Articles MSI - Sine: Environmental jolts, institutional change, and the creation of entrepreneurial opportunity in the U.S. electric power industry

6 important questions on Articles MSI - Sine: Environmental jolts, institutional change, and the creation of entrepreneurial opportunity in the U.S. electric power industry

SIne examines the complex relationship between environmental jolts, field-level search processes, institutional change and the creation of entrepreneurial opportunity. What does Sine argue?

That jolts prompt search processes that erode (uithollen) the taken-for-granted nature of institutions, resulting in the re-evaluation of the costs and benefits of existing structures and the creation of new entrepreneurial opportunities. 

How are environmental jolts defined in Sines study?

As transient perturbations whose occurrences are difficult to foresee and whose impact on organizations are disruptive and often inimical (als voorbijgaande storingen die moeilijk zijn te voorspellen en waarvan de invloed op organisaties storend en vaak vijandig zijn)

What did Sine examine?

The role jolts played in mobilization legislators, academics, technical innovators, and proponents of environmentally-friendly technology, to reform the institutionalized industrial structure of regulated monopolies in the US power industry.
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What is the common primary reaction by actors within an organizational field to environmental jolts? (Sine)

To instigate (aansporen) search processes in which they scrutinize the symptoms of the crisis and look for its causes. Once actors indentify problems and weaknesses with existing institutions, previously institutionalized logics are disrupted and the search for new logics, forms and practices begins.

How does Sine describe the process after a jolt/crisis, like the oil crisis.

Crisis shakes foundations > motivates scrutiny and search processes > powerful actors engage > institutional change > old practices/habits are vulnerable to reform/be replaced.

Describe the history of the US electric power industry  starting at 1935? (Sine)

-Between 1940-1965 the regulated (monopoly) form has been taken for granted
-1965-1972 large power failure: increasing prices and greater level of scrutiny
-It became clear that this development would stay. The many search processes has catalyzed the negative outcomes (high prices, inflexible, inefficient etc.). Critics were heard and considered. 
-A new energy agenda resulted in a new bill (wetsvoorstel). This created enormous opportunities for entrepreneurs: independent power generators have been built etc. 
> In the advent (opkomst) of crisis the dominant regulated monopolies were eroded (aangetast) and alternatives became salient and were adopted.

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