TECHNOLOGY ORIENTATION AND EFFECTUATION – LINKS TO FIRM PERFORMANCE IN THE RENEWABLE ENERGY SECTOR OF SOUTH AFRICA

Authors

DOI:

https://doi.org/10.7166/26-3-1039

Keywords:

Effectuation, technology orientation, firm performance, renewable energy, emerging economy, experimentation, affordable loss, flexibility, alliances, South Africa.

Abstract

Effectuation processes are consistent with emergent or non-predictive strategies, and speak to the essence of Schumpeter’s theory of creative destruction. In this study, hypotheses are formulated to understand the relationship between effectuation, technology orientation, and firm performance. The study takes place in South Africa, which remains a highly significant economic player in sub-Saharan Africa, and is focused on the renewable energy sector. Survey results provide evidence that different dimensions of effectuation are positively associated with technology orientation, and influence firm performance. Policy makers should be encouraging firms to use effectual principles of experimentation, flexibility, establishing pre-commitments, and forming alliances, so as to maximise their returns on technology and constrain their potential losses.

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Author Biographies

Boris Urban, university of wits

chair and prof in entreprenruship at WBS

James Heydenrych, university of wits

masters student

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Published

2015-11-30

How to Cite

Urban, B., & Heydenrych, J. (2015). TECHNOLOGY ORIENTATION AND EFFECTUATION – LINKS TO FIRM PERFORMANCE IN THE RENEWABLE ENERGY SECTOR OF SOUTH AFRICA. The South African Journal of Industrial Engineering, 26(3), 125–136. https://doi.org/10.7166/26-3-1039

Issue

Vol. 26 No. 3 (2015)

Section

General Articles

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