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Business Strategies of Incumbents in the Market for Electric Vehicles : Opportunities and Incentives for Sustainable Innovation

Wesseling, J. H. LU ; Niesten, E. M M I; Faber, J. and Hekkert, M. P. (2015) In Business Strategy and the Environment 24(6). p.518-531
Abstract

This paper focuses on the relation between large car manufacturers' incentive and opportunity to innovate and their electric vehicle (EV) business strategies. We analyze how environmental regulation and the firm's incentive (measured by net income) and opportunity to innovate (measured by EV asset position, determined from a combination of patent, partnership and prototype data) affected EV sales over the period 1990-2011. During the EV's R&D period in the 1990s, large car manufacturers that were regulated by the full zero emission vehicle mandate developed a significantly stronger EV asset position, but did not sell significantly more EVs than their rivals. During the EV's commercialization period (2007-2011), large car... (More)

This paper focuses on the relation between large car manufacturers' incentive and opportunity to innovate and their electric vehicle (EV) business strategies. We analyze how environmental regulation and the firm's incentive (measured by net income) and opportunity to innovate (measured by EV asset position, determined from a combination of patent, partnership and prototype data) affected EV sales over the period 1990-2011. During the EV's R&D period in the 1990s, large car manufacturers that were regulated by the full zero emission vehicle mandate developed a significantly stronger EV asset position, but did not sell significantly more EVs than their rivals. During the EV's commercialization period (2007-2011), large car manufacturers with both a strong incentive and a strong opportunity to innovate sold significantly more EVs. Based on these results, the paper offers a typology of business strategies, several managerial implications, and recommendations for policy makers to stimulate sustainable development.

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Please use this url to cite or link to this publication:
author
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Business strategy, Electric vehicle, Environmental policy, Incumbents, Radical innovation, Sustainable development
in
Business Strategy and the Environment
volume
24
issue
6
pages
14 pages
publisher
John Wiley & Sons
external identifiers
  • Scopus:84942366818
ISSN
0964-4733
DOI
10.1002/bse.1834
language
English
LU publication?
no
id
9b0a4a31-9ee1-4654-a89c-bd47dedbdf1c
date added to LUP
2016-05-18 13:20:44
date last changed
2016-11-14 11:58:12
@misc{9b0a4a31-9ee1-4654-a89c-bd47dedbdf1c,
  abstract     = {<p>This paper focuses on the relation between large car manufacturers' incentive and opportunity to innovate and their electric vehicle (EV) business strategies. We analyze how environmental regulation and the firm's incentive (measured by net income) and opportunity to innovate (measured by EV asset position, determined from a combination of patent, partnership and prototype data) affected EV sales over the period 1990-2011. During the EV's R&amp;D period in the 1990s, large car manufacturers that were regulated by the full zero emission vehicle mandate developed a significantly stronger EV asset position, but did not sell significantly more EVs than their rivals. During the EV's commercialization period (2007-2011), large car manufacturers with both a strong incentive and a strong opportunity to innovate sold significantly more EVs. Based on these results, the paper offers a typology of business strategies, several managerial implications, and recommendations for policy makers to stimulate sustainable development.</p>},
  author       = {Wesseling, J. H. and Niesten, E. M M I and Faber, J. and Hekkert, M. P.},
  issn         = {0964-4733},
  keyword      = {Business strategy,Electric vehicle,Environmental policy,Incumbents,Radical innovation,Sustainable development},
  language     = {eng},
  month        = {09},
  number       = {6},
  pages        = {518--531},
  publisher    = {ARRAY(0x8f5bfa0)},
  series       = {Business Strategy and the Environment},
  title        = {Business Strategies of Incumbents in the Market for Electric Vehicles : Opportunities and Incentives for Sustainable Innovation},
  url          = {http://dx.doi.org/10.1002/bse.1834},
  volume       = {24},
  year         = {2015},
}