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The Emergence of a Bioenergy Company - A business case examining TallOil AB

Hlep, Robert (2006)
The International Institute for Industrial Environmental Economics
Abstract
The EU needs to be less dependent on fossil fuels. One of the alternatives is bioenergy. The Bioenergy industry is still emerging and companies within it may face different obstacles. This thesis presents a chronological analysis of the foundational process and development of a bioenergy company named TallOil, based in Sweden. This company is one of the leading suppliers of biofuels in Sweden and has experienced rapid growth in the recent years. As such it could represent one of a new "breed" of market actors that take the bioenergy sector from a predominantly niche status to the energy market mainstream.

The company's development is presented chronologically along with indicators of business success such as net sales and the profit since... (More)
The EU needs to be less dependent on fossil fuels. One of the alternatives is bioenergy. The Bioenergy industry is still emerging and companies within it may face different obstacles. This thesis presents a chronological analysis of the foundational process and development of a bioenergy company named TallOil, based in Sweden. This company is one of the leading suppliers of biofuels in Sweden and has experienced rapid growth in the recent years. As such it could represent one of a new "breed" of market actors that take the bioenergy sector from a predominantly niche status to the energy market mainstream.

The company's development is presented chronologically along with indicators of business success such as net sales and the profit since the inception of the company. Moreover, utilising business, sociological, marketing research, management and similar literature, the "nature" of the organisation and its beliefs and norms are examined, the reasons that led to its foundation are elaborated, and the key role of the founder (Mr. Lundberg), his entrepreneurial drive, vision and attitudes to business and its inherent risks are researched. The organisational culture and strategic orientation of the company are examined within this thesis as well.

Being active in a new industry, the company also has to fight for legitimacy in the eyes of society, the market, its competitors and political spheres. The inherent legitimacy of the industry (meaning the acceptance of the industry by its environment) is analysed at four levels: organisational, intraindustrial, interindustrial and institutional.

This analysis indicates that TallOil emerged and has grown on the entrepreneurial drive of Mr. Lundberg. In the process he has been utilising the support Svebio (the Swedish biomass association) and Novator (a publishing and consulting company in the field of bioenergy) have been offering to the bioenergy industry. These two organisations also seem to form an important part of TallOil's bioenergy network.

As far as the legitimacy is concerned, positive factors supporting it were identified at all four levels, but so were the negative factors resisting it. It appears that great deal of resistance TallOil has been facing comes from interindustrial and institutional level.

Furthermore the results show that entrepreneurial and creative culture (adhocracy type of culture) is the dominant one in TallOil. Strong traits of innovative behaviour are also present in the strategic orientation, in which proactiveness appears to be the prevailing dimension. But among other things, this may also indicate that some prudence is needed in exercising proactive behaviour, because outcomes of such behaviour are not necessarily positive. (Less)
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author
Hlep, Robert
supervisor
organization
year
type
H1 - Master's Degree (One Year)
subject
keywords
Bioenergy, Legitimacy, Company Culture, Strategic Orientation, Environmental studies, Miljöstudier
language
English
id
1321949
date added to LUP
2007-02-08
date last changed
2007-02-15
@misc{1321949,
  abstract     = {The EU needs to be less dependent on fossil fuels. One of the alternatives is bioenergy. The Bioenergy industry is still emerging and companies within it may face different obstacles. This thesis presents a chronological analysis of the foundational process and development of a bioenergy company named TallOil, based in Sweden. This company is one of the leading suppliers of biofuels in Sweden and has experienced rapid growth in the recent years. As such it could represent one of a new "breed" of market actors that take the bioenergy sector from a predominantly niche status to the energy market mainstream.

The company's development is presented chronologically along with indicators of business success such as net sales and the profit since the inception of the company. Moreover, utilising business, sociological, marketing research, management and similar literature, the "nature" of the organisation and its beliefs and norms are examined, the reasons that led to its foundation are elaborated, and the key role of the founder (Mr. Lundberg), his entrepreneurial drive, vision and attitudes to business and its inherent risks are researched. The organisational culture and strategic orientation of the company are examined within this thesis as well.

Being active in a new industry, the company also has to fight for legitimacy in the eyes of society, the market, its competitors and political spheres. The inherent legitimacy of the industry (meaning the acceptance of the industry by its environment) is analysed at four levels: organisational, intraindustrial, interindustrial and institutional.

This analysis indicates that TallOil emerged and has grown on the entrepreneurial drive of Mr. Lundberg. In the process he has been utilising the support Svebio (the Swedish biomass association) and Novator (a publishing and consulting company in the field of bioenergy) have been offering to the bioenergy industry. These two organisations also seem to form an important part of TallOil's bioenergy network.

As far as the legitimacy is concerned, positive factors supporting it were identified at all four levels, but so were the negative factors resisting it. It appears that great deal of resistance TallOil has been facing comes from interindustrial and institutional level.

Furthermore the results show that entrepreneurial and creative culture (adhocracy type of culture) is the dominant one in TallOil. Strong traits of innovative behaviour are also present in the strategic orientation, in which proactiveness appears to be the prevailing dimension. But among other things, this may also indicate that some prudence is needed in exercising proactive behaviour, because outcomes of such behaviour are not necessarily positive.},
  author       = {Hlep, Robert},
  keyword      = {Bioenergy,Legitimacy,Company Culture,Strategic Orientation,Environmental studies,Miljöstudier},
  language     = {eng},
  note         = {Student Paper},
  title        = {The Emergence of a Bioenergy Company - A business case examining TallOil AB},
  year         = {2006},
}