Regulatory Uncertainty: A Reason to Postpone Investments? Not Necessarily
There is a polarity in the literature as to whether companies do or do not postpone investment decisions in the light of regulatory uncertainty. In the case of flexible regulation characterized by a high degree and discontinuous resolution of uncertainty, we show that companies do not necessarily postpone investment decisions. We trace this observation back to three motivations: securing competitive resources, leveraging complementary resources, and alleviating institutional pressure. We connect these motivations to fundamental principles of the resource-based view and institutional theory and further show the existence of a regime where institutionally motivated and resource-based actions are not necessarily decoupled. We base our research on a case study covering 80 per cent of the German power generation industry which faces regulatory uncertainty from the European CO<sub>2</sub> Emission Trading Scheme. Copyright (c) Blackwell Publishing Ltd 2009.
Year of publication: |
2009
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Authors: | Hoffmann, Volker H. ; Trautmann, Thomas ; Hamprecht, Jens |
Published in: |
Journal of Management Studies. - Wiley Blackwell, ISSN 0022-2380. - Vol. 46.2009, 7, p. 1227-1253
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Publisher: |
Wiley Blackwell |
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