Business model innovation in demand response firms: Beyond the niche-regime dichotomy

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Volume Title

A1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä

Date

2021-06

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Mcode

Degree programme

Language

en

Pages

17
1-17

Series

Environmental Innovation and Societal Transitions, Volume 39

Abstract

Demand response (DR) is an innovation emerging at the intersection of the energy and information and communications technology sectors. This paper aims to investigate the drivers of—and differences in—business model innovation (BMI) behaviours of firms operating in these two interacting industries. Results from 22 semi-structured interviews with representatives of Finnish DR companies show that external drivers of BMI include regulation, competition, and the demise of the telecom industry following the fall of Nokia. Whereas technology start-ups and companies from adjacent industries are motivated by entrepreneurial opportunities, incumbent energy companies are driven by the threat of losing their existing customers and need to increase efficiency. The BMI behaviours observed do not fall neatly into the often-used dichotomous categories of niche/new entrant and regime/incumbent, as firms show behaviours from both extremes. To overcome this binary thinking, we propose a morphological box model that represents the extreme states of firm BMI while allowing for flexibility.

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Keywords

Business model, Sustainability transition, Demand-side management, Sectoral reconfiguration, Multi-technology interaction

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Citation

Ruggiero, S, Kangas, H-L, Annala, S & Lazarevic, D 2021, ' Business model innovation in demand response firms : Beyond the niche-regime dichotomy ', Environmental Innovation and Societal Transitions, vol. 39, pp. 1-17 . https://doi.org/10.1016/j.eist.2021.02.002