From gas to electricity

: institutional innovation in the German automotive industry

Abstract

The shift of the German automotive industry toward electric mobility is a multi-faceted transition. This research aims to uncover the shift’s triggers by examining actors, field- configuring events and exogenous jolts of the past decade through the lens of institutional theory, empirically building upon expert interviews and grey literature. Because the industry comprises deeply entrenched institutions, these present obstacles to change and underscored the slow shift among German manufacturers. Their worldwide renowned expertise in internal combustion engines and economic success bound them within a golden cage. Germany's economic dependence on industry allowed them political influence. Findings revealed that a combination of political, economic and social factors acted as triggers. Foremost, fleet emission regulations pushed manufacturers toward electric vehicles, specifically as the diesel scandal dismantled the diesel engine's institutional dominance. Simultaneously, the threat of losing the Chinese market and increasing competition put pressure on the manufacturers. Consumer adoption grew and amplified awareness of climate change due to a social movement, financial incentives, advancing technology, increasing car models, and improved charging infrastructure. The occurring institutional innovation was not spurred by radical innovation but by an interplay of sudden, as well as incremental developments. It is reshaping institutionalized practices and has introduced opportunities for novel business models, reflecting the evolving landscape of mobility.

Date of Award	20 Oct 2023
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Georg Reischauer (Supervisor)