Abstract
Grid operators increasingly have to collaborate with other actors in order to realize smart grid innovations. For routine maintenance, grid operators typically acquire technologies in one-off transactions, but the innovative nature of smart grid projects may require more collaborate relationships. This paper studies how a transactional versus relational approach to governing smart grid innovation projects affects incentives for other actors to collaborate. We analyse 34 cases of smart grid innovation projects based on extensive archival data as well as interviews. We find that projects relying on relational governance are more likely to provide incentives for collaboration. Especially non-financial incentives such as reputational benefits and shared intellectual property rights are more likely to be found in projects relying on relational governance. Policy makers that wish to stimulate smart grid innovation projects should consider stimulating long-term relationships between grid operators and third parties, because such relationships are more likely to produce incentives for collaboration.
Highlights
This section provides a theoretical background on governance (Section 2.1) as well as collective action theory (Section 2.2)
We find that transactional governance is the prominent mechanism in 47% of the cases, while relational governance is present in 53% of the cases
This paper explored how smart grid projects are governed by grid operators, and how this affects collective action with other actors
Summary
We provide a theoretical background on governance (Section 2.1) as well as collective action theory (Section 2.2). In its traditional form, transaction costs theory distinguishes market and hierarchy governance (Williamson, 1979). For specifying our measurement instrument and interpreting the findings, we first explored the context in which Alliander engages in smart grid innovation. We conducted a follow-up interview with the managers of subcontracting and innovation departments in January 2016, allowing a more reflective perspective on the observed period These informal talks and follow-up interview served to sketch the context of the cases, and were not used for the actual data collection. Innovation is a nice-to-have and directly contributes to reaching efficiency gains in the long run Another reason to engage in smart grid innovation is from a responsibility and legitimacy perspective. A typical pattern is that grid operators try to sustain their legitimacy by engaging in innovation projects
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