IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v123y2017icp24-34.html
   My bibliography  Save this article

Stretching, embeddedness, and scripts in a sociotechnical transition: Explaining the failure of electric mobility at Better Place (2007–2013)

Author

Listed:
  • Sovacool, Benjamin K.
  • Noel, Lance
  • Orsato, Renato J.

Abstract

Based on field research, interviews, and participant observation, this study explores the failure of Better Place—a now bankrupt company—to successfully demonstrate and deploy battery swapping stations and electric vehicle charging infrastructure. To do so, it draws from concepts in innovation studies, sociotechnical transitions, management science, organizational studies, and sociology. The study expands upon the notion of “fit-stretch”, which explains how innovations can move from an initial “fit” (with existing user practices, discourses, technical form) to a subsequent “stretch” (as the technology further develops, new functionalities are opened up, etc.) in the process of long-term transitions. It also draws from the “dialectical issue life cycle model” or “triple embeddedness framework” to explain the process whereby incumbent industry actors can introduce defensive innovations to “contain” a new niche from expanding. It lastly incorporates elements from design-driven innovation and organizational learning related to schemas and scripts, concepts that illustrate the vision-dependent and discursive elements of the innovation process. It uses the case study of Better Place to test and build upon these concepts. With a market valuation of more than $2 billion, Better Place was poised to become one of the most innovative companies in the electric mobility market. Yet after operating for five years it declared bankruptcy and saw its assets sold off for less than $500,000. We suggest here that Better Place failed because it “stretched” to the point that it “broke;” that it provoked a defensive response from both old automotive manufacturers (such as General Motors) and new ones (such as Tesla); and that the fantastic nature of its visionary scripts convinced its investors and promoters to unrealistically raise expectations and downplay persistent risks.

Suggested Citation

  • Sovacool, Benjamin K. & Noel, Lance & Orsato, Renato J., 2017. "Stretching, embeddedness, and scripts in a sociotechnical transition: Explaining the failure of electric mobility at Better Place (2007–2013)," Technological Forecasting and Social Change, Elsevier, vol. 123(C), pages 24-34.
    • Handle: RePEc:eee:tefoso:v:123:y:2017:i:c:p:24-34
    DOI: 10.1016/j.techfore.2017.05.037
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0040162517307503
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techfore.2017.05.037?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Smith, Adrian & Raven, Rob, 2012. "What is protective space? Reconsidering niches in transitions to sustainability," Research Policy, Elsevier, vol. 41(6), pages 1025-1036.
    2. Andersen, Poul H. & Mathews, John A. & Rask, Morten, 2009. "Integrating private transport into renewable energy policy: The strategy of creating intelligent recharging grids for electric vehicles," Energy Policy, Elsevier, vol. 37(7), pages 2481-2486, July.
    3. Penna, Caetano C.R. & Geels, Frank W., 2015. "Climate change and the slow reorientation of the American car industry (1979–2012): An application and extension of the Dialectic Issue LifeCycle (DILC) model," Research Policy, Elsevier, vol. 44(5), pages 1029-1048.
    4. Dijk, Marc & Orsato, Renato J. & Kemp, René, 2013. "The emergence of an electric mobility trajectory," Energy Policy, Elsevier, vol. 52(C), pages 135-145.
    5. Dijk, Marc & Orsato, Renato J. & Kemp, René, 2015. "Towards a regime-based typology of market evolution," Technological Forecasting and Social Change, Elsevier, vol. 92(C), pages 276-289.
    6. Geels, Frank W., 2014. "Reconceptualising the co-evolution of firms-in-industries and their environments: Developing an inter-disciplinary Triple Embeddedness Framework," Research Policy, Elsevier, vol. 43(2), pages 261-277.
    7. Kley, Fabian & Lerch, Christian & Dallinger, David, 2011. "New business models for electric cars--A holistic approach," Energy Policy, Elsevier, vol. 39(6), pages 3392-3403, June.
    8. Sovacool, Benjamin K. & Jeppesen, Jakob & Bandsholm, Jesper & Asmussen, Joakim & Balachandran, Rakulan & Vestergaard, Simon & Andersen, Thomas Hauerslev & Sørensen, Thomas Klode & Bjørn-Thygesen, Fran, 2017. "Navigating the “paradox of openness” in energy and transport innovation: Insights from eight corporate clean technology research and development case studies," Energy Policy, Elsevier, vol. 105(C), pages 236-245.
    9. Geels, Frank W. & Kern, Florian & Fuchs, Gerhard & Hinderer, Nele & Kungl, Gregor & Mylan, Josephine & Neukirch, Mario & Wassermann, Sandra, 2016. "The enactment of socio-technical transition pathways: A reformulated typology and a comparative multi-level analysis of the German and UK low-carbon electricity transitions (1990–2014)," Research Policy, Elsevier, vol. 45(4), pages 896-913.
    10. Noel, Lance & Sovacool, Benjamin K., 2016. "Why Did Better Place Fail?: Range anxiety, interpretive flexibility, and electric vehicle promotion in Denmark and Israel," Energy Policy, Elsevier, vol. 94(C), pages 377-386.
    11. Budde Christensen, Thomas & Wells, Peter & Cipcigan, Liana, 2012. "Can innovative business models overcome resistance to electric vehicles? Better Place and battery electric cars in Denmark," Energy Policy, Elsevier, vol. 48(C), pages 498-505.
    12. Sovacool, Benjamin K. & Hirsh, Richard F., 2009. "Beyond batteries: An examination of the benefits and barriers to plug-in hybrid electric vehicles (PHEVs) and a vehicle-to-grid (V2G) transition," Energy Policy, Elsevier, vol. 37(3), pages 1095-1103, March.
    13. Penna, Caetano C.R. & Geels, Frank W., 2012. "Multi-dimensional struggles in the greening of industry: A dialectic issue lifecycle model and case study," Technological Forecasting and Social Change, Elsevier, vol. 79(6), pages 999-1020.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sovacool, Benjamin K. & Axsen, Jonn, 2018. "Functional, symbolic and societal frames for automobility: Implications for sustainability transitions," Transportation Research Part A: Policy and Practice, Elsevier, vol. 118(C), pages 730-746.
    2. Attila Havas & Doris Schartinger & K. Matthias Weber, 2022. "Innovation Studies, Social Innovation, and Sustainability Transitions Research: From mutual ignorance towards an integrative perspective?," CERS-IE WORKING PAPERS 2227, Institute of Economics, Centre for Economic and Regional Studies.
    3. Bonaccorsi, Andrea & Apreda, Riccardo & Fantoni, Gualtiero, 2020. "Expert biases in technology foresight. Why they are a problem and how to mitigate them," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    4. Carbajo, Ruth & Cabeza, Luisa F., 2019. "Sustainability and social justice dimension indicators for applied renewable energy research: A responsible approach proposal," Applied Energy, Elsevier, vol. 252(C), pages 1-1.
    5. Han, Jin & Zhou, Haibo & Löwik, Sandor & de Weerd-Nederhof, Petra, 2022. "Building and sustaining emerging ecosystems through new focal ventures: Evidence from China's bike-sharing industry," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    6. Nadejda Komendantova & Sonata Neumueller, 2020. "Discourses about energy transition in Austrian climate and energy model regions: Turning awareness into action," Energy & Environment, , vol. 31(8), pages 1473-1497, December.
    7. Brauers, Hanna & Oei, Pao-Yu, 2020. "The political economy of coal in Poland: Drivers and barriers for a shift away from fossil fuels," Energy Policy, Elsevier, vol. 144(C).
    8. Gruber, Mario, 2020. "An evolutionary perspective on adoption-diffusion theory," Journal of Business Research, Elsevier, vol. 116(C), pages 535-541.
    9. Sovacool, Benjamin K. & Kester, Johannes & Noel, Lance & Zarazua de Rubens, Gerardo, 2020. "Actors, business models, and innovation activity systems for vehicle-to-grid (V2G) technology: A comprehensive review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 131(C).
    10. Yongzhong Wu & Siyi Zhuge & Guoxin Han & Wei Xie, 2022. "Economics of Battery Swapping for Electric Vehicles—Simulation-Based Analysis," Energies, MDPI, vol. 15(5), pages 1-18, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. G. Marletto, 2013. "Car and the city: Socio-technical pathways to 2030," Working Paper CRENoS 201306, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    2. Marletto, Gerardo, 2014. "Car and the city: Socio-technical transition pathways to 2030," Technological Forecasting and Social Change, Elsevier, vol. 87(C), pages 164-178.
    3. Sovacool, Benjamin K. & Axsen, Jonn, 2018. "Functional, symbolic and societal frames for automobility: Implications for sustainability transitions," Transportation Research Part A: Policy and Practice, Elsevier, vol. 118(C), pages 730-746.
    4. Berkeley, Nigel & Bailey, David & Jones, Andrew & Jarvis, David, 2017. "Assessing the transition towards Battery Electric Vehicles: A Multi-Level Perspective on drivers of, and barriers to, take up," Transportation Research Part A: Policy and Practice, Elsevier, vol. 106(C), pages 320-332.
    5. Noel, Lance & Sovacool, Benjamin K., 2016. "Why Did Better Place Fail?: Range anxiety, interpretive flexibility, and electric vehicle promotion in Denmark and Israel," Energy Policy, Elsevier, vol. 94(C), pages 377-386.
    6. Huang, Youlin & Qian, Lixian, 2021. "Consumer adoption of electric vehicles in alternative business models," Energy Policy, Elsevier, vol. 155(C).
    7. Penna, Caetano C.R. & Geels, Frank W., 2015. "Climate change and the slow reorientation of the American car industry (1979–2012): An application and extension of the Dialectic Issue LifeCycle (DILC) model," Research Policy, Elsevier, vol. 44(5), pages 1029-1048.
    8. Geels, Frank W. & Ayoub, Martina, 2023. "A socio-technical transition perspective on positive tipping points in climate change mitigation: Analysing seven interacting feedback loops in offshore wind and electric vehicles acceleration," Technological Forecasting and Social Change, Elsevier, vol. 193(C).
    9. Kriechbaum, Michael & Posch, Alfred & Hauswiesner, Angelika, 2021. "Hype cycles during socio-technical transitions: The dynamics of collective expectations about renewable energy in Germany," Research Policy, Elsevier, vol. 50(9).
    10. Weigelt, Carmen & Lu, Shaohua & Verhaal, J. Cameron, 2021. "Blinded by the sun: The role of prosumers as niche actors in incumbent firms’ adoption of solar power during sustainability transitions," Research Policy, Elsevier, vol. 50(9).
    11. Wesseling, Joeri H. & Bidmon, Christina & Bohnsack, René, 2020. "Business model design spaces in socio-technical transitions: The case of electric driving in the Netherlands," Technological Forecasting and Social Change, Elsevier, vol. 154(C).
    12. Papachristos, George, 2017. "Diversity in technology competition: The link between platforms and sociotechnical transitions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 73(C), pages 291-306.
    13. Steen, Markus & Weaver, Tyson, 2017. "Incumbents’ diversification and cross-sectorial energy industry dynamics," Research Policy, Elsevier, vol. 46(6), pages 1071-1086.
    14. Nihit Goyal & Michael Howlett, 2018. "Technology and Instrument Constituencies as Agents of Innovation: Sustainability Transitions and the Governance of Urban Transport," Energies, MDPI, vol. 11(5), pages 1-14, May.
    15. Michael Naor & Alex Coman & Anat Wiznizer, 2021. "Vertically Integrated Supply Chain of Batteries, Electric Vehicles, and Charging Infrastructure: A Review of Three Milestone Projects from Theory of Constraints Perspective," Sustainability, MDPI, vol. 13(7), pages 1-21, March.
    16. Mäkitie, Tuukka & Normann, Håkon E. & Thune, Taran M. & Sraml Gonzalez, Jakoba, 2019. "The green flings: Norwegian oil and gas industry’s engagement in offshore wind power," Energy Policy, Elsevier, vol. 127(C), pages 269-279.
    17. Nair, Sujith & Paulose, Hanna, 2014. "Emergence of green business models: The case of algae biofuel for aviation," Energy Policy, Elsevier, vol. 65(C), pages 175-184.
    18. Sovacool, Benjamin K. & Kester, Johannes & Noel, Lance & Zarazua de Rubens, Gerardo, 2020. "Actors, business models, and innovation activity systems for vehicle-to-grid (V2G) technology: A comprehensive review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 131(C).
    19. Geels, Frank W., 2020. "Micro-foundations of the multi-level perspective on socio-technical transitions: Developing a multi-dimensional model of agency through crossovers between social constructivism, evolutionary economics," Technological Forecasting and Social Change, Elsevier, vol. 152(C).
    20. Johan Miörner & Jonas Heiberg & Christian Binz, 2021. "Global regime diffusion in space: a missed transition in San Diego’s water sector," GEIST - Geography of Innovation and Sustainability Transitions 2021(08), GEIST Working Paper Series.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:tefoso:v:123:y:2017:i:c:p:24-34. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.sciencedirect.com/science/journal/00401625 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.