EMERGENCE OF AN ENERGY SAVING MARKET – THE RISE OF ENERGY SERVICE COMPANIES, ACTA UNIVERSITATIS OULUENSIS G Oeconomica 86
|ISBN-13:||978-952-62-1300-2 || |
|Kustantaja:||Oulun yliopisto|| |
|Sijainti:||Print Tietotalo|| |
|Tekijät:||NYKÄNEN RISTO|| |
This study examines emerging service markets1 and creates a model to capture both the service provider’s activities within market development and the interplay between different market actors. This work aims to identify the key elements behind sustainable market development, specifically examining 1) market activities, 2) the role of innovation and 3) the necessary evolutionary factors, where a market consists of multiple buyers and sellers and comparable market offerings.
The empirical part of the study is conducted in the form of a qualitative case study, which is used to analyse the dynamic nature of emerging market development. The study uses a multi-method approach to data collection to capture the market’s evolution and relationships between market actors. The study follows emerging energy saving market development taking the perspective of an Energy Service Company in Dubai.
As the main outcome of the study, it is argued that the service provider needs to direct its activities to build those relationships necessary to gain market acceptance and a coherent market offering before it can truly exploit market opportunities. As a characteristic of an emerging market, different interpretations of an innovation increase market dynamics, which slows market acceptance. Therefore, the service provider’s innovation process needs to serve market needs first; later, when the market has evolved, the innovation process is divided into co-innovation and structured innovation. From the evolutionary point of view, many service markets need to be fostered by market actors, as well as needing government-built regulatory and market support mechanisms. This need is especially valid for services that have other societal goals beyond pure financial interests.
For a new service provider, an understanding of emerging markets is essential to appropriately set expectations and to accurately plan for the timing and effort needed for market entry.
1 An emerging market in this study represents the market development phase that occurs when a market has been created. Markets are emerging everywhere regardless of country or other geographical area and should not be confused with developing country-related emerging markets.