Using dynamic capabilities to shape markets for alternative technologies : A comparative case study of automotive incumbents

This paper analyzes how incumbent firms act to shape markets for new technology alternatives. It introduces a framework that highlights important linkages between the dynamic market-shaping capabilities of individual firms and market-shaping processes on a system level. The framework is used to analyze the endeavors of two large heavy vehicle manufacturers to introduce two technology platforms-electrified trucks and trucks fueled by liquefied gas-as alternatives to traditional diesel-fueled trucks. The analysis shows how incumbent firms deploy market-shaping capabilities to claim legitimate positions in envisioned future markets. The paper concludes by pointing to the dynamism of market interactions in sustainability transitions, showing how firms induce system-level reconfigurations and how such reconfigurations induce changes at the level of the firm.Funding Agencies|Energimyndigheten [P46351-1]; Riksbankens Jubileumsfond [P18-0588-1]