resource dependent theory)

Answer 14

Just buy or merge with the companies that are threatening

Question 15

2 main debates

Answer 15

agency or structure: firm vs environment
adaptation or selection

Question 16

Implications for transitions of the different theories

Answer 16

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

Question 17

Strategies in TMC

Answer 17

Incumbent
Defending incumbent system
Inhibiting niche system
Niche
Destabilizing incumbent system
Strengthening niche system

Question 18

TMC boxes

Answer 18

Goal
Key elements and interactions
Strengths and vulnerabilities (uncertainties)
Strategies
Strategic resources (niche)

Question 19

BTOF characteristics

Answer 19

Incumbents with high organizational slack are more likely to survive than those without

Question 20

RBV characteristics

Answer 20

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

Question 21

RDT characteristics

Answer 21

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

Question 22

IT characteristics

Answer 22

Incumbents that shape the institutions of a niche are more likely to survive

Question 23

OE characteristics

Answer 23

Incumbent survival is mostly based on chance; generalists are more likely to survive