Conceptualisations of incumbent firms in sustainability transitions: Insights from organisation theory and a systematic literature review

Thomas Magnusson and Viktor Werner

Business Strategy and the Environment, 2023, vol. 32, issue 2, 903-919

Abstract: Following the tradition of using opposing concepts as a basis for organisational analysis, this article advances a theory‐based understanding of incumbent firms in sustainability transitions. Building on seminal transition studies, we propose innovating/defending and collaborating/competing as two useful spectra to describe organisational behaviours in transitions. Presenting the automotive industry as an explanatory case, we show results from a systematic literature review that reveal motives for diverging behaviours. Combining the spectra into a 2 × 2 matrix, we then introduce four conceptualisations to explain the observed motives and behaviours. The conceptualisations are associated with different streams of organisation theory: dynamic capabilities and the resource‐based view, resource‐dependence theory, neo‐institutional theory and theories on organisational learning and path dependence. Referring to organisational ambidexterity, value configurations and political arenas, we conclude that transitions research can reach a more multifaceted understanding by challenging the prevailing notion of the firm as a coherent actor.

Date: 2023
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