The Renewable Energy Industry in Europe: Business and Internationalization Models. A Focus on the Chinese Market

Purpose The chapter aims to examine the number, type, and international presence of European companies (Italian, Spanish, French, German, Dutch, Rumanian, Bulgarian, and English) operating in the renewable energy industries, as well as Chinese companies. Through the analysis of two businesses that have established partnerships and a wholly foreign owned enterprise (WFOE) in China, the chapter identifies the main elements of their management strategies that led to successful operation in China. Methodology/approach To analyze the main characteristics and the internationalization of the European firms operating in the renewable energy industry, we collected information from secondary data. To identify the successful business models to operate successfully in China, we adopted a qualitative case study approach, based on direct interviews and information published on the company websites and articles found on the web. Findings European enterprises encounter difficulties in approaching the Chinese market, which is rapidly developing as a result of the latest five-year plan setting energy and climate change targets and policies. Indeed, the number of European firms investing in China is low. Through the analysis of two business cases (Asja and Caleffi) that have established partnerships and a WFOE in China, the chapter identifies the main elements of their management strategies that led to successful operation in China. Research limitations The relatively small number of cases (two) limits the generalizability of our findings. However, we are convinced that the size of our case companies and their experience in China mean our results are well grounded, although more research is needed. Originality/value To the best of our knowledge, this is the first study that has explored the business models adopted by European firms operating in the renewable energy industry in China.