Incumbency and sustainability transitions: A systematic review and typology of strategies

Abstract

The role of incumbent firms in sustainability transitions is gaining more attention, with rapidly rising evidence of their proactive role in the change. Nevertheless, debates continue to focus on their defensive and resisting role. Studies that review the existing knowledge on incumbents' interaction with sustainability transitions are lacking. Therefore, this research applies a systematic literature review to introduce a synthesised approach to differentiate between incumbents' proactive and defensive strategies. Further, it examines these strategies more closely and proposes a level-based typology that includes organisational and management, technology development, industry and markets, and institutional. It argues that this classification has implications for scholarship, policymaking and management and highlights avoiding the sectoral bias in empirical evidence on proactive and defensive strategies and how addressing the four-level strategies by which incumbents interact with sustainability transitions contributes to creating policies and strategies that enforce an incumbent-led transition.