Exploring the relation between socio-technical regime dimensions and business model innovation.

Abstract

The link between actor level business activities and system level transitions is underexposed in the academic literature. This research aimed to expose these linkages in a case study. The case study focused on the transition towards electric mobility in the Dutch automotive regime. It explored the relationship between changes in the regime and business model innovation. It used the multi-level perspective to operationalize the regime. It used the six regime dimensions; policy, technology, science, culture, market and industry. The influences were tested per regime dimensions on innovation in three concepts of the business model, value proposition, value network and value capture. Qualitative data was gathered through fourteen interviews, with interviewees representing companies with innovative business model active in the electric vehicle sector. With companies providing mobility goods, mobility services, complementary goods and complementary services, the sample was an full representation of the electric vehicle sector. The findings showed the regime dimension had significant influence on business model innovation. Also they exposed that business model innovations also influenced the regime dimensions. Various examples were provided in which business model innovations destabilized the regime. The author of this research therefore proposes to expand the multi-level perspective with a seventh regime dimension, in which the business activities on actor level are described. This would allow deeper insights in transition, as it prevents the actor level business activities to be overlooked. Other recommendations that followed from the data were the inclusion of geographical demarcation and adjacent industries in the multi-level perspective.