Strategic rigidity and foresight for technology adoption among electric utilities

The variation in the adoption of a technology as a major source of competitive advantage has been attributed to the wide-ranging strategic foresight and the integrative capability of a firm. These possible areas of competitive advantage can exist in the periphery of the firm's strategic vision and can get easily blurred as a result of rigidness and can permeate in the decision-making process of the firm. This article explores how electric utility firms with a renewable energy portfolio can become strategically rigid in terms of adoption of newer technologies. The reluctance or delay in the adoption of new technology can be characterized as strategic rigidness, brought upon as a result of a firm's core competence or core capability in the other, more conventional technology arrangement. This paper explores the implications of such rigidness on the performance of a firm and consequently on the energy eco-system. The paper substantiates the results by emphasizing the case of Iberdrola S.A., an incumbent firm as a wind energy developer and its adoption decision behavior. We illustrate that the very routines that create competitive advantage for firms in the electric utility industry are vulnerable as they might also develop as sources of competitive disadvantage, when firms confront environmental change and uncertainty.

Barriers to the adoption of photovoltaic systems: The state of the art

Although photovoltaic (PV) systems have become much more competitive, the diffusion of PV systems still remains low in comparison to conventional energy sources. What are the current barriers hindering the diffusion of PV systems? In order to address this, we conducted an extensive and systematic literature review based on the Web of Science database. Our state-of-the-art review shows that, despite the rapid development and maturity of the technology during the past few years, the adoption of PV systems still faces several barriers. The wide adoption of PV systems-either as a substitute for other electricity power generation systems in urban areas or for rural electrification-is a challenging process. Our results show that the barriers are evident for both low- and high-income economies, encompassing four dimensions: sociotechnical, management, economic, and policy. Although the barriers vary across context, the lessons learned from one study can be valuable to others. The involvement of all stakeholders-adopters, local communities, firms, international organizations, financial institutions, and government-is crucial to foster the adoption.