Use of Renewable Energy as a Strategic Action for Companies in the Agricultural Sector

Abstract

Abstract

Objective: to describe the use of renewables energies in firms in the agricultural sector as well as identifying if its use is associated with variables of competitiveness with the aim of contributing to the discussion about whether this type of energy affects competitiveness.

Design/methodology/approach: A methodological instrument was designed to be applied to managers and owners of firms in agricultural sector. It was built based on the theory of industrial organization and competitiveness. The information was encoded to create a database that allows us to perform an association test and cluster analysis.

Results: The use of renewable energies in the firms attends economic and commercial strategies. Of the twelve variables of competitiveness proposed to compare the firms, nine were associated with renewable energies use. The firms that operate with renewable energies show superior results in the comparison analysis through clusters.

Limitations on study/implications: The results apply to the firms of the agricultural sector analyzed in the region.  Although the method of analysis used could be replicated it would be appropriate to add financial and energy consume variables.

Findings/Conclusions: The use of renewable energies is considered as strategic conduct that allows improving the market position of the firms. Firms that use renewable energies as a strategic behavior are more competitive.

Keywords: Agricultural industry; strategic behavior; renewable energies; industrial organization theory