Transition pathways revisited: Established firms as multi-level actors in the heavy vehicle industry

Abstract

The multi-level perspective on sustainability transitions positions established firms (incumbents) as defenders of existing technologies at the "regime level". By contrast, it positions new entrants at the niche level, as promoters of new technologies. This paper challenges the positioning of firms as actors on either regime or niche levels. Based on a comparative analysis of technology strategies in the heavy vehicle industry, the paper shows that established firms are active at both levels, developing several technology alternatives simultaneously. This means that incumbents' technology strategies determine important parts of the required niche-regime interactions. The paper also shows how incumbents may pursue contrasting technology strategies. While some adopt a dualistic approach, keeping regime and niche level activities technologically and commercially separate, others develop integrated strategies where niche activities are leveraged to impact upon the regime level. The cases studied illustrate how the success of these integrated strategies depends on the emergence of bridging policies. Such policies are relevant both for linking early niche markets to broader regime-level markets, and for supporting the further technological advancements of niche markets.

Incumbents’ diversification and cross-sectorial energy industry dynamics

“…What several recent studies illustrate, however, is that the responses by incumbents is highly heterogeneous (e.g. Lauber and Sarasini, 2015, Geels et al, 2016, Berggren et al, 2015. This underscores the need for closer scrutiny of incumbents' (potential) roles in industry transformation processes associated with sustainability transitions.…”

“…However, some incumbent firms are capable of handling multiple technological paths (Bergek and Onufrey, 2014). Within the heavy vehicle transport sector Berggren et al (2015) illustrate how incumbents pursue contrasting technology strategies whereby both 'regime' and 'niche' technologies are developed simultaneously. Wesseling et al (2015) Karltorp and Sandén (2012) increasing firm divergence from a dominant technological path (or 'regime fragmentation') may indicate regime destabilization.…”

Niche experiments with alternative powertrain technologies: the case of electric city-buses in Europe

“…To be able to attain this role, actors need to be able to speak the language of both the niche level as well as that of the established sociotechnical regime level. This role could be taken by the industry incumbents who also engage in the development of new technologies at the niche level (Berggren et al, 2015).…”

Oceans of energy? The non-linear trajectory of the emerging wave energy technology

“…Thus, regime actors are increasingly involved in niche activities (Bergek et al, 2013;Richter, 2013;Fontes et al, 2012). However, there is still limited empirical evidence of the actual impact of their active presence in the niche trajectory (Berggren et al, 2015).…”