Incumbent Actors in Sectoral Transformations Towards Sustainability : A sociotechnical study of the European heavy commercial vehicles sector

Abstract: Industrial sectors need to be transformed in response to the increasing demands for environmental sustainability as one of the greatest challenges in the modern times. In social science research, extensive efforts have been made over the recent decades to formulate comprehensive theories about transformation of various sectors such as energy, manufacturing, agriculture, food and transportation. Accordingly, ‘sustainability transitions’ have emerged as a research field dedicated to the study of far-reaching sociotechnical transformations.Understanding sectoral transformations and how different actors can get involved in sustainability transitions are in the heart of these efforts. Of particular importance is the involvement of industry incumbents that hold established positions and considerable amounts of knowledge, resources, and technological competence built upon vigorous structures of the existing industrial setup. This in turn calls for more attention to the role of incumbents to actively participate in the transformation of established sectors towards sustainability.However, despite the potentials to get involved in processes of transformative change, incumbents are often neglected in transition theories, and their role is predetermined to resist the change. Incumbents are widely black-boxed as a homogenous group of actors to the extent that they are conceived as a single entity whose predefined role is to act as the guardians of the existing structures and defenders of the status-quo. While there are legitimate concerns about the power of incumbent firms, such one-sided views do not offer an inclusive approach in formulating multi-actor processes for sustainability transitions. Therefore, the purpose of this thesis is to contribute to a more comprehensive theorization on the role of incumbent actors in sectoral transformations. The main research question is formulated as follows: how can incumbents act to facilitate sectoral transformations towards environmental sustainability?In answering this research question, the thesis offers an alternative perspective to the dominant view about incumbents in sustainability transition theories. It challenges prevailing assumptions by providing empirical evidence from the heavy commercial vehicles sector in Europe. The research findings show that incumbents are able to adopt various technological strategies ranging from incremental innovations with highly coordinated actions for reducing emission levels based on the established technologies, to the adoption of radical technological choices for introducing alternative propulsion technologies in the market. In fact, the strong position of incumbents can sometimes enable them to introduce radical innovations in established markets. The research findings also indicate that incumbents can act as learning agents or knowledge repositories to overcome the problem of isolation for new technological innovations by transferring knowledge and technologies over the boundaries of time and space. Moreover, incumbents can facilitate diffusion of radical innovations and ramp up the adoption of new technologies through standardization at the industry level.  In addition, incumbents from a range of different sectors have been recognized as integrators for the development of new technological solutions that span over traditional boundaries. Hence, new industrial sectors can emerge through the integration of knowledge and technologies from various established sectors, and incumbents are at the heart of the integration processes due to their knowledge and familiarity of the established sectors.Finally, the theoretical implications from the thesis invite transition scholars to reconsider the role of incumbent actors in sustainability transitions, while the practical implications suggest that policy-makers need to pay more attention to the diversity of technology strategies of incumbent firms and their alignments for sectoral transformations towards sustainability.