Abstract
Technological capability study has continued to gain ground as recognisable progress is being made in the resource-based view (RBV) theory. As a matter of fact, it has become more relevant in the context of a developing nation, such as Nigeria, as a means to create economic development. Using the Panda and Ramanathan methodology for measuring technological capability (TC) in the electric sector, this paper adopted the indicators from the paper to investigate the effects of factors affecting TC on the Nigerian solar energy firms’ TCs. The results of seemingly unrelated regressions showed that both internal and external factors significantly affect technological capability in the solar energy industry in different directions, but similar directions to organizational capability of the solar energy firms’ in Nigeria.
Highlights
The introduction of renewable energy technologies (RETs) to address the problem of incessant supply and poverty of electricity in both urban and rural areas has been an international development strategy in the developing countries (Tigabu et al, 2015)
This was reiterated by Vidican (2012) that development of indigenous technological capability in solar energy technologies is required for developing countries to catch-up or leap-frog the developed counter-part
Technological capability development in the electricity firm is affected by a number of factors out of which the following internal and external factors were considered based on the approach of Panda and Ramanathan (1996)
Summary
Panda and Ramanathan (1996) opined that the most important task for utilities dealing with electricity in the world especially the developing countries, such as Nigeria, besides financing, seems to be the development of indigenous technological capability. This was reiterated by Vidican (2012) that development of indigenous technological capability in solar energy technologies is required for developing countries to catch-up or leap-frog the developed counter-part. It was inferred from Akinbami (2001) and Akarakiri et al (2010) for Nigeria that building technological capability in solar energy technologies become imperative for the indigenous firms in order to provide sustainable electricity supply in the country
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