“I believe in horses, automobiles are a passing phenomenon”1
(Kaiser Wilhelm II, 1905)
More than 100 years ago when the first motorized vehicles appeared on the streets, Kaiser Wilhelm II was not able to see the potential of this invention and how it would change the world he lived in. Today we are facing the next revolution of transportation technology, elec-tric mobility (e-mobility). In consideration of continuous scarcity of fossil resources and pro-gressive environmental issues caused by increasing amounts of CO2 emissions in our atmos-phere, a rethinking of universally accepted habits is needed. Public and private transportation account for 19% of the overall CO2 emissions in Germany and is therefore one of the largest contributors to climate change and local air pollution (Umweltbundesamt, 2011). This circumstance also shows the great political relevance of this topic as well as the need to make the whole industry more sustainable. A sustainable innovation like the electric car can help to decrease the negative externalities of economic growth and reduce the ecological footprint of a modern-day life. Against this background, the German government proclaims that Germany should be the leading market for e-mobility; aiming to have a diffusion rate of one million electric cars until 2020 (Delhaes, 2008). In order to achieve this, they are dependent on the innovation activities of the German automotive industry. But consumers as well as car manu-factures seem to be skeptical about this novelty, which results in a comparable small diffusion rate of only 7114 electric cars in the end of 2012 (Kraftfahrt-Bundesamt, 2013). For instance, in Denmark the diffusion rate of new electronic cars is 30 times higher than in Germany and even The Netherlands have a rate that is 8 times higher (Masson, 2013). The mentioned diffu-sion rate shows the total number of newly registered electric cars in comparison to the total number of traditional fuel cars within a year. This is curious on a first view as Germany has the largest automotive industry in the world, consisting of firms like BMW, Daimler, Opel and Volkswagen. One would hence expect great interest and a proactive stance from both the firms as well as the government in supporting this innovation.
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Table of Content
1. Introduction
1.1. Research Objectives & Research Question
1.2. Research Contribution
1.3. Structure of the thesis
2. Theoretical Framework
2.1. Sustainable Innovation
2.2. Institutional Theory
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Table of Contents
1. Introduction
1.1. Research Objectives & Research Question
1.2. Research Contribution
1.3. Structure of the thesis
2. Theoretical Framework
2.1. Sustainable Innovation
2.2. Institutional Theory
2.2.1. Coercive Pressure
2.2.2. Mimetic Pressure
2.2.3. Normative Pressure
2.2.4. Institutional Change
2.3. Strategic Responses
3. Methodology
3.1. Sample - Introducing the electric car
3.2. Research Approach & Design
3.3. Data Collection: Sources & Search Terms
3.4. Setting the timeframe
3.5. Database composition
3.6. Analysis
4. Results
4.1. A Niche Market (Q1 2003 – Q3 2006)
4.2. The Beginning (Q4 2006 – Q1 2008)
4.3. First Hype (Q2 2008 – Q2 2009)
4.4. Rising Skepticism (Q3 2009 – Q3 2010)
4.5. Second Hype (Q4 2010 – Q4 2011)
4.6. Disenchantment (Q1 2012 – Q4 2012)
5. Conclusion
6. Discussion
6.1. Limitations of this study
6.2. Future Research
Research Objectives & Topics
This thesis investigates the development and diffusion of the electric car in Germany over a ten-year period (2003-2013) through the lens of institutional theory. It aims to explain why the diffusion of electric vehicles has remained remarkably low in a country with a dominant automotive industry, examining how institutional pressures and firm-level strategic responses interact to either facilitate or hinder technological change.
- Institutional theory as an explanatory framework for organizational stability and change.
- The dynamics between coercive, mimetic, and normative pressures in the German automotive sector.
- Strategic response options available to firms facing institutional constraints.
- The historical evolution of electric vehicle diffusion through six distinct phases of market development.
- The role of dominant industry actors in influencing governmental policy and shaping market outcomes.
Excerpt from the Book
4.1. A Niche Market (Q1 2003 – Q3 2006)
In 2003, the first relevant event is the announcement of Ford to stop the production of its electric car ‘e-think’, after GM and Honda already did the same [2]. This was the last sample originating from the electric car hype in the 1990s as described shortly in chapter 3.4. It can be interpreted as an anticipated response to the court decision in California in April 2003. After the automotive industry successfully sued the state of California for introducing new standards, which forced them to offer a certain amount of zero emission cars within their portfolio, a court skipped the mandate again [3]. This court proceeding received high interest from automotive industries worldwide, as the outcome would have a significant signal effect on global governmental initiatives. These two events are responsible for the negative institutional pressure at the beginning of this phase as shown in figure 9.
The court decision to skip the zero emission mandate gave a signal to the whole automotive industry and as a consequence the topic of electric mobility sank into insignificance for the moment as leasing contracts were not extended and the sales of new electric vehicles was stopped immediately [3]. As late as in the beginning of 2005 when the Kyoto was ratified in Germany and nations obliged themselves to reduce CO2 emissions between 2008 and 2012 by 50%, the topic found its way back into wider public interest [6]. Firms like Mitsubishi [7] and Volkswagen [10] as well as knowledge institutes like the national aeronautics and space research centre in Germany started to research again on electric as well as hybrid cars and even showed first concepts [8,9,11]. Alternatively, this can also be seen as response to the unexpected successful launch of Toyota’s ‘Prius II’ in Japan and the US in 2003 [2]. Solely in the United States, more than 150k units were sold between 2003 and 2005 ("Alternative Fuels Data," 2013).
Summary of Chapters
1. Introduction: This chapter introduces the research context, highlighting the low diffusion of electric cars in Germany, and establishes the main research question regarding institutional change.
2. Theoretical Framework: This section defines sustainable innovation and details institutional theory, specifically focusing on coercive, mimetic, and normative pressures and the strategic responses firms employ.
3. Methodology: This chapter outlines the longitudinal case study approach, utilizing archival data from German newspapers and reports to map events onto a coding scheme derived from institutional theory.
4. Results: This chapter presents the empirical findings categorized into six temporal phases, tracing the development of the electric car market from a niche status through various hype and skepticism cycles.
5. Conclusion: This chapter consolidates the research findings, affirming that institutional theory partially explains the slow diffusion but highlighting the significant role of dominant industry actors in maintaining the status quo.
6. Discussion: This section critically evaluates the limitations of the current strategic response framework when applied to an industry that acts as a proactive driver of institutional pressure rather than a passive respondent.
Keywords
Electric car, Germany, Institutional Theory, Sustainable Innovation, Coercive Pressure, Mimetic Pressure, Normative Pressure, Automotive Industry, Diffusion of Innovation, Strategic Responses, Institutional Change, Environmental Policy, Market Adaptation, R&D Subsidies, Corporate Sustainability.
Frequently Asked Questions
What is the core focus of this research?
The thesis explores why the diffusion of electric vehicles in Germany has been significantly lower than in other countries, despite the global automotive industry's focus on sustainable innovation.
What are the primary theoretical pillars used?
The study relies heavily on institutional theory, specifically the work of DiMaggio and Powell regarding organizational isomorphism, and Oliver's framework of strategic responses to institutional pressures.
What is the main research question?
The research asks if sustainable innovation can trigger institutional change and how this theoretical framework explains the relatively small market share of electric cars in Germany alongside a lack of aggressive firm-level innovation.
Which methodology does the author employ?
The author uses a qualitative, longitudinal case study approach, conducting process analysis on archival data from industry-relevant newspapers (e.g., Handelsblatt) to map and code institutional events over a ten-year period.
What does the main body of the work cover?
The main body systematically analyzes the evolution of the electric car market through six chronological phases, correlating industry events with institutional pressures and policy milestones.
Which concepts best characterize the study?
Key concepts include institutional entrepreneurship, de-institutionalization, mimetic isomorphism, coercive regulation, and the balancing of strategic business objectives with environmental sustainability goals.
How do German manufacturers differ from international competitors?
According to the study, German manufacturers have historically remained stuck in traditional fuel paradigms, often using lobbying to forestall strict regulations, whereas competitors in other markets have moved faster toward electric vehicle production.
What role does the government play in this institutional field?
The government acts as a source of coercive pressure, though the study finds that it often follows the lobbying lead of dominant industry actors, providing R&D subsidies rather than implementing market-forcing measures.
Why did the "First Hype" not lead to long-term success?
The hype was largely driven by industry-wide announcements, but the subsequent financial crisis and the lack of concrete, profitable product launches kept the actual diffusion rates minimal.
What is the author's final assessment of the German market?
The author concludes that the German automotive industry's reliance on existing institutional arrangements and its influence on national policy have effectively created high barriers to entry for disruptive electric technologies.
- Arbeit zitieren
- Fabian Guse (Autor:in), 2013, Full speed towards a sustainable future. The story of the electric car in Germany, München, GRIN Verlag, https://www.grin.com/document/281498
