Searching for knowledge in response to proximate and remote problem sources: Evidence from the U.S. renewable electricity industry

Nilanjana Dutt and Will Mitchell

Strategic Management Journal, 2020, vol. 41, issue 8, 1412-1449

Abstract: Research Summary We consider how different problem sources—proximate versus remote—relate to heterogeneity in search breadth. While studies of search have established the importance of search breadth, and argued that problems trigger search, they have focused on a single problem source instigating search. We extend prior research by considering how search breadth differs in the presence of proximate and remote problem sources. Because of differences in familiarity with each type of problem, and in expectations of their ability to influence the problem source, problems triggered by remote sources associate with greater breadth. Firms' technological capabilities, meanwhile, temper these findings; capable firms exhibit broader search when facing problems raised by proximate sources. Using data describing the U.S. renewable electricity sector, we generate theoretical and empirical implications. Managerial Summary When facing new problems, firms tend to seek knowledge from various sources to better understand the problem and identify relevant solutions. The source of the problem may be an important trigger to the breadth of search activities, particularly whether the source is proximate or remote. To test this notion, we compare U.S. utility firms' search breadth when facing regulations emphasizing increased renewable generation, from both the federal and the state government. We find that firms tend to search for knowledge about renewable technologies more broadly following federal regulatory actions. However, firms that have previously generated renewable electricity search more broadly following state regulatory actions. By exploring firms' choices in the U.S. renewable electricity sector, our research generates important managerial and public policy implications.

Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://doi.org/10.1002/smj.3159

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:stratm:v:41:y:2020:i:8:p:1412-1449

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0143-2095

Access Statistics for this article

More articles in Strategic Management Journal from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().