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A capability perspective on performance deficiencies in utility firms

Author

Listed:
  • Worch, Hagen
  • Truffer, Bernhard
  • Kabinga, Mundia
  • Eberhard, Anton
  • Markard, Jochen

Abstract

This paper proposes a capability-based framework to explain performance deficiencies in utility firms as a result of policy and regulatory changes. The framework complements conventional explanations such as transaction cost and agency approaches, which suggest that appropriate incentives and regulations increase the performance of public utilities after relatively short adaptation processes. In contrast, we argue that capability gaps – understood as an inadequate availability of competences, skills and experiences – tend to have long-lasting effects on firm performance. A crucial implication of the capability perspective is that regulatory interventions that create capability gaps at the firm level may affect utility performance – and the ability of infrastructure sectors to provide adequate services – more severely than expected by traditional approaches.

Suggested Citation

  • Worch, Hagen & Truffer, Bernhard & Kabinga, Mundia & Eberhard, Anton & Markard, Jochen, 2013. "A capability perspective on performance deficiencies in utility firms," Utilities Policy, Elsevier, vol. 25(C), pages 1-9.
  • Handle: RePEc:eee:juipol:v:25:y:2013:i:c:p:1-9
    DOI: 10.1016/j.jup.2012.12.001
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    References listed on IDEAS

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    Cited by:

    1. Darmani, Anna, 2015. "Renewable energy investors in Sweden: A cross-subsector analysis of dynamic capabilities," Utilities Policy, Elsevier, vol. 37(C), pages 46-57.

    More about this item

    Keywords

    Capabilities; Utilities; Performance; Regulation;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
    • M50 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - General

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