26th International Association for Management of Technology Conference - IAMOT 2017

Abstract Following a sequence of oil price hikes in the 1970s, the USA needed to address the challenges of high-energy costs and inefficiencies in its use. Since the USA was by far the largest energy consumer As in the World and reliant on imported energy, the policy makers realized that in addition to the increasingly serious environmental pollution related to energy consumption, energy inefficiency directly threatened the country’s energy security. In the 1980s, a market-oriented mechanism to implement, promote and improve energy efficiency emerged and the energy service sector and companies (ESCOs) appeared. Through a nearly 30-year development process, US energy service sector is widely seen as a successful model for private sector delivery of energy-efficiency technologies and services (Goldman et al, 2005). The study of the energy service sector and ESCOs in the USA have attracted many researchers. Goldman and Dayton (1996) conducted a study to identify market trends in the sector. Vine et al (1999) evaluated the US ESCO industry. Goldman et al, (2005) analysed market trends in the sector with empirical analysis of project data. While the existing literature on the sector and ESCOs is scarce, it is still extremely informative (Okay, 2008). This paper reports on a study of a sample of 112 US ESCOs which are qualified by the US Department of Energy through the perspective of their product portfolios. Our main source is based on secondary data from the companies’ official websites and the Department of Energy. The product portfolio of an ESCO not only helps it to achieve its strategic objectives, but also to improve its competence and competitiveness in an increasingly fiercely competitive market. In this paper, we show where the companies are located, whether they operate in multiple locations and draw a map of the range of products and services they offer which constitutes their product portfolio. This paper makes a contribution to the academic literature by expanding research of the ESCOs sector in the U.S from perspectives of locations and product portfolio. It also makes a contribution to business practice as it benchmarks product portfolios and helps to identifying new products and technologies which could assist with new innovation and improvement of positioning within the sector. Further research on product portfolio management, qualitative data collection and analysis are needed in developing countries to enhance their energy efficiency strategies. The focus of this study makes our findings very relevant for ESCOs, investors in the energy and energy services sectors and policy makers in developing countries.