Uncovering the Strategies of Environmental-Technology Entrepreneurs

Abstract In order to reach a globally sustainable economy transitions are required such as the transition from a fossil-fuel based system to a renewable energy based system. In the analysis of technological transitions innovation scholars have used two different perspectives: the multi-level perspective (MLP) and the technological innovation systems (TIS) framework. In both frameworks entrepreneurs are crucial: as transitions require radical change it is expected that (new) firms that bring new technologies to the market play an important role and that their strategies matter for their own success and the success of the transition process. However, in the TIS and MLP frameworks it remains unclear how entrepreneurs (should) act with respect to facilitating technological transitions. This study combines the entrepreneurship and strategy literature with the TIS and MLP frameworks in order to further conceptualize the role and strategies of entrepreneurs. However, entrepreneurship literature generally does not provide a clear understanding of how entrepreneurs interact with the system context and how entrepreneurs aim to influence the system in which they operate. The combination of these research fields is particularly interesting in order to understand how the system context shapes entrepreneurs on one hand and how entrepreneurs shape the system on the other. Furthermore, this study focuses on a subset of entrepreneurs that start new firms based on environmental-technology innovations, defined as environmental-technology entrepreneurs (ETEs). Environmental technologies have the potential to fulfill our current needs, while simultaneously reducing environmental stress. However, the diffusion of these technologies is likely to encounter specific barriers such as incompatibility with the current institutional system and infrastructure and lack of a compatible financial system. It is therefore expected that ETEs need specific strategies in order to overcome these barriers and increase their chances for success. The main research question of this study is therefore: what strategies are used by entrepreneurs based on the greenness, novelty and extent of diffusion of their technological innovation? Interviews will be conducted with entrepreneurs from different sectors to analyze this question.