Decisions on organizational boundaries are critical aspects of manufacturing firms’ business strategies. This article brings together concepts and findings from industrial ecology and business strategy in order to understand how manufacturing firms engage in initiatives to facilitate recycling of process wastes. Based on a distinction between waste recovery and use of the recovered resources, the article introduces a typology of four different strategies: Closed, Outsourcing, Diversification, and Open. Each strategy has a unique set of organizational boundaries and is associated with different motives and benefits for the manufacturing firm. The typology of strategies provides a conceptual contribution to assist industrial managers in strategic decision-making, and to support further studies on organizational boundaries in industrial ecology research.

Background and research question

Presenting possible solutions to environmental problems such as air quality, greenhouse gases, nutrient recirculation, organic waste and wastewater management, biogas is highly relevant for sustainability transitions. Besides biogas producers, the production and use of biogas engages actors from several sectors, including energy and gas distribution, waste management and wastewater treatment, agriculture, vehicles and transport.

The formation of markets for biogas depends on policy interventions at different levels, from the local municipality via the national government to the EU commission. By contrast to other European countries, which tend to subsidize biogas production, the Swedish government has the intention to stimulate demand and to favor the use of purified biogas (biomethane) as a vehicle fuel. While biomethane currently has a strong position as an alternative to fossil fuels in certain niches (notably public transport buses), the Swedish biogas sector faces challenges to reach beyond these narrow market segments.

Adopting a market constructivist perspective, this paper will analyze the formation of markets for biogas in Sweden. The following research question will guide the analysis: What characterizes market formation in this case and based on that, what is possible to learn about market formation in relation to sustainability transitions? 

Theory

Marketing scholars increasingly consider market formation as on-going processes, which a multitude of actors influence through their strategies, activities and capabilities. To understand market formation it is therefore necessary to analyze activities among a wider array of actors than merely producers and their (potential) customers.

Following a constructivist perspective, the offer is a core element in market formation. The offer describes the meanings and qualifications that actors impose on the object that is for sale. These meanings and qualifications constitute boundaries between actors and goods. Different actors engage to define the object, as well as its meanings, qualifications and potential value. Without a clear view of what is being exchanged, market formation will be difficult. Market formation also includes institutions that set boundaries and rules for the market. These are neither static, nor pre-conceived; instead, they are shaped and acted upon. Actors influence institutions through dynamic and interactive processes. 

Method

The paper combines quantitative and qualitative sources of data to study the Swedish biogas sector. The paper presents detailed data on production and use of biogas in Sweden 2010-2017. This quantitative data is complemented by qualitative data from interviews with representatives from key actors as well as secondary data from industry reports and other written sources. 

Findings

The multitude of actors involved complicates market formation for biogas. Different meanings and qualifications are attributed to the offer. Whereas it is possible to perceive biogas as a relatively simple product – a fuel – it is also possible to perceive it as a complex system that may help solving various societal and environmental problems. Different perceptions of the offer have different implications for market formation. Depicting biogas as a complex system implies that the offer will comprise a number of different qualifications. The realization of such a complex system depends on the bonding of various actors. Once established, the bonds will protect biogas from competition. By contrast, depicting biogas as a fuel means that the value of biogas will be assessed in relation to fuel prices. Qualification will thus depend on cost competitiveness vis-a-vis other fuels.

Our analysis suggests that although the contrasting perceptions of biogas cause tensions between the actors involved, the different qualifications complement each other in the market formation process. Various environmental and societal benefits makes it possible for actors argue for institutional reforms to help biogas become cost competitive, and increased competitiveness makes it attractive to establish new biogas systems.

This paper seeks to answer the question of how learning processes support niche aggregation. It brings together literature on strategic niche management and theoretical concepts derived from literature on project management and learning in project-based firms to analyze the ongoing standardization efforts for fast-charged electric bus systems in Europe. The analysis suggests that niche aggregation is a cyclical process that depends on two learning processes: knowledge sharing and knowledge accumulation. Whereas knowledge sharing is an interactive process that involves several organizations, knowledge accumulation is an internal organizational learning process that enables firms to move beyond local niche projects and engage in external networks. These learning processes are mutually reinforcing and jointly support niche aggregation.

Should product architectures be considered inputs to – or outputs from – new product development (NPD)? Whereas the mirroring hypothesis suggests the former, NPD stage-models suggests the latter. Elaborating on these conflicting propositions, this paper analyses the relationships between product architectures and development processes in NPD projects. The analysis demonstrates how project managers use product architectures to interpret their tasks and devise appropriate responses to perceived challenges. Thus, architectures provide useful linkages between knowledge development and organizational change in R&D organizations.

Emission standard requirements for toxic air pollution (NOx/PMs) from heavy duty vehicles (HDVs) have been sharply reduced over the past few decades. This paper seeks to explain how such significant reduction has taken place in the European HDV sector. Based on the sectoral systems of innovation framework, this paper sheds light on the commercial vehicles sector, one that is often overlooked in existing literature. The analysis suggests that extensive periods of network formation, coordination and negotiation in the early stages of regulatory process enabled consensus, which in turn made it possible to obtain acceptance for technology-forcing requirements at the industry level. This facilitated enactment and implementation of further stringent emissions standards in later phases. It also explains why OEMs did not resist stringent environmental measures in this sector.

Less than 10 years ago, Volvo Cars was known for spacious family cars with high levels of safety but fuel consumption well above the EU average. When in 2007, customers started to demand more efficient cars, the company had little to offer and few projects in the pipeline, whereas competitors rapidly launched less-emitting models. Without waiting for formal executive decisions, a team of experienced engineers took the initiative and organized a broad reengineering campaign labeled “DRIVe” (“Drive towards zero”). The basic idea was to build on existing models and platforms and in a very focused process introduce modifications and fuel-saving modules and so launch a low emitting model within less than 12 months. Incentives on various national markets, for example Belgium or the Netherlands were important factors to convince the market organization and get internal acceptance. In 2008, production started of the first DRIVe versions of Volvo’s compact cars with emissions at 119 gram CO2/km, a reduction by 10+ grams. Six months later more advanced versions with start/stop functionality reduced emissions to 104 g/km. DRIVe versions of the larger models followed, and in 2010, production started of a new version of the large V70 DRIVe with fuel consumption reduced to 0.45 l/100 km and emissions to 119 g CO2/km, a 25% improvement. Later in 2010, improved versions S40 and V50 reported emissions at 99 g/km. The flow of rapid reengineering projects continued and in 2014, the team could present the compact V40 model with a new powerful engine, boasting emissions as low as 85gra/km – without the help of any hybrid systems. An important driver of this flow constantly improved models has been the purchasing incentives in the Netherlands which are tightened annually, 88 gram/km in 2013, 85gram/km in 2014, 82gram/km in 2015, etc. Compliance with these levels is critical for success in the Dutch company car segment and has been very effective in setting a target for the DRIVe projects in recent years, and has contributed to Volvo Cars repositioning from fuel consumption well above the EU average to the lowest fuel consumer within its segment. In total, the DRIVe program has delivered 25 improved models from 2008 to 2014. In this paper we analyze its success factors, management particularities and lessons and limitations for other development projects.

Elektromobilitet är ett vittfamnande begrepp. Det kan täcka in ett stort antal fordonstyper och tillverkare, en diversifierad tjänstesektor, liksom nya principer för stads- och trafikplanering. Denna rapport är avgränsad till elektrifiering av tunga fordon: bussar och lastbilar. Den inkluderar därmed inte elektrifiering av personbilar (eller elcyklar/elskotrar). Elektrifierade personbilar betra ktas istället som ett angränsande och ibland delvis överlappande system, som framför allt kan användas för jämförelser. Elbilar är förvisso ett dynamiskt område men drivs nästan helt av ett antal stora batteri- och biltillverkare utanför Sverige: både nyaföretag som Tesla Motors och  volymtillverkare som GM, Nissan-Renault och BMW. Svenskbaserade biltillverkare deltar med viss framgång – försäljningen av Volvo Cars laddbara premiumhybrid som utvecklades tillsammans med Vattenfallhar överträffat förväntningarna – men svenska företag har små möjligheter att påverka den övergripande teknik- och marknadsutvecklingen. Genom den internationella teknikutvecklingen har kostnaderna för elektrifierade personbilar kraftigt sänkts under senare år, och det finns nu ett stort antal serietillverkade modeller på marknaden. Räckvidd och laddtider är nackdelar för de flesta elbilar, men förbättras kontinuerligt. Standarder har etablerats för  infrastruktur, t.ex. snabbladdare, och även här sänks kostnaden fortlöpande.

This paper provides a coevolutionary account on the development of Euro emissions standards and enhanced environmental innovation in the European heavy-duty vehicles sector. The aim is to understand the complexities and challenges of environmental regulation and the dynamics of environmental innovation at the European level, and draw lessons for policy makers. The analysis points at the need for reciprocal interactions to build consensus, consistency and continuity in regulatory frameworks, and a widening in the scope of knowledge and technologies to meet increasingly stringent requirements. Contributions are three folded: 1) providing a systemic perspective based on sectoral systems of innovation framework 2) shedding light on the commercial vehicles sector that is often overlooked in the management and innovation literature 3) elaborating on the European institutional context and its unique features of environmental regulation.

The multi-level perspective on sustainability transitions positions established firms (incumbents) as defenders of existing technologies at the "regime level." By contrast, it positions new entrants at the niche level, as promoters of new technologies. This paper challenges the positioning of firms as actors on either regime or niche levels. Based on a comparative analysis of technology strategies in the heavy vehicle industry, the paper shows that established firms are active at both levels, developing several technology alternatives simultaneously. This means that incumbents technology strategies determine important parts of the required niche regime interactions. The paper also shows how incumbents may pursue contrasting technology strategies. While some adopt a dualistic approach, keeping regime and niche level activities technologically and commercially separate, others develop integrated strategies where niche activities are leveraged to impact upon the regime level. The cases studied illustrate how the success of such integrated strategies depends on the emergence of bridging policies. Bridging policies are relevant both for linking early niche markets to broader regime-level markets, and for supporting further technological advancements of niche markets. (C) 2014 Elsevier B.V. All rights reserved.