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Dynamic Capabilities and Pain Points in the Icelandic Energy Sector

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Dynamic Capabilities and Pain Points in the Icelandic Energy Sector Lokaverkefni til MS–gráðu í stjórnun og stefnumótun Dynamic Capabilities and Pain Points in the Icelandic Energy Sector Oddur Sturluson Febrúar 2016 Dynamic Capabilities and Pain Points in the Icelandic Energy Sector Oddur Sturluson Lokaverkefni til MS-gráðu í stjórnun og stefnumótun Leiðbeinandi: Gunnar Óskarsson Viðskiptafræðideild Félagsvísindasvið Háskóla Íslands Febrúar, 2016 Dynamic Capabilities and Pain Points in the Icelandic Energy Sector. Ritgerð þessi er 30 eininga lokaverkefni til MS prófs við Viðskiptafræðideild, Félagsvísindasvið Háskóla Íslands. © 2016 Oddur Sturluson Ritgerðina má ekki afrita nema með leyfi höfundar. Prentun: Háskólaprent Reykjavík, 2016 Table of Contents I. Introduction ......................................................................................................... 1 Need for the research .................................................................................................... 2 Research problem ......................................................................................................... 5 Nominal definitions ....................................................................................................... 7 Context ........................................................................................................................ 11 Environmental analysis ................................................................................................. 15 Porter’s five forces analysis ............................................................................................ 16 Consumer market analysis ............................................................................................. 21 PESTEL analysis ............................................................................................................... 22 Analysis of the Internal environment ............................................................................ 26 The value chain .............................................................................................................. 26 VRIO analysis .................................................................................................................. 31 SWOT matrix .................................................................................................................. 32 II. THEORY ............................................................................................................ 36 Theoretical foundations ............................................................................................... 36 Literature ..................................................................................................................... 41 Model ........................................................................................................................... 44 III. METHODS ........................................................................................................ 46 Design .......................................................................................................................... 48 Sample ......................................................................................................................... 49 Measurement ............................................................................................................... 53 Analysis ........................................................................................................................ 59 Validity ......................................................................................................................... 60 Assumptions ................................................................................................................. 61 IV: FINDINGS ......................................................................................................... 63 Brief overview .............................................................................................................. 63 Results ......................................................................................................................... 63 Descriptive analysis ...................................................................................................... 77 Validity/reliabilit .......................................................................................................... 78 V. DISCUSSION ...................................................................................................... 81 VI. CONCLUSION ................................................................................................... 84 Summary ...................................................................................................................... 84 Conclusions .................................................................................................................. 86 Implications .................................................................................................................. 86 Table of figures: PICTURE 1: BaRNEY'S CONCEPTUAL MODEL (PICTURE FROM NEWBERT, 2007) ILLUSTRaTES THE DIFFERENCE BETWEEN RESOURCES THaT RESULT IN COMPETITIVE ADVaNTAGE aND SUSTAINED COMPETITIVE aDVaNTAGE. ........................................................................................ 8 PICTURE 2: aNaLOGY BETWEEN BEHaVIORaL aND GRaMMaTICaL ENTITIES (GERSICK, C. J. G. & j. R. HACKMaN, 1990). THE ANALOGY BETWEEN BEHaVIORaL aND GRaMMaTICAL ENTITIES SERVES AS AN EXAMPLE OF HOW ROUTINES FUNCTION .......................................................................... 10 PICTURE 3: PORTER'S FIVE FORCES ........................................................................................................ 17 PICTURE 4: PESTEL aNaLYSIS (MCGEE ET aL., 2010) .............................................................................. 23 PICTURE 5: aN EXAMPLE OF CULTURaL INSENSITIVITY. ........................................................................ 25 PICTURE 6: PORTER'S VaLUE CHaIN (MCGEE ET aL., 2010). .................................................................. 27 PICTURE 7: SUPPLY CHaIN (FELLER ET aL., 2006). .................................................................................. 30 PICTURE 8: VRIO aNALYSIS (BARNEY & HESTERLY, 2011) ...................................................................... 32 PICTURE 9: SWOT MaTRIX (GRIFFIN, 2008) ........................................................................................... 34 QUESTION 1: .......................................................................................................................................... 65 QUESTION 2: .......................................................................................................................................... 66 QUESTION 3: .......................................................................................................................................... 66 QUESTION 4: .......................................................................................................................................... 67 QUESTION 5: .......................................................................................................................................... 67 QUESTION 6: .......................................................................................................................................... 68 QUESTION 7: .......................................................................................................................................... 68 QUESTION 8: .......................................................................................................................................... 69 QUESTION 9: .......................................................................................................................................... 70 QUESTION 10: ........................................................................................................................................ 70 QUESTION 11: ........................................................................................................................................ 71 QUESTION 12: ........................................................................................................................................ 71 QUESTION 13: ........................................................................................................................................ 72 QUESTION 14: ........................................................................................................................................ 72 QUESTION 15: ........................................................................................................................................ 73 QUESTION 16: ........................................................................................................................................ 73 QUESTION 17: ........................................................................................................................................ 74 QUESTION 18: ........................................................................................................................................ 74 QUESTION 19: ........................................................................................................................................ 75 QUESTION 20: ........................................................................................................................................ 75 QUESTION
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