Leveraging resource allocation for facilitating renewable energy technology innovation: A configurational perspective

Abstract

Many antecedents of renewable energy technology innovation (RETI) have been examined independently; less is known about how these antecedents combine to affect RETI. Drawing on the resource-based view and resource orchestration theory, we conceptualize management compensation incentives, equity incentives, and gender diversity as resource allocation levers that motivate and guide resource toward RETI. Using a sample of Chinese renewable energy firms, we develop a configurational framework and draw on fuzzy-set qualitative comparative analysis to investigate how these levers combine to facilitate RETI across different innovation subjects (e.g., firms with different size and financial performance) and innovation environments (e.g., different economic development level, industry competition, and environmental regulation). Our results identify four high-level configurations that can facilitate RETI by tailoring resource allocation levers to innovation subject and innovation environment. Comparing the high-level configurations with the low-level configurations, we find that the same lever in different configurations may yield the opposite effect. We also find that even lacking innovation-conducive environments, firms can still achieve high-level RETI by using tailored levers. These findings guide renewable energy firms on how to promote RETI by utilizing internal levers effectively when facing different situations.