| Recent changes in U.S. energy policy have prompted the growth of the bio energy market. The ability to quickly enter and respond to the opportunities of this market is critical to an agribusiness’ success. Understanding entry into this rapidly growing bio energy market, however, is not well understood. In drawing on management theories of the Resource Based View (RBV) and that of Organizational Ecology, this study develops a conceptual and dynamic programming model to explain the entry behaviors of different types of bio energy businesses. A contribution of this study is it demonstrates that bio energy entry decisions emphasize a basic trade-off involving gains from a commitment to specialized, and correspondingly higher cost assets, and gains from... |
