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Winning By Routine.docx
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Winning By Routine?

An empirical study of the solar panel industry in Austin, TX

Existing research on entrepreneurial strategy points to a key tension that entrepreneurs face: When to pursue efficiency, structure and routine; and when to prioritize flexibility, experimentation and bricolage. Building on recent entrepreneurial strategy research on the microfoundations of firm success, this paper tests whether adding elements of structure and routinization in the early days of a nascent market is associated with improved firm performance. Using as a case the solar panel installation market in Austin, Texas from 2004-2014, the paper employs a linear panel regression model to determine the association of efficiency in installation time, pricing and cost estimation are correlated with greater firm revenues and market share. Results suggest that minimizing variation in the time required to install panels is associated with higher revenues, but not market share; other measures of routinization, however, are not correlated with firm success. If future works concludes that these results are consistent across other geographies and markets, then entrepreneurs, incubators and policymakers would do well to update how they train entrepreneurs and support nascent markets.

In this repository, you'll find:

  • A presentation to the 2017 Behavioral Economics and Climate Change (BECC) conference (BECC/Hand, Mark - BECC presentation.pptx)
  • A presentation to Paul von Hippel's 2017 Research Methods class (PVH/MCH-PVH.key) and associated paper (Winning by Routine.docx)