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

• Published in: Research policy Vol. 44; no. 5; pp. 1017 - 1028
• Main Authors: Berggren, Christian, Magnusson, Thomas, Sushandoyo, Dedy
• Format: Journal Article
• Language: English
• Published: Amsterdam Elsevier B.V 01.06.2015; Elsevier Sequoia S.A
• Subjects: Automotive industry; Comparative analysis; Creative accumulation; Market positioning; Marketing; Multilevel perspective; New technology; Niche management; Niche marketing; Pollution control; Research policy; Science policy; Studies; Sustainability; Sustainable development; Technology adoption; Technology strategy; Transition pathways; Trucking industry; Transition pathways; Multilevel perspective; Niche management; Automotive industry; Technology strategy; Creative accumulation
• DOI: 10.1016/j.respol.2014.11.009
• ISSN: 0048-7333; 1873-7625

•Incumbents are active at both regime and niche levels in sustainability transitions.•Technology strategies determine critical niche–regime interactions.•Some incumbents adopt dual strategies, keeping regime and niche technologies separate.•Other incumbents develop integrated strategies and act as niche–regime translators.•Integrated strategies depend on bridging policies that link niches to broader markets. 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 such integrated strategies depends on the emergence of bridging policies. Bridging policies are relevant both for linking early niche markets to broader regime-level markets, and for supporting further technological advancements of niche markets.