Explanations of firm survival in renewable energy in the United States: a study of ethanol refineries

Peter Kedron, Sharmistha Bagchi-Sen

Research output: Contribution to journalArticle

Abstract

Firm survival is key in understanding the evolution of industries and the larger economy. Although exit and entry are common occurrences during an industry’s life cycle, it is not always easy to predict who will survive. Literature suggests a range of factors, both internal and external to the firm, and corresponding measures as determinants of survival or exit. However, these measures do not directly explain firm-level strategies such as internal adjustments to external conditions. In this paper, we use the U.S. biofuel industry to examine firm survival. As a resource-based industry focused on process innovation, biofuel production attracted farmer-entrepreneurs and related-industry investors after policies mandates and subsidies generated a dedicated market for the fuel. Despite support, not all firms survived a period of industrial sorting that followed the 2007–2008 recession. This study shows that local connections/embeddedness, knowledge base and knowledge sharing, and entrepreneurial efforts were critical for firm survival in addition to age, capacity, ownership, and location.

Original languageEnglish (US)
Pages (from-to)2237-2255
Number of pages19
JournalEuropean Planning Studies
Volume26
Issue number11
DOIs
StatePublished - Nov 2 2018

Fingerprint

renewable energy
ethanol
firm
energy
biofuel
industry
entrepreneur
recession
life cycle
sorting
subsidy
investor
ownership
refinery
farmer
innovation
determinants
market
economy
resource

Keywords

  • Biofuel
  • firm entry/exit
  • knowledge sharing
  • process innovation
  • survival

ASJC Scopus subject areas

  • Geography, Planning and Development

Cite this

Explanations of firm survival in renewable energy in the United States : a study of ethanol refineries. / Kedron, Peter; Bagchi-Sen, Sharmistha.

In: European Planning Studies, Vol. 26, No. 11, 02.11.2018, p. 2237-2255.

Research output: Contribution to journalArticle

@article{42a071853f4f4005b2707752fa3bd4a8,
title = "Explanations of firm survival in renewable energy in the United States: a study of ethanol refineries",
abstract = "Firm survival is key in understanding the evolution of industries and the larger economy. Although exit and entry are common occurrences during an industry’s life cycle, it is not always easy to predict who will survive. Literature suggests a range of factors, both internal and external to the firm, and corresponding measures as determinants of survival or exit. However, these measures do not directly explain firm-level strategies such as internal adjustments to external conditions. In this paper, we use the U.S. biofuel industry to examine firm survival. As a resource-based industry focused on process innovation, biofuel production attracted farmer-entrepreneurs and related-industry investors after policies mandates and subsidies generated a dedicated market for the fuel. Despite support, not all firms survived a period of industrial sorting that followed the 2007–2008 recession. This study shows that local connections/embeddedness, knowledge base and knowledge sharing, and entrepreneurial efforts were critical for firm survival in addition to age, capacity, ownership, and location.",
keywords = "Biofuel, firm entry/exit, knowledge sharing, process innovation, survival",
author = "Peter Kedron and Sharmistha Bagchi-Sen",
year = "2018",
month = "11",
day = "2",
doi = "10.1080/09654313.2018.1530150",
language = "English (US)",
volume = "26",
pages = "2237--2255",
journal = "European Planning Studies",
issn = "0965-4313",
publisher = "Routledge",
number = "11",

}

TY - JOUR

T1 - Explanations of firm survival in renewable energy in the United States

T2 - a study of ethanol refineries

AU - Kedron, Peter

AU - Bagchi-Sen, Sharmistha

PY - 2018/11/2

Y1 - 2018/11/2

N2 - Firm survival is key in understanding the evolution of industries and the larger economy. Although exit and entry are common occurrences during an industry’s life cycle, it is not always easy to predict who will survive. Literature suggests a range of factors, both internal and external to the firm, and corresponding measures as determinants of survival or exit. However, these measures do not directly explain firm-level strategies such as internal adjustments to external conditions. In this paper, we use the U.S. biofuel industry to examine firm survival. As a resource-based industry focused on process innovation, biofuel production attracted farmer-entrepreneurs and related-industry investors after policies mandates and subsidies generated a dedicated market for the fuel. Despite support, not all firms survived a period of industrial sorting that followed the 2007–2008 recession. This study shows that local connections/embeddedness, knowledge base and knowledge sharing, and entrepreneurial efforts were critical for firm survival in addition to age, capacity, ownership, and location.

AB - Firm survival is key in understanding the evolution of industries and the larger economy. Although exit and entry are common occurrences during an industry’s life cycle, it is not always easy to predict who will survive. Literature suggests a range of factors, both internal and external to the firm, and corresponding measures as determinants of survival or exit. However, these measures do not directly explain firm-level strategies such as internal adjustments to external conditions. In this paper, we use the U.S. biofuel industry to examine firm survival. As a resource-based industry focused on process innovation, biofuel production attracted farmer-entrepreneurs and related-industry investors after policies mandates and subsidies generated a dedicated market for the fuel. Despite support, not all firms survived a period of industrial sorting that followed the 2007–2008 recession. This study shows that local connections/embeddedness, knowledge base and knowledge sharing, and entrepreneurial efforts were critical for firm survival in addition to age, capacity, ownership, and location.

KW - Biofuel

KW - firm entry/exit

KW - knowledge sharing

KW - process innovation

KW - survival

UR - http://www.scopus.com/inward/record.url?scp=85054680684&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85054680684&partnerID=8YFLogxK

U2 - 10.1080/09654313.2018.1530150

DO - 10.1080/09654313.2018.1530150

M3 - Article

AN - SCOPUS:85054680684

VL - 26

SP - 2237

EP - 2255

JO - European Planning Studies

JF - European Planning Studies

SN - 0965-4313

IS - 11

ER -