How do sectors change? : The role of incumbents as institutional entrepreneurs

In a societal transition towards sustainability incumbents are often viewed as unwilling or unable to change, or even as actors that intentionally block change processes. This dissertation focuses on the potential role of incumbents in successfully impacting a societal transition towards sustainability by studying the motivations and actions of incumbents acting as institutional entrepreneurs in specific sectors. Which actors take up the role as institutional entrepreneur in the process of sectoral change? Generally the innovation literature points at new innovative firms that try to enter an existing sector with new technologies that radically deviate from the existing knowledge base in the sector: so called discontinuous innovations. It is commonly not expected that insiders or incumbents are a source of discontinuous innovation, as incumbents have strong, vested interests in the existing sectoral innovation system and are therefore not looking for changes that can potentially overthrow this. However, the assumptions regarding the inertia of incumbents might be exaggerated. Several resources related to institutional entrepreneurship are authority, power, legitimacy, and economic capital. Contrary to new innovative firms, incumbents are more likely to possess these resources. Therefore, the focus in this dissertation is on the work incumbents undertake to attempt to enact institutional change. Four case studies have been performed in three different sectors: the greenhouse horticulture sector, the built environment sector (as mature sectors with strongly institutionalized settings) and the bio-plastics sector (as an emerging sector with an emerging institutional setting). Motivations and strategies of incumbents acting as institutional entrepreneurs will likely differ between mature and emerging institutional settings. In mature settings there are clear institutions guiding behavior and limiting change, while emerging settings have more room for actors to create institutions. While there are some methodological differences between the chapters, the overall research design follows a qualitative case study approach. The main finding is that incumbents act as institutional entrepreneurs partly because their view on what constitutes legitimate behavior changes and partly because there are no clear or dominant pressures determining what constitutes legitimate behavior in certain settings. Their view on legitimate behavior can change following their multiple embeddedness in different institutional fields. For instance, several managers placed more importance on sustainability after becoming parents. The lack of clear institutional pressures in emerging fields provides room for institutional entrepreneurs to shape institutions. Incumbents act as institutional entrepreneurs by (un)intentionally pressuring the existing system through collective actions. In projects, collaborations, and strategic alliances the incumbents further develop and diffuse their vision. The success of these collective actions puts pressure on existing sectors. Firms developing discontinuous innovations should be on “making the pie bigger, instead of fighting for the same piece”. As collective actions are important for establishing and diffusing new institutions, there should be legal room for such actions. When deciding to allow or support collective actions, it is crucial to view these actions in light of their contribution to specific sustainability dimensions and to determine whether these actions are discontinuous in nature rather than incremental changes in line with the current system

Uncovering the Strategies of Environmental-Technology Entrepreneurs

Abstract In order to reach a globally sustainable economy transitions are required such as the transition from a fossil-fuel based system to a renewable energy based system. In the analysis of technological transitions innovation scholars have used two different perspectives: the multi-level perspective (MLP) and the technological innovation systems (TIS) framework. In both frameworks entrepreneurs are crucial: as transitions require radical change it is expected that (new) firms that bring new technologies to the market play an important role and that their strategies matter for their own success and the success of the transition process. However, in the TIS and MLP frameworks it remains unclear how entrepreneurs (should) act with respect to facilitating technological transitions. This study combines the entrepreneurship and strategy literature with the TIS and MLP frameworks in order to further conceptualize the role and strategies of entrepreneurs. However, entrepreneurship literature generally does not provide a clear understanding of how entrepreneurs interact with the system context and how entrepreneurs aim to influence the system in which they operate. The combination of these research fields is particularly interesting in order to understand how the system context shapes entrepreneurs on one hand and how entrepreneurs shape the system on the other. Furthermore, this study focuses on a subset of entrepreneurs that start new firms based on environmental-technology innovations, defined as environmental-technology entrepreneurs (ETEs). Environmental technologies have the potential to fulfill our current needs, while simultaneously reducing environmental stress. However, the diffusion of these technologies is likely to encounter specific barriers such as incompatibility with the current institutional system and infrastructure and lack of a compatible financial system. It is therefore expected that ETEs need specific strategies in order to overcome these barriers and increase their chances for success. The main research question of this study is therefore: what strategies are used by entrepreneurs based on the greenness, novelty and extent of diffusion of their technological innovation? Interviews will be conducted with entrepreneurs from different sectors to analyze this question

Uncovering the Strategies of Environmental-Technology Entrepreneurs

Abstract In order to reach a globally sustainable economy transitions are required such as the transition from a fossil-fuel based system to a renewable energy based system. In the analysis of technological transitions innovation scholars have used two different perspectives: the multi-level perspective (MLP) and the technological innovation systems (TIS) framework. In both frameworks entrepreneurs are crucial: as transitions require radical change it is expected that (new) firms that bring new technologies to the market play an important role and that their strategies matter for their own success and the success of the transition process. However, in the TIS and MLP frameworks it remains unclear how entrepreneurs (should) act with respect to facilitating technological transitions. This study combines the entrepreneurship and strategy literature with the TIS and MLP frameworks in order to further conceptualize the role and strategies of entrepreneurs. However, entrepreneurship literature generally does not provide a clear understanding of how entrepreneurs interact with the system context and how entrepreneurs aim to influence the system in which they operate. The combination of these research fields is particularly interesting in order to understand how the system context shapes entrepreneurs on one hand and how entrepreneurs shape the system on the other. Furthermore, this study focuses on a subset of entrepreneurs that start new firms based on environmental-technology innovations, defined as environmental-technology entrepreneurs (ETEs). Environmental technologies have the potential to fulfill our current needs, while simultaneously reducing environmental stress. However, the diffusion of these technologies is likely to encounter specific barriers such as incompatibility with the current institutional system and infrastructure and lack of a compatible financial system. It is therefore expected that ETEs need specific strategies in order to overcome these barriers and increase their chances for success. The main research question of this study is therefore: what strategies are used by entrepreneurs based on the greenness, novelty and extent of diffusion of their technological innovation? Interviews will be conducted with entrepreneurs from different sectors to analyze this question

Towards relevant targets and metrics for a circular economy

In preparation for The Annual World Economic Forum (WEF) meeting in January 2020, PBL Netherlands and Utrecht University, in consultation with PACE, organized an international workshop on targets for a circular economy on the 17th of January 2020. The workshop was attended by more than 30 leading actors from public, private and civil society in Europe. The goal of the workshop was to discuss key dimensions for circular economy targets that go beyond the input of resources and generation of waste. Furthermore, the need for coordination, harmonization and alignment was identified, and a basis was set for further collaboration among the participants with next steps. The recommendations were discussed with Stientje van Veldhoven (Dutch Minister of Housing and Environment) and used as an input to shape the discussion on circular economy metrics at the WEF

Het innovatiesysteem van de Nederlandse glastuinbouw in 2020: marktgerichte innovatiestrategieen

De Nederlandse glastuinbouwsector staat bekend als een innovatieve sector. Uit een eerdere analyse blijkt dat de ondernemers binnen de sector zich vooral bezighouden met procesinnovaties (InnovatieNetwerk/SIGN, 2010). Een procesinnovatie is het implementeren van een nieuwe of sterk verbeterde productiemethode. Deze focus op procesinnovaties is typisch voor een volwassen sector en gaat vaak samen met concurrentie op kosten en lage winstmarges. Samen met de toenemende concurrentie uit het buitenland bedreigt deze focus de economische vitaliteit van de Nederlandse glastuinbouw. Uit eerder onderzoek komen meer marktgerichte innovatiestrategieën naar voren als mogelijkheid om de sector te versterken. Een voorwaarde voor het slagen van deze meer marktgerichte innovatiestrategieën is de ontwikkeling van een innovatieklimaat dat ondernemers hierbij ondersteunt. InnovatieNetwerk en Stichting Innovatie Glastuinbouw Nederland (SIGN) hebben als speerpunt het verbeteren van het innovatieklimaat en het overwinnen van institutionele belemmeringen in de Nederlandse glastuinbouwsector. Ondernemers innoveren binnen de context van een innovatiesysteem. Het glastuinbouwinnovatiesysteem bestaat uit alle actoren, organisaties en alle regels en instrumenten die direct dan wel indirect bijdragen aan het innovatief vermogen van de sector. Voorbeelden van actoren en organisaties zijn tuinders, toeleveranciers, supermarkten, banken en tuinbouworganisaties. Voorbeelden van regelgeving en instrumenten zijn subsidieregelingen, regels met betrekking tot de handel in groenten en gewassen, maar ook de cultuur en gewoonten binnen de sector in bredere zin. De interactie tussen alle actoren en regels bepaalt het falen en slagen van innovatieprocessen. Het huidige innovatiesysteem van de glastuinbouwsector is vrijwel eenzijdig gericht op procesinnovaties, terwijl marktgerichte innovaties te weinig ondersteuning en aandacht krijgen. Een verbetering van het innovatieklimaat kan leiden tot een betere ondersteuning van marktgerichte innovatie, en kan daarmee bijdragen aan de economische vitaliteit van de sector op de lange termijn. Betere ondersteuning van marktgerichte innovaties vergt dus een aanpassing van het innovatiesysteem. In dit rapport proberen we inzicht te krijgen in welke veranderingen precies nodig zijn. De onderzoeksvraag die centraal staat in dit onderzoek is dan ook: Hoe kan het innovatiesysteem van de Nederlandse glastuinbouwsector marktgerichte innovatiestrategieën ondersteunen

Towards relevant targets and metrics for a circular economy

In preparation for The Annual World Economic Forum (WEF) meeting in January 2020, PBL Netherlands and Utrecht University, in consultation with PACE, organized an international workshop on targets for a circular economy on the 17th of January 2020. The workshop was attended by more than 30 leading actors from public, private and civil society in Europe. The goal of the workshop was to discuss key dimensions for circular economy targets that go beyond the input of resources and generation of waste. Furthermore, the need for coordination, harmonization and alignment was identified, and a basis was set for further collaboration among the participants with next steps. The recommendations were discussed with Stientje van Veldhoven (Dutch Minister of Housing and Environment) and used as an input to shape the discussion on circular economy metrics at the WEF