Full speed towards a sustainable future. The story of the electric car in Germany

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

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.