![]() I would like to thank my supervisor Birthe Soppe, Assistant Professor at the Centre for Entrepreneurship (UiO) for good inputs during the working process and for introducing me to institutional theory. ![]() Vħ Acknowledgements This thesis represents the final work of the master degree in Innovation and Entrepreneurship at University of Oslo, Norway. Implications of the study and suggestion for further research are given. Furthermore, the study offers insight into the moderating role of cognitive framing and institutional context on the environmental regulation - firm response relationship. This thesis contributes to the understanding of firms responses to a new environmental regulation, by demonstrating the importance of addressing perceptual and contextual variables associated with a new environmental regulation, beyond just the environmental regulation per se. Using empirical data from five of the largest hydropower producers, combined with a contextual analysis, I explored how the three perceptual regulatory variables and the institutional context influenced HP producers responses to the WFD. After developing the theoretical framework, the conceptual model and associated propositions were assessed through a case study of the Norwegian hydropower industry and the Water Framework Directive (WFD) in an early phase of implementation. ![]() Furthermore, it explores how this interplays with the institutional context in which the firms are embedded. Specifically this thesis explores how cognitive framing and perceptions of (i) the environmental regulation itself, (ii) the implementation process and (iii) regulatory uncertainty influence firms responses. When faced with a new environmental regulation firms may engage, or not engage, in a range of business or political activities depending on how they perceive the regulation, and the overall context in which they operate. ![]() Literature on cognitive framing and strategic issue interpretation is combined with institutional theory to develop a theoretical framework, with emphasis on natural resources based incumbents, and a conceptual model is presented. 1 Firms responses to a new environmental regulation: the role of cognitive framing and institutional context MSc in Innovation and Entrepreneurship Line Johanne Barkved January 30 th 2013ģ Firms responses to a new environmental regulation: the role of cognitive framing and institutional context MSc in Innovation and Entrepreneurship University of Oslo Line Johanne Barkved January 2013 IIIĤ Copyright Line Johanne Barkved 2013 Firms responses to a new environmental regulation: the role of cognitive framing and institutional context Line Johanne Barkved Print: Reprosentralen, University of Oslo IVĥ Abstract This study contributes to the understanding of how firms respond to a new environmental regulation, and how cognitive framing and institutional context influence firms responses. ![]()
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