Model for evaluating the competitive potential of solar PV system installers

Abstract

In the photovoltaic technology market for electricity generation, installers play a crucial role as intermediaries between the production chain and end consumers, significantly influencing technology diffusion. The competitive landscape among photovoltaic system installers is intensified due to the inherent similarities in the solutions offered to customers. This article proposes a model for evaluating the competitive potential for installers of photovoltaic systems. The model employs a performance measurement system based on the Balanced Scorecard (BSC), consisting of strategic objectives and Key Performance Indicators (KPIs) that accurately reflect the priorities of installers determined for enhanced competitiveness. The strategic map of the BSC is refined through collaborative input from installer managers and energy sector specialists. The DEMATEL methodology then delineates cause-and-effect relationships among strategic objectives and allocates their respective weights. Based on the final strategic map of the BSC, the mathematical formulation for the competitiveness performance measurement system was developed. Additive-type aggregation functions that consider cause-and-effect relationships and the weights of strategic objectives were built to reach a final competitiveness index. This analysis of competitive potential furnishes companies with a tool for introspection into internal factors that either enhance or inhibit sales growth. It facilitates strategic monitoring, self-assessment of competitive performance, goal setting, and implementing initiatives to enhance management and operations. The proposed model offers companies an invaluable decision support tool, aiding them in more efficiently strategizing and allocating resources.