Overcoming the Investment Gap: A Multiple Case Study of Strategy Development in Swedish Water & Wastewater Organisations

Abstract

Sweden grapples with a critical issue: its extensive water infrastructure is nearing the end of its lifespan. While investment shortfalls increase this challenge, concerns linger about the potential mismanagement of existing assets. This research investigates how Swedish water utilities are strategically managing their ageing infrastructure. By exploring their utilisation strategies, the study aims to identify the challenges in managing the assets leading to the investment gap.


This study employs a multi-case study approach of five Swedish water and wastewater organisations to explore the strategic infrastructure challenges in the Swedish context. The research explores how strategy is conducted in practice to face the current challenge by analysing interview data from key stakeholders, managers and experts. The approach combines infrastructure asset management and the resource-based view in the organisation's context to analyse the current state.

Utilising the four different strategy lenses of design, variety, experience, and discourse, we conclude that even though organisations have different local conditions and prioritisation, water systems have similar strategic challenges. Organisations require increased economic control to get political support. National discourse has a widespread effect on this as well. General discourse on IAM is not widespread or utilised by practitioners. Organisations must establish focus by breaking down the challenge with clear guiding policies.

Smaller organisations have a better focus but face the threat of not having enough resources to face the increased requirements. Municipalities with more urgent needs have better cohesion and less misalignment regarding finance and prioritisation but lack the resources and capabilities to strategise. Opportunities in organisations are that past truths are challenged with new expertise entering the sector. A holistic approach to asset control fosters synergy and system efficiency. However, human resources remain a significant challenge, with a universal need for increased capacity. This calls for better cohesion between all actors, which is lacking in the sector. This suggests that the system is in need of a holistic approach in approaching strategic work within municipalities, the water and wastewater system could benefit from clearer asset requirements.

Keywords infrastructure asset management, water utilities, investment gap, public sector strategy

Popular Abstract

Sweden's Water Crisis: Aging Infrastructure and the Path Forward

Sweden is facing a significant challenge: its extensive water infrastructure, vital for daily life and economic stability, is reaching the end of its lifespan. Insufficient investment and a changing environment deepen this problem. This recent study dives into how Swedish water utilities strategically tackle this issue, aiming to identify the hurdles in managing these assets and understanding the investment gap.

Urban water management in Sweden is a relatively under-researched area, particularly municipalities' strategies for managing their water utilities. To address this, researchers conducted a multi-case study involving five Swedish water and wastewater organisations. By interviewing key stakeholders, managers, and experts, the study sheds light on the practical strategies these utilities use to confront their ageing infrastructure.

The research framework integrates infrastructure asset management with the resource-based view within organisational contexts. This dual approach helps analyse the current state of Sweden’s water systems. The study reveals common strategic challenges despite differing local conditions and priorities among the organisations.

One significant finding is the need for increased economic control to gain political support. The national discourse significantly influences this, yet a general discussion on infrastructure asset management (IAM) is not widespread or utilised effectively by practitioners. Organisations must break down the overarching challenge into clear guiding policies to establish a focused strategy.

Smaller organisations tend to have a better focus on their strategies but often lack the necessary resources to meet increasing requirements. Conversely, municipalities with more urgent needs display better cohesion and less financial misalignment but struggle with strategising due to limited resources and capabilities. The influx of new expertise into the market challenges outdated practices, offering opportunities for improvement.

A holistic approach to asset management can create synergy and improve system efficiency. However, human resources pose a significant challenge, with a universal need for increased capacity. The study highlights the necessity for better cohesion among all actors within the sector, suggesting that a clearer definition of asset requirements could greatly benefit the water and wastewater systems.

In conclusion, addressing Sweden’s water infrastructure crisis requires a comprehensive, well-coordinated approach. By aligning strategies, increasing economic control, and fostering a national discourse on IAM, Swedish municipalities can navigate these challenges more effectively and secure a sustainable future for their water utilities.

• author: Svedberg, Siri and Ahlborg, Oskar
• supervisor: Bertil Nilsson
• organization: Department of Mechanical Engineering Sciences; Production Management
• alternative title: Overcoming the Investment Gap
• course: MIOM05 20241
• year: 2024
• type: H2 - Master's Degree (Two Years)
• subject: Technology and Engineering
• keywords: infrastructure asset management, water utilities, investment gap, public sector strategy
• other publication id: 24/5281
• language: English
• id: 9163562
• date added to LUP: 2024-06-24 09:44:47
• date last changed: 2024-06-24 09:44:47