Transition towards Electric Mobility: The role of Business Model Innovation for Electric Vehicle Charging in Germany

Abstract

The prevailing mobility system is in a transitional phase, whereby emerging technologies such as fast charging infrastructure for electric vehicles become an eminent factor for the success of systemic change. Simultaneously, business model innovation (BMI) is increasingly seen as a mean to promote sustainable production and consumption. Whilst business model components concern the focal firm as well as their networks, the role of businesses in wider transformative processes, such as the conceptualisation of the technological innovation system (TIS), remains unclear. This research addresses the delineated issue by combining BMI components (value proposition, value network and value capture) with the concept of the TIS of fast charging. A theoretical framework depicts the role of BMI and its influences on the TIS, in a socio- technical transition process. Based on the case study of fast charging infrastructure in Germany, a dynamic structural-functional assessment of the innovation system revealed systemic weaknesses. The analysis of 18 conducted expert interviews, with businesses being engaged in the establishment of fast-charging infrastructure allowed to identify sources of inertia for BMI, which can be overcome by alterations of the TIS structure. The findings show that an integration of the firm-perspective can decrease redundant activities of actors and ameliorate the effectiveness of resource mobilisation. Subsequently, coordination efforts are regarded as an enhancing factor for the functionality of the system: If businesses are included in the earlier formative stages of the TIS, structural misconceptions are avoided and system performance is benefited throughout. The findings have led to business and policy recommendations.