Would turkeys vote for Christmas? New entrant strategies and coopetitive tensions in the emerging demand response industry

dc.contributorAalto Universityen
dc.contributor.authorKangas, Hanna-Liisa
dc.contributor.authorRuggiero, Salvatore
dc.contributor.authorAnnala, Salla
dc.contributor.authorOhrling, Tiina
dc.contributor.departmentFinnish Environment Institute
dc.contributor.departmentSustainability in Business
dc.contributor.departmentLUT University
dc.contributor.departmentDepartment of Management Studies
dc.description.abstractTo enter a market and scale up, entrant firms often need to cooperate with their incumbent competitors, so they are in coopetition with them. Our goal is to increase the understanding of the antecedents of coopetition and the ways in which new entrant firms navigate coopetitive tensions with incumbents. Moreover, we are interested in the impacts that coopetition has on the value creation and value appropriation of new entrant firms. So far, most literature on cooperation and coopetition in energy markets has provided the perspective of the incumbents. To study the issues empirically, we interviewed 15 demand response (DR) entrants. These firms operate in Finnish energy markets, providing automated DR services, in which Finland is a forerunner country. According to our results, collaboration between new entrant DR firms and energy incumbents was needed in order to establish the new markets. In addition, cooperation with incumbents was beneficial to DR entrants since they were able to gain new customers and increase the efficiency of their resource use due to, for example, common technological development activities. We found that the structure of energy markets was an important factor in shaping the market entry of DR entrants. According to our results, new entrants can enter electricity markets without much cooperation with the incumbents, but cooperation is necessary in natural monopoly district heating markets. As new EU regulations will enhance automated DR services, the results of this study have relevance in other EU Member States where automated DR markets have not yet been established.en
dc.description.versionPeer revieweden
dc.identifier.citationKangas , H-L , Ruggiero , S , Annala , S & Ohrling , T 2021 , ' Would turkeys vote for Christmas? New entrant strategies and coopetitive tensions in the emerging demand response industry ' , Energy Research and Social Science , vol. 76 , 102051 . https://doi.org/10.1016/j.erss.2021.102051en
dc.identifier.otherPURE UUID: 6d195f14-8491-4175-bfaf-e6c2b62cf64a
dc.identifier.otherPURE ITEMURL: https://research.aalto.fi/en/publications/6d195f14-8491-4175-bfaf-e6c2b62cf64a
dc.identifier.otherPURE LINK: http://www.scopus.com/inward/record.url?scp=85103963062&partnerID=8YFLogxK
dc.identifier.otherPURE LINK: https://www.sciencedirect.com/science/article/pii/S2214629621001444
dc.identifier.otherPURE FILEURL: https://research.aalto.fi/files/61864847/1_s2.0_S2214629621001444_main.pdf
dc.relation.ispartofseriesEnergy Research and Social Scienceen
dc.relation.ispartofseriesVolume 76en
dc.subject.keywordValue creation
dc.subject.keywordValue appropriation
dc.subject.keywordDemand response
dc.titleWould turkeys vote for Christmas? New entrant strategies and coopetitive tensions in the emerging demand response industryen
dc.typeA1 Alkuperäisartikkeli tieteellisessä aikakauslehdessäfi