Internationalization to survive; the case of renewable energy companies in Spain

2017 ◽  
Vol 27 (4) ◽  
pp. 306-334 ◽  
Author(s):  
Seyed Meysam Zolfaghari Ejlal Manesh ◽  
Alex Rialp-Criado
Keyword(s):  
Renewable Energy ◽  
Small Firms ◽  
International Markets ◽  
Energy Industry ◽  
Firm Level ◽  
Sustainable Entrepreneurship ◽  
Content Type ◽  
Future Studies ◽  
Energy Companies ◽  
Renewable Energy Industry

Purpose In this study, entrepreneurial internationalization in renewable energy industry as a high-tech and emerging industry was explored. The focus of this study is on firm level factors to understand how and why these companies entered the international markets and what are their challenges and difficulties in this process. To answer these questions, two main streams of literature were used: international entrepreneurship (IE) and sustainable entrepreneurship. Design/methodology/approach Case study methodology is selected for this research. Because this subject is new and empirical researches in renewable energy industry are scarce, a method to gather research and in-depth data was adopted. Following suggestions by Eisenhardt (1989), a multiple-case design method was used with nine cases of entrepreneurial companies in renewable energy industry from Spain. Findings Results show that in renewable energy industry firms, resources and capabilities such as need for funding and rapid commercialization are key factors that encourage companies to enter the international market. However, having access to the technological knowledge cannot be a compelling reason for internationalization of renewable energy companies from Spain. Moreover, the interaction between the large and small firms is an important factor that facilitates the process of internationalization. Research limitations/implications In this study, the focus was only on firm level factors, whereas other levels of analysis such as entrepreneur, environment, policy scheme and industrial factors need further attention in future studies. Moreover, this study is only limited to Spanish companies, and future studies can be replicated in other context. Practical implications Findings of the study have significant theoretical and empirical implications. First of all, it explains the entrepreneurial internationalization by taking advantage of sustainable entrepreneurship literature. In addition, empirical results of this study are significantly important for entrepreneurs to implement effective internationalization strategy to survive. Findings of this study can help policy makers for designing a supportive scheme for further development of this industry in the international markets. Originality/value This paper explores the entrepreneurial internationalization of renewable energy companies as an emerging industry by taking advantage of two streams of literature: international entrepreneurship and sustainable entrepreneurship. The results show the phenomenon of early internationalization in pre-commercialization phase. These findings put emphasis on interaction between large and small firms in process of internationalization in this specific industry.

Economic and technological forecasting competencies of German energy companies

2014 ◽  
Vol 8 (4) ◽  
pp. 588-610 ◽  
Author(s):  
Uwe Kehrel ◽  
Nathalie Sick
Keyword(s):  
Renewable Energy ◽  
Small Body ◽  
Renewable Energies ◽  
Energy Industry ◽  
Firm Level ◽  
Economic Forecasting ◽  
Content Type ◽  
Technological Forecasting ◽  
Energy Companies ◽  
Industry Structures

Purpose – This paper aims to extend the small body of literature on energy industry transitions on firm level. A growing number of articles shed light on paradigm shifts in the energy industry and the influence of renewable energies on industry structures. In the majority of cases, the authors analyze changes on a global or national level. Design/methodology/approach – Energy companies’ forecasting capabilities are particularly important to enable them to react in time to upcoming changes in industry structures. In this context, we analyze annual reports of German energy companies to evaluate their economic and technological forecasting competencies. Findings – Big energy providers offer high economic forecasting quality, but seem to be less able to derive valid forecasts in terms of renewable energies from the currently unstable political frameworks. On the contrary, renewable energy companies do not seem to suffer from these difficulties and provide good foresting accuracy in terms of renewable energy development, but show less accurate economic forecasting quality. Practical implications – Big energy providers need to find the means of responding to the challenges and integrate changing political guidelines and support into their forecasting system. Renewable energy companies, in contrast, should focus on company-level profitability and the respective economic forecasting competencies. Originality/value – This paper makes a significant contribution to the literature on the subject of energy industry transitions by providing insights from publicly available data on firm level. The findings are highly relevant for managers of the energy industry and policy makers in this field.

The Factors Affect Company Performance in Renewable Energy Industry

2017 ◽  
Vol 5 (6) ◽  
pp. 188-204 ◽  
Author(s):  
YINLIN TSAI ◽  
Johnny Tung
Keyword(s):  
Renewable Energy ◽  
Capital Intensity ◽  
Performance Measure ◽  
Energy Industry ◽  
Long Term Results ◽  
Company Performance ◽  
Firm Level ◽  
Country Level ◽  
Performance Determinants ◽  
Renewable Energy Industry

Concerns about global warming and climate change are generating interest in renewable energy measures with the purpose to minimize environmental impact. Promoting renewable energy production becomes indispensable since its represent a tiny fraction of energy consumed. The purpose of this study is to identify the performance determinants are divided in country specific advantages and firm specific advantages. Companies were selected from Bloomberg and filtered due to its information ava ilability from COMPUSTAT to construct a Panel Data structure. The results proved that both country level (shares of renewable and energy consumption) and firm level (market capitalization, employee growth rate and capital intensity) determinants were signi ficant in the renewable energy industry. Through the analysis, it’s possible to realize that return on assets it’s a performance measure with long term results, but unlike it, gross profit margin is variable that demonstrate short term results. We conclude that renewable energy industry has a great potential due to its results performed.

scholarly journals An Influence of Group Purchasing Organizations on Financial Security of SMEs Operating in the Renewable Energy Sector—Case for Poland

Energies ◽  
2020 ◽  
Vol 13 (11) ◽  
pp. 2926 ◽  
Author(s):  
Grzegorz Zimon ◽  
Marek Sobolewski ◽  
Grzegorz Lew
Keyword(s):  
Renewable Energy ◽  
Environmental Changes ◽  
Research Question ◽  
Energy Sector ◽  
Energy Industry ◽  
The European Union ◽  
Operating Cycle ◽  
Cash Conversion Cycle ◽  
Energy Companies ◽  
Renewable Energy Industry

European countries are increasingly using renewable energy. Poland is an outsider of such solutions. The Polish energy sector is primarily based on energy produced from coal. However, environmental changes and regulations of the European Union are forcing the increased use of energy from renewable sources. Renewable energy is an industry that is still developing in Poland. At the same time, Poland is a country where the political decisions of the government over the last few years have resulted in a significant limitation of the possibilities of renewable energy development. These actions have also resulted in lowering the profitability of the currently operating renewable energy enterprises, especially those from the sector of small and medium-sized enterprises. An opportunity for SMEs operating in the renewable energy sector is to merge into industry purchasing groups. The aim of the article—and at the same time the research question—is: Is it financially safer for renewable energy companies to operate within purchasing groups compared to companies operating independently in this industry? Traditional ways of purchasing can be transferred to integrated purchasing systems, which will be created by purchasing groups associating renewable energy companies. For this purpose, the financial effects of the implementation and functioning of the purchasing groups in the renewable energy sector in relation to entities operating independently were examined. In the research of renewable energy SMEs, a comparative analysis of key indicators determining the possibility of continuing the activity of these entities was made. The following indicators were examined: current financial liquidity ratio, return on sales, operating cycle, cash conversion cycle, share of receivables in current assets, share of inventory in current assets, turnover ratios, level of receivables, liabilities and profitability. The scientific literature is dominated by studies on purchasing groups in the pharmaceutical and construction industries. Thanks to the research conducted, it has been indicated that the renewable energy industry can also improve its profitability, and thus the possibility of safe continuation of operations by extending the business model to inter-entity cooperation within purchasing groups. Increasing the efficiency of individual entities of the renewable energy industry within purchasing groups becomes particularly important during the COVID-19 pandemic. Statistical analyses and their graphic presentation present the significant impact on the safety and profitability of renewable energy entities in the form of purchasing groups.

Signaling with convertible debt in the renewable energy industry?

2015 ◽  
Vol 9 (2) ◽  
pp. 274-292 ◽  
Author(s):  
Christoph Ettenhuber ◽  
Dirk Schiereck
Keyword(s):  
Renewable Energy ◽  
Stock Returns ◽  
Energy Industry ◽  
Convertible Debt ◽  
Market Reactions ◽  
Content Type ◽  
Shift Analysis ◽  
Financing Costs ◽  
Option Pricing Theory ◽  
Renewable Energy Industry

Purpose – The purpose of this paper is to show how convertible debt is used in the renewable energy industry. The authors argue that there is an investor rationing component to the design and market impact of convertible debt securities. Design/methodology/approach – The authors apply event study methodology, option pricing theory and risk shift analysis to examine capital market reactions following the issuance of convertible debt by exchange-listed companies of the renewable energy sector. Findings – Contrary to prior cross-industry research findings, the authors show that convertible debt in the renewable energy industry tends to have a debt-like structure, and its issue is associated with strongly negative announcement returns. The authors further show that convertible issuers face high business risk and adverse selection costs. Practical implications – The results have important implications for both renewable energy industry companies and investors. For example, one problem is that the risk-mitigating features of convertible debt may not materialize, if issuers fail to credibly signal firm quality to the markets. Furthermore, excessive growth assumptions and mismatches between project risk/return and financing costs may render it more difficult to create credible signals. Originality/value – The paper contributes to three primary strands of literature. One is the research on finance and growth. Here, this paper provides new insights into risk-mitigating securities that should more effectively mirror the risk and return distributions of emerging industry issuers. Additionally, it extends the research on the motives for convertible debt offerings and provides insight on stock returns around such announcements.

scholarly journals AN ANALYSIS OF FINANCIAL PERFORMANCE AND INVESTOR’S EXPERIENCE OF INDIAN RENEWABLE ENERGY INDUSTRY

2021 ◽  
Vol 5 (1) ◽  
pp. 1-9
Author(s):  
T. S. Devaraja ◽  
D. K. Jagadeesha
Keyword(s):  
Renewable Energy ◽  
Financial Performance ◽  
Social Economy ◽  
Energy Sector ◽  
Jel Classification ◽  
Energy Industry ◽  
The Sustainable Development ◽  
Investment Experience ◽  
Energy Companies ◽  
Renewable Energy Industry

The development of the renewable energy industry is an important support for the sustainable development of the social economy. It is strategic significance in economic and national security is immeasurable. The process of cultivating, developing, and upgrading the renewable energy industry in India is a comprehensive system that includes finance, resources, technology, and management. Renewable energy finance is a new area of public policy that requires innovation and research that will have a significant impact on investors in the World. Till today, many researchers think renewable energy is an issue of science and engineering, but the future of renewable energy is no longer about science and technology; it's all about access to finance. The renewable energy sector in India is growing rapidly and presents an opportunity for strong financial returns. The present research paper aims to know the financial performance of selected renewable energy companies of the Indian renewable energy industry through various financial ratios. The financial performance of any industry is effect to their respective industrial investors. Hence, investors' experience is analyzed. A specific group of investors who invest in the renewable energy industry is selected and posed a structured questionnaire to know their investment experience in the renewable energy sector in India. JEL Classification Codes: F36, P17, G23, Q29, Q43, L7

Knowledge Assets Management in the Energy Industry

2017 ◽  
pp. 226-244
Author(s):  
Antonio Lerro ◽  
Giovanni Schiuma ◽  
Francesca A. Jacobone
Keyword(s):  
Renewable Energy ◽  
Small Firms ◽  
Small And Medium Enterprises ◽  
Energy Sector ◽  
The Other ◽  
Energy Industry ◽  
Knowledge Assets ◽  
Medium Enterprises ◽  
Renewable Energy Industry ◽  
Assets Management

The purpose of this chapter is to examine the state-of-the-art of Knowledge Assets Management (KAM) in the energy industry, reviewing both the literature and the practice of KAM initiatives. Particular attention is provided to the renewable energy sector and to the Small and Medium Enterprises (SMEs). It emerges that most of the literature is focused on big companies and little attention is paid to the renewable energy sector. It emerges that some organizations, especially in the oil industry, are seen as leaders in KM practice. On the other hand, SMEs operating in the renewable energy industry are not aware of the relevance of KAM and then do not address explicitly KAM initiatives or projects. The research reveals that small firms do indeed manage knowledge assets informally as part of their normal activities, without using the terminology and concepts of knowledge management discipline.

Knowledge Assets Management in the Energy Industry

2015 ◽  
pp. 38-55
Author(s):  
Antonio Lerro ◽  
Giovanni Schiuma ◽  
Francesca A. Jacobone
Keyword(s):  
Renewable Energy ◽  
Small Firms ◽  
Small And Medium Enterprises ◽  
Energy Sector ◽  
The Other ◽  
Energy Industry ◽  
Knowledge Assets ◽  
Medium Enterprises ◽  
Renewable Energy Industry ◽  
Assets Management

The purpose of this chapter is to examine the state-of-the-art of Knowledge Assets Management (KAM) in the energy industry, reviewing both the literature and the practice of KAM initiatives. Particular attention is provided to the renewable energy sector and to the Small and Medium Enterprises (SMEs). It emerges that most of the literature is focused on big companies and little attention is paid to the renewable energy sector. It emerges that some organizations, especially in the oil industry, are seen as leaders in KM practice. On the other hand, SMEs operating in the renewable energy industry are not aware of the relevance of KAM and then do not address explicitly KAM initiatives or projects. The research reveals that small firms do indeed manage knowledge assets informally as part of their normal activities, without using the terminology and concepts of knowledge management discipline.

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