Solar business model adoption by energy incumbents

The Importance of Strategic Fit

Bibliographic Data

ID7445255
AuthorsMaria Altunay (0000-0002-7968-8180, corresponding author), Anna Bergek (0000-0003-1952-902X), Alvar Palm (0000-0001-6203-1302)
Year2021
Volume40
Pages501-520
Publication date2021-09-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueEnvironmental Innovation and Societal Transitions (JOURNAL)
Journal identifiersISSN: 2210-4224 • E-ISSN: 2210-4232
PublisherElsevier BV (PUBLISHER)
DOI10.1016/j.eist.2021.10.013
OpenAlexW3208396570
LanguageEN
Citations received11
References cited92

This paper answers recent calls to give more attention to the business strategies of incumbent actors regarding innovation and socio-technical transitions. We map the solar business model adoption of 30 Swedish electric utility incumbents and examine to what extent it can be explained by the strategic fit with the utilities' established business models, corporate strategies, and external environment. We find that all three dimensions need to be considered in order to explain adoption. Alignment with the established business model is mainly important concerning activities, resources, and partnerships, and utilities also re-configure solar models to increase this alignment (e.g. through outsourcing). However, it is not the main driver for adoption. Instead, incentives and pressures related to corporate strategies and external environment induce or block retailers from adopting solar models. By demonstrating the importance of strategic fit, these findings provide a more nuanced understanding of industry incumbent's strategies in relation to emerging technologies

Business · Business model · Economics · Incentive · Industrial organization · Microeconomics · Order (exchange · Outsourcing · Strategic management · Global Energy and Sustainability Research · Social Acceptance of Renewable Energy · Sustainability and Climate Change Governance · Marketing

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Open DOIOpen Access