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Nevo, Chinedu Miracle
(2024).
DOI: https://doi.org/10.21954/ou.ro.00100927
Abstract
A review of the extant literature on strategy reveals a scarcity of research on the renewable energy sector in African markets. Thus, renewable energy startups in these markets have a limited knowledge base to inform their understanding of the market entry and adaptation strategies that are suitable for their circumstances. This study, therefore, investigates the market entry and adaptation strategies that support the success and sustainability of renewable energy startups in Nigeria and Uganda, the two countries that provide the geographical context. The study also explores the key factors that determine the performance of startups in adapting to these market contexts, including the role of regulatory, policy, and financial institutions. Further, the study examines the implications of external shocks such as the recent pandemic and the Russia-Ukraine conflict. A qualitative research methodology is adopted and implemented using a case study approach. Theoretically, the study is informed by aspects of institutional theory, the resource-based view of strategy, stakeholder theory, and the dynamic capabilities perspective of strategy.
The findings of the study reveal that multi-level partnerships, collaborations, and tailored and hybrid advertising methods are the core market entry and adaptation strategies adopted by the startups in question. Importantly, the internal and cross-border partnerships and word-of-mouth advertising keep these startups in business, even during periods of turmoil. The institutional environment is particularly unfavorable to these startups. While the regulatory institutions impose high and multiple taxes, the financial institutions set unrealistic requirements as a pre-condition for accessing loans. On the other hand, the policy institutions were found to be more interested in announcing policies than implementing them. Lastly, external shocks were found to considerably impact the performance and sustainability of renewable energy startups. Overall, the study contributes theoretically, methodologically, and empirically to the holistic understanding of firm strategic choices from the perspectives of renewable energy startups and African emerging markets. Specifically, this study contributes to the existing knowledge of the renewable energy entrepreneurial ecosystem in Nigeria and Uganda by providing a more nuanced theoretical contextualization and a more relevant conceptualization of strategic choices regarding market-entry and adaptation. Moreover, the findings have practical implications for renewable energy startup founders, policymakers, financial institutions, and business regulators in Nigeria and Uganda. Finally, the study identifies some limitations and provides directions for future research advancement.
CORE (COnnecting REpositories)
CORE (COnnecting REpositories)
