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al. argued that utility professionals having gained expertise Markard (2013) use the characteristics of infrastructure
and competitive advantage in mature technologies are sectors to illustrate the difficulty leaders in this sector
usually resistant to adopting other technologies. Fossil fuel experience in diversifying their business outside of core
technologies are mature technologies to utility industries. activities. According to Worch et al.(2013), these sectors
The complexity due to the lack of knowledge in operating have capital-intensive assets with long payback periods,
renewable energy technologies can act as a barrier to and the assets are so specific that there are unusable for
adopting and therefore implementing these technologies. other purposes. Additionally, these sectors provide basic
To overcome this barrier, leaders of electric utilities can services, which cannot be easily withdrawn, and usually
employ the suggested strategy by Richter (2013) and have to meet political and regulatory objectives. Worch
Shah et al. (2013) and form partnerships with other entities et al. concluded that because of these characteristics
that have expertise in renewable energy technologies. If capability gaps would emerge due to changes in policies,
electric utility leaders are able to form these partnerships, introduction of new technologies, or shifts in regulations.
this will provide leaders with a strategy to ensure that Wustenhagen and Manichetti (2012) suggested that
utility personnel gain knowledge and build expertise in cognitive factors such as path dependence could
renewable energy technologies. influence decision-making. Therefore, some leaders of
electric utility companies accustomed to investing in fossil
CompAtIbILIty fuel generation may find it challenging to switch towards
The value system and past experiences of leaders investing in renewable energy technologies. For example,
of electric utility companies influence their behavior customer-side renewable energy investments required
towards investments in renewable energy technologies. a significant change in business logic and thinking by
Researchers have shown that the innovativeness of leaders of electric utility companies in Germany (Richter,
decision makers and their mindset toward radical 2013). Koen, Bertels, and Elsum (2011) found that why
innovations, such as renewable energy technologies, established firms, which dominate a market, allow other
and the business sector in which the organization companies with business model innovations to acquire
operates can retard the rate of decision-making (D’Este market share or limit their growth. Koen et al. (2011)
et al., 2012; Ganter & Hecker, 2013; Laforet, 2013). The found that business model innovation requires a new
characteristics of the electricity sector could be a potential value network. The perceived degree in which investing
change barrier, Worch, Truffer, Kabinga, Eberhard, and in renewable energy technologies aligns with the past

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