Innovation and institutional change: the transition to a sustainable ...

Innovation and institutional change: the transition to a sustainable ... Innovation and institutional change: the transition to a sustainable ...

doc.utwente.nl
from doc.utwente.nl More from this publisher
31.07.2013 Views

Theoretical perspectives 51 In the next sections we will focus on theories that can provide complementary insights on the role of core elements in systems change: actors, networks and institutions. 2.4.3 Theorising about the role of actors in systems change The role of beliefs, expectations and vision Beliefs can be seen as culminations of knowledge, competencies and routines of actors embedded in specific ways of thinking. They are important because they tend to be intuitive, are often difficult to change, but can play a central role in decision making on innovations. It is essential to bring to the fore beliefs of actors, and to break them down in terms of the assumptions that underlie them. In the electricity system, for example, dominant actors (firms, experts) long believed that: 1) central and large-scale generation of electricity was technically superior, more efficient and more reliable, than small-scale decentral generation; and 2) the nature of renewable technologies made them unfit for this system because due to their discontinuous character it was impossible to integrate them within the system. While these beliefs to some extent are still persistent they have become less dominant because it became clear, through research, experiments and actual practice, that most experts just don’t know which amount of renewable types can be integrated into the system, and through a process of trial (and actually not that much error) the percentage has now grown to several percentage points in the Netherlands. With regard to the superiority of the central, large-scale model, this is something what is often assumed as it has been the main mode of thinking in the three, four decades after the Second World War, and is entrenched in the set-up of technical education and engineering institutes (Hofman and Marquart, 2001). The advent of combined heat and power production has made a major impact to corroding this belief, although the bias of engineers still tends to be that big is beautiful. As the advantages of a new technology are often not clear, expectations play a crucial role in the support for their development. Actors involved in innovations often try to build up positive expectations in order to gain support from a variety of actors (government, financial institutions, etc.). The role of expectations in the development of the technology depends on several characteristics (Elzen et al., 1998): - robustness: an expectation becomes more robust as it is increasingly shared by relevant actors; - quality: an expectation gains quality as it becomes increasingly supported by ongoing developments (proven technological innovations, collaboration between important actors);

52 Chapter 2 - specificity: as an expectation becomes more specific it will become more easy to realise them because it becomes more clear what has to be done to realise the expectation (e.g. fuel cells can deliver super reliable power versus fuel cells are the power plants of the future); - association: expectations become more powerful as they become associated with solving certain societal problems of which it is expected that the current technologies can not deal with them. Vision building is considered another important element in a process of system change and for the renewal of organisations. As more actors develop visions regarding the way society should develop, or for a specific subsystem such as energy, understanding grows regarding the kind of (fundamental) changes that may be necessary. Vision building can be useful when there is some sort of consensus between actors that a transition is required but there is dissent on what kind of transition or on how the transition may be achieved. The role of firms In his dissertation Dieleman (1999) uses theoretical perspectives from technology studies and institutional economics which view innovation as a process of searching, learning and adapting to understand why it is so difficult for firms to change their routines, such as to integrate the approach of cleaner production in their organisation. The limited success of cleaner production is explained by the fact that the participation of firms in cleaner production projects does not necessarily lead to changing routines, whereas, according to Dieleman, a change in the routines of firms is central to the whole concept of cleaner production. Dieleman’s focus is then on how these routines are anchored in the company and embedded in a company’s context. Change processes necessary for more radical environmental innovations then need to occur both at the level of firms and their routines, and in the institutions that reinforce the way companies behave. His main conclusion is that cleaner production projects have mainly generated what he terms singleloop learning. This type of learning leads to improvements in production processes and management but does not fundamentally alter the way the company functions, or the way it manages its production process. Values, ways of thinking (beliefs) and routines are thus unchanged, and the ‘art of pollution prevention’ does not become integrated within the company. In order to acquire the concept of pollution prevention double loop learning is required, where underlying values and beliefs are addressed and the current way of doing things is questioned. Companies need to break through the established routines, conventions, and standards solutions and ‘defreeze’ established images (Dieleman, 1999: 225). Companies need to be confronted with the fact that they overlook the potential for prevention and have

52 Chapter 2<br />

- specificity: as an expectation becomes more specific it will become more<br />

easy <strong>to</strong> realise <strong>the</strong>m because it becomes more clear what has <strong>to</strong> be done<br />

<strong>to</strong> realise <strong>the</strong> expectation (e.g. fuel cells can deliver super reliable power<br />

versus fuel cells are <strong>the</strong> power plants of <strong>the</strong> future);<br />

- association: expectations become more powerful as <strong>the</strong>y become<br />

associated with solving certain societal problems of which it is expected<br />

that <strong>the</strong> current technologies can not deal with <strong>the</strong>m.<br />

Vision building is considered ano<strong>the</strong>r important element in a process of<br />

system <strong>change</strong> <strong>and</strong> for <strong>the</strong> renewal of organisations. As more ac<strong>to</strong>rs develop<br />

visions regarding <strong>the</strong> way society should develop, or for a specific subsystem<br />

such as energy, underst<strong>and</strong>ing grows regarding <strong>the</strong> kind of<br />

(fundamental) <strong>change</strong>s that may be necessary. Vision building can be useful<br />

when <strong>the</strong>re is some sort of consensus between ac<strong>to</strong>rs that a <strong>transition</strong> is<br />

required but <strong>the</strong>re is dissent on what kind of <strong>transition</strong> or on how <strong>the</strong><br />

<strong>transition</strong> may be achieved.<br />

The role of firms<br />

In his dissertation Dieleman (1999) uses <strong>the</strong>oretical perspectives from<br />

technology studies <strong>and</strong> <strong>institutional</strong> economics which view innovation as a<br />

process of searching, learning <strong>and</strong> adapting <strong>to</strong> underst<strong>and</strong> why it is so<br />

difficult for firms <strong>to</strong> <strong>change</strong> <strong>the</strong>ir routines, such as <strong>to</strong> integrate <strong>the</strong> approach<br />

of cleaner production in <strong>the</strong>ir organisation. The limited success of cleaner<br />

production is explained by <strong>the</strong> fact that <strong>the</strong> participation of firms in cleaner<br />

production projects does not necessarily lead <strong>to</strong> changing routines, whereas,<br />

according <strong>to</strong> Dieleman, a <strong>change</strong> in <strong>the</strong> routines of firms is central <strong>to</strong> <strong>the</strong><br />

whole concept of cleaner production. Dieleman’s focus is <strong>the</strong>n on how <strong>the</strong>se<br />

routines are anchored in <strong>the</strong> company <strong>and</strong> embedded in a company’s context.<br />

Change processes necessary for more radical environmental innovations <strong>the</strong>n<br />

need <strong>to</strong> occur both at <strong>the</strong> level of firms <strong>and</strong> <strong>the</strong>ir routines, <strong>and</strong> in <strong>the</strong><br />

institutions that reinforce <strong>the</strong> way companies behave. His main conclusion is<br />

that cleaner production projects have mainly generated what he terms singleloop<br />

learning. This type of learning leads <strong>to</strong> improvements in production<br />

processes <strong>and</strong> management but does not fundamentally alter <strong>the</strong> way <strong>the</strong><br />

company functions, or <strong>the</strong> way it manages its production process. Values,<br />

ways of thinking (beliefs) <strong>and</strong> routines are thus un<strong>change</strong>d, <strong>and</strong> <strong>the</strong> ‘art of<br />

pollution prevention’ does not become integrated within <strong>the</strong> company. In<br />

order <strong>to</strong> acquire <strong>the</strong> concept of pollution prevention double loop learning is<br />

required, where underlying values <strong>and</strong> beliefs are addressed <strong>and</strong> <strong>the</strong> current<br />

way of doing things is questioned. Companies need <strong>to</strong> break through <strong>the</strong><br />

established routines, conventions, <strong>and</strong> st<strong>and</strong>ards solutions <strong>and</strong> ‘defreeze’<br />

established images (Dieleman, 1999: 225). Companies need <strong>to</strong> be confronted<br />

with <strong>the</strong> fact that <strong>the</strong>y overlook <strong>the</strong> potential for prevention <strong>and</strong> have

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!