Hydropower and Entrepreneurship: Case Studies from Styria

This article examines hydropower as a starting point and strategic resource for the development and longevity of traditional enterprises in Styria. Drawing on three case studies – Herbert Lugitsch u. Söhne Ges. mbH and E-Lugitsch Elektro GmbH, Zellstoff Pöls AG, and Mosdorfer GmbH – the authors analyse how, over decades, these companies secured their success through hydropower (early-mover advantage, strategic diversification, niche positioning/differentiation, expansion, and luck). The study draws on the so-called “Graz approach”, which combines business management (Malik, Chandler, Porter) and historical approaches to illuminate the factors behind entrepreneurial longevity. The findings show that, in addition to water as a resource, entrepreneurial foresight, adaptability, specific strategic decision-making, and sometimes sheer luck were crucial for long-term success.