A qualitative study of Norwegian firms diversifying into the emerging offshore wind industry

Abstract

Diversification endeavours into emerging industries is one of the riskiest and yet most promising strategic actions firms can take. In spite of this compelling nature, we identify a research gap concerning diversification in the emerging industry context. By conducting a qualitative, multilevel analysis of eight Norwegian firms diversifying into the emerging offshore wind industry, we contribute to the diversification research stream by applying concepts from emerging industry theory.

First, we address two different approaches to timing of entry, based on whether a firm has a long-term or short-term ambition for their industry presence. Secondly, the prerequisite of a proven track record is addressed, furthering the importance of, but also surprising challenges, associated with competency relatedness between a firm's established industries and the targeted emerging industry. Lastly, we identify three different paces of technological evolution that a firm can encounter after industry entry. The thesis contributes to the extant diversification literature by introducing a framework that illustrates the relationship between timing of entry, level of competency relatedness and pace of technological evolution, when diversifying into an emerging industry.