‘Creative destruction’ v ‘Creative accumulation’: Organisational transformation challenges confronting electricity distribution monopolies

Abstract

The paper presents selected findings for research into sectoral impacts of disruptive technological innovation in the Australian electricity industry, with emphasis on monopoly electricity distribution utilities. A qualitative case study approach was applied with data collected via semi-structured interviews with management representatives of 13 Australian electricity distribution network service providers. Interview data reveals contrasting views between private and public utility managers in terms of the perceived significance of challenges facing their organisations and the cultural preparedness to respond. Whilst representatives of private utilities expressed confidence in the cultural readiness of their organisations to meet the challenges ahead, managers representing public utilities identified organisational cultural constraints as one of the most significant impediments to the transformation of their businesses. Key concerns related to organisational culture included: resistance to change; lack of an innovative culture; risk aversion; poor cross functional collaboration; and lack of commercial focus and performance driven culture.