From plan to plant: Effects of certification on operational start-up in the emergent independent power sector

Wesley D. Sine, Robert J. David, Hitoshi Mitsuhashi

Research output: Contribution to journalArticle

113 Citations (Scopus)

Abstract

In this paper, we study the transition from planned venture to operational start-up in the emergent independent power sector. Planned ventures face tremendous obstacles in assembling the resources necessary to begin operations; we hypothesize and show that formal certification from authorized actors increases the likelihood of making this transition. Moreover, we find that the effects of certification are contingent on the legitimacy of the sector as a whole: Certifications have a stronger effect on start-ups when sector legitimacy is low than when it is high. This research helps us understand a rarely studied organizational transition-from entrepreneurial intention to actual operations-within nascent sectors. It directs attention to the legitimating effects of formal certification, highlights the importance of a multilevel approach to legitimacy, and contributes to the growing rapprochement between entrepreneurial studies and institutional theory.

Original languageEnglish
Pages (from-to)578-594
Number of pages17
JournalOrganization Science
Volume18
Issue number4
DOIs
Publication statusPublished - 2007 Jul 1

Keywords

  • Alternative energy
  • Certification
  • Entrepreneurship
  • Institutional theory
  • Legitimacy
  • New organizational forms

ASJC Scopus subject areas

  • Strategy and Management
  • Organizational Behavior and Human Resource Management
  • Management of Technology and Innovation

Fingerprint Dive into the research topics of 'From plan to plant: Effects of certification on operational start-up in the emergent independent power sector'. Together they form a unique fingerprint.

  • Cite this