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Open AccessJournal ArticleDOI

Business model innovation for sustainable energy: German utilities and renewable energy

Mario Richter
- 01 Nov 2013 - 
- Vol. 62, Iss: 62, pp 1226-1237
TLDR
In this article, the authors investigated utilities' business models for renewable energies by analyzing two generic business models based on a series of in-depth interviews with German utility managers and found that utilities have developed viable business model for large-scale utility-side renewable energy generation.
About
This article is published in Energy Policy.The article was published on 2013-11-01 and is currently open access. It has received 313 citations till now. The article focuses on the topics: Feed-in tariff & Renewable energy credit.

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Fifteen years of research on business model innovation : how far have we come, and where should we go?

TL;DR: In this paper, the emerging business model innovation literature addresses an importa-tation of business models to management research and among practitioners, and the emerging BMI literature addresses the importa...
Journal ArticleDOI

How renewables will change electricity markets in the next five years

TL;DR: In this article, the authors discuss conflicts of interest; hurdles and drivers; opportunities; and traps for this perspective, and discuss how to manage loads and achieving a good match between power consumption and weather-dependent power production.
Journal ArticleDOI

Lessons for Responsible Innovation in the Business Context: A Systematic Literature Review of Responsible, Social and Sustainable Innovation Practices

TL;DR: In this paper, a systematic literature review of 72 empirical scholarly articles was conducted to identify, analyse and synthesise empirical findings reported in studies on social, sustainable and responsible innovation practices in the business context.
Journal ArticleDOI

Comparing drivers, barriers, and opportunities of business models for renewable energies: A review

TL;DR: In this article, the authors systematically review the emerging field of research on business models for renewable energies, differentiating between developing and industrialized countries, and reveal implications for researchers and policy-makers.
Journal ArticleDOI

Value Creation and Value Capture Alignment in Business Model Innovation: A Process View on Outcome-based Business Models

TL;DR: In this paper, the authors describe the shift from selling products to selling outcome-based services, where the service provider (manufacturer) guarantees to deliver the perfor-for...
References
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Book

Case Study Research: Design and Methods

Robert K. Yin
TL;DR: In this article, buku ini mencakup lebih dari 50 studi kasus, memberikan perhatian untuk analisis kuantitatif, membahas lebah lengkap penggunaan desain metode campuran penelitian, and termasuk wawasan metodologi baru.
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Dynamic capabilities and strategic management

TL;DR: The dynamic capabilities framework as mentioned in this paper analyzes the sources and methods of wealth creation and capture by private enterprise firms operating in environments of rapid technological change, and suggests that private wealth creation in regimes of rapid technology change depends in large measure on honing intemal technological, organizational, and managerial processes inside the firm.
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Theory Building From Cases: Opportunities And Challenges

TL;DR: The research strategy of theory building from cases, particularly multiple cases, involves using one or more cases to create theoretical constructs, propositions, and/or midrange theory from case-based, empirical evidence.
Journal ArticleDOI

Dynamic capabilities, what are they?

TL;DR: Seeks to present a better understanding of dynamic capabilities and the resource-based view of the firm to help managers build using these dynamic capabilities.
Book

Doing Qualitative Research: A Practical Handbook

TL;DR: This step-by-step guide provides answers to all the questions students ask when beginning their first research project, and demonstrates how to learn the craft of qualitative research by applying knowledge about different methodologies to actual data.
Related Papers (5)
Frequently Asked Questions (12)
Q1. What are the contributions in this paper?

In this paper, the authors used the business model concept to investigate how German utilities position themselves to the challenges of the energy transition. 

However, the methodology allowed some valuable insights into the issue and provides suggestions how to address future challenges. During the course of research two issues appeared to be of special value for further research: First, the relationship between the business model concept and existing innovation literature should be explored further. Second, further research on business model innovation for customer-side renewable energy generation might add to the development of suitable value propositions and thus help to overcome the current obstacles. Given the dimensions of the energy transition there is a huge demand for further scientific analysis and advice on the questions addressed in this paper. 

Research on the failure of leading firms in other industries identifies two major obstacles for incumbent companies to develop adequate business models for disruptive technologies: cognitive barriers and lack of resources for innovation. 

While project development is seen as an attractive field by many regional utilities, operations and maintenance are seen as difficult. 

The lack of profitability is the main reason why this field is not seen as an attractive market by most interviewed utility managers. 

The theory of organizational ambidexterity suggests that organizations are successful in the long term, when they are able to exploit their existing capabilities while developing new competencies at the same time (Tushman and O'Reilly, 1996; Raish et al., 2009). 

Political goodwill is especially important for regional and local utilities as most of them have, at least partly, public shareholders. 

While solar proponents argue that production prices of electricity on the customer-side need to reach a level below the electricity wholesale price to make customer-side generation economically attractive, others argue this would neglect the true costs, which need to include costs for grids, storage, and taxes as well. 

In terms of infrastructure the utilities lack adequate organizational structures for business model innovation and are in early stages to increase know-how through external partnerships. 

This study found three main forms of external partnership which are currently important in the German market: cooperation with suppliers, cooperation with project developers, and cooperation with other utilities. 

Given the complex nature of the challenge to develop new value propositions and business models it can be concluded that the partnership activities are at a very early stage. 

Christensen and Bower (1996) conclude that the primary reason why incumbent firms fail to maintain their leading positions in radically changing environments is their inability to allocate sufficient resources to new technologies.