A paradigm shift of energy sources: Critical review on competitive dynamics of solar PV industry in Indonesia

Nareswari Sumarsono, Sari Wahyuni, Lily Sudhartio

Research output: Contribution to specialist publicationArticle

3 Citations (Scopus)

Abstract

Background: The development of solar PV industry, both on a global and local level (in Indonesia) has shown a great paradigm shift in the source of energy, from the conventional into the renewables. This condition enhanced the importance of analyzing the competitive dynamics of renewable energy industry, in particular, the solar PV industry. Purpose: This study examined the competitive dynamics of solar PV industry in Indonesia, through first analyzing the ecosystem and stakeholders in the industry and followed by the analysis of the competitive dynamics and strategy within energy industry in general and within the solar PV industry in specific. Design/methodology/approach: Literature review was conducted as basis for the analysis. 21st centuries competition theory of Grimm et al. [13] was used as framework for the general energy industry analysis. Whereas Porter [23]'s framework was used as reference to analyze the competitive strategy of solar PV industry in Indonesia. Findings: Analysis on the structural characteristics of solar PV industry in Indonesia indicates that the industry is on its introductory stage, or also called as emerging industry. Challenges potentially constraining the development of the industry ranges from the absence of infrastructure and technological standardization until the response of threatened entity. Criteria determining the adoption of the product, which in this case is the solar PV system, is also a crucial factor to understand. This ranges from the nature of expected benefit until perception of technological change. At last, the findings also pointed out that despite of its drawbacks (such as uncertainty and risk) of this emerging industry condition, an appropriate implementation of strategic choices will enable solar PV industry in Indonesia to achieve an optimum yield. Research limitations: This study was conducted using literature review as basis. An empirical study might be valuable to complete this study. Originality/value: For academicians, this paper can be considered as a valuable starting point to conduct research on solar PV industry, particularly within the strategic management area. For practitioners, this study may serve to enhance understanding on solar PV industry in Indonesia.

Original languageEnglish
Pages236-245
Number of pages10
Volume41
Specialist publicationRenewable Energy Focus
DOIs
Publication statusPublished - Jun 2022

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