The importance of internal alignment in smart city initiatives: An ecosystem approach

Within the growing literature on smart cities, much research has focused on issues related to the formation stage of these initiatives. After initial subsidies expire, however, a number of smart city initiatives face problems with respect to value creation and value capture. To analyse these processes, the paper links value creation (i.e. activities focusing on innovation challenges) to value capture (i.e. activities referring to actual individual firm-level profit generation) in smart city initiatives. Based on an in-depth survey of the literature, the purpose of the paper is to better understand how processes of internal alignment foster value creation and value capture during the growth of smart city initiatives. By focusing on the determinants of internal alignment facilitating value creation and value capture, the paper examines these determinants in the context of four smart city initiatives in the Netherlands in 2016. The paper shows that internal alignment of actors aimed at integrating joint and business objectives is critical for the growth of smart city initiatives. From the theoretical view point, the paper points at challenges concerning internal alignment of different actors in the smart city initiative after the formation stage. From the managerial point of view, it becomes increasingly important to manage expectations of different partners and their learning efforts to account for internal alignment during the growth of the smart city initiative.