Abstract
Energy Efficiency Services (EES) represent a promising solution to increase energy efficiency and contribute to reducing emissions. Unfortunately, they are still underdeveloped and companies delivering them are struggling to remain viable. In this chapter, we study EES through the lens of business models. We propose that business models of companies delivering EES can be analyzed along two conceptual dimensions: how user centered they are and what dynamic capabilities they require. We use this framework to analyze 46 cases in five European countries and South Korea. Four business model archetypes emerge, with varying degrees (low, medium, high) of user-centeredness and a focus on different dynamic capabilities. Based on the insights from our qualitative analysis, we discuss the opportunities and barriers for further market uptake of EES and possible policy interventions.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Aagaard, A., & Ritzén, S. (2020). The critical aspects of co-creating and co-capturing sustainable value in service business models. Creativity and Innovation Management, 29(2), 292–302.
Achtenhagen, L., Melin, L., & Naldi, L. (2013). Dynamics of business models – Strategizing, critical capabilities and activities for sustained value creation (2015). Long Range Planning, 46(6), 427–442.
Arevalo, J. A., Castelló, I., de Colle, S., Lenssen, G., Neumann, K., & Zollo, M. (2011). Introduction to the special issue: Integrating sustainability in business models. Journal of Management Development, 30, 941–954.
Bastida, L., Cohen, J. J., Kollmann, A., Moya, A., & Reichl, J. (2019). Exploring the role of ICT on household behavioural energy efficiency to mitigate global warming. Renewable and Sustainable Energy Reviews, 103, 455–462.
Bigliani, R., Eastman, R., Segalotto, J., Feblowitz, J., & Gallotti, G. (2015). Designing the new utility business models (White paper). Energy Insights IDC.
Bocken, N. M. P., Short, S. W., Rana, P., & Evans, S. (2014). A literature and practice review to develop sustainable business model archetypes. Journal of Cleaner Production, 65, 42–56.
Boons, F., & Lüdeke-Freund, F. (2013). Business models for sustainable innovation: State-of-the-art and steps towards a research agenda. Journal of Cleaner Production, 45, 9–19.
Borgeson, M., Zimring, M., & Goldman, C. (2012). The limits of financing for energy efficiency. Lawrence Berkeley National Laboratory. https://escholarship.org/uc/item/10b8d9zs
Calabrese, A., Castaldi, C., Forte, G., & Levialdi, N. G. (2018). Sustainability-oriented service innovation: An emerging research field. Journal of Cleaner Production, 193, 533–548.
Calabrese, A., Forte, G., & Levialdi, N. G. (2018). Fostering sustainability-oriented service innovation (SOSI) through business model renewal: The SOSI tool. Journal of Cleaner Production, 201, 783–791.
Casadesus-Masanell, R., & Ricard, J. E. (2010). From strategy to business models and onto tactics. Long Range Planning, 43, 195–215.
Chesbrough, H. (2010). Business model innovation: Opportunities and barriers. Long Range Planning, 43(2–3), 354–363.
Chowdhury, J. I., Hu, Y., Haltas, I, Balta-Ozkan, N., & Liz Varga, G. Jr. M. (2018). Reducing industrial energy demand in the UK: A review of energy efficiency technologies and energy saving potential in selected sectors. Renewable and Sustainable Energy Reviews, 94, 1153–1178.
Corbin, J. M., & Strauss, A. (1990). Grounded theory research: Procedures, canons, and evaluative criteria. Qualitative Sociology, 13(1), 3–21.
Den Hertog, P., Van der Aa, W., & De Jong, M. W. (2010). Capabilities for managing service innovation: Towards a conceptual framework. Journal of Service Management, 21(4), 490–514.
Eurostat. (2020). Energy consumption in 2018: Primary and final energy consumption still 5% and 3% away from 2020 targets. Newsrelease. Retrieved September 11, 2020, from https://ec.europa.eu/eurostat/documents/2995521/10341545/8-04022020-BP-EN.pdf/39dcc365-bdaa-e6f6-046d-1b4d241392ad
Foss, N. J., & Saebi, T. (2017). Fifteen years of research on business model innovation: How far have we come, and where should we go? Journal of Management, 43(1), 200–227.
Gentile, C., Spiller, N., & Noci, G. (2007). How to sustain the user experience: An overview of experience components that co-create value with the user. European Management Journal, 25, 395–410.
Hienerth, C., Keinz, P., & Lettl, C. (2011). Exploring the nature and implementation of user-centred business models. Long Range Planning, 44, 344–374.
Huijben, J. C. C. M., & Verbong, G. P. J. (2013). Breakthrough without subsidies? PV business model experiments in the Netherlands. Energy Policy, 56, 362–370.
International Energy Agency (IEA). (2014). Capturing the multiple benefits of energy efficiency: Executive summary. International Energy Agency. Retrieved September 11, 2020, from https://webstore.iea.org/download/direct/375?fileName=Multiple_Benefits_of_Energy_Efficiency.pdf
Janssen, M. J., & Castaldi, C. (2018). Services, innovation, capabilities, and policy: Toward a synthesis and beyond. Science and Public Policy, 45(6), 863–874.
Janssen, M. J., Castaldi, C., & Alexiev, A. (2016). Dynamic capabilities for service innovation: Conceptualization and measurement. R&D Management, 46(4), 797–811.
Janssen, M. J., Castaldi, C., & Alexiev, A. S. (2018). In the vanguard of openness: Which dynamic capabilities are essential for innovative KIBS firms to develop? Industry and Innovation, 25(4), 432–457.
Janssen, M. J., & den Hertog, P. (2016). Developing service-based business models: Which innovation capability for which innovation dimension? In Service innovation (pp. 97–128). Springer Japan.
Kemp, R., Schot, J., & Hoogma, R. (1998). Regime shifts to sustainability through processes of niche formation: The approach of strategic niche management. Technology Analysis & Strategic Management, 10(2), 175–198.
Kindström, D., Ottosson, M., & Thollander, P. (2017). Driving forces for and barriers to providing energy services. A study of local and regional energy companies in Sweden. Energy Efficiency, 10, 21–39.
Maltz, E., Bi, H. H., & Bateman, M. (2018). Benchmarking sustainability performance: The next step in building sustainable business models. Journal of Public Affairs, 18(3), e1606.
McGrath, R. G. (2010). Business models: A discovery driven approach. Long Range Planning, 43(2–3), 247–261.
Metcalfe, J. S. (1995). Technology systems and technology policy in an evolutionary framework. Cambridge Journal Economics, 19(1), 25–46.
Miozzo, M., & Soete, L. (2001). Internationalization of services: A technological perspective. Technological Forecasting and Social Change, 67(2–3), 159–185.
Mont, O., & Lindhqvist, T. (2003). The role of public policy in advancement of product service systems. Journal of Cleaner Production, 11(8), 905–914.
Osterwalder, A., & Pigneur, Y. (2010). Business model generation: A handbook for visionaries, game changers, and challengers. Wiley.
Rai, V., & Sigrin, B. (2013). Diffusion of environmentally-friendly energy technologies: Buy versus lease differences in residential PV markets. Environmental Research Letters, 8(1), 1–8.
Richter, M. (2013). German utilities and distributed PV: How to overcome barriers to business model innovation. Renewable Energy, 55, 456–466.
Rubalcaba, L., Gallego, J., & Den Hertog, P. (2010). The case of market and system failures in services innovation. Service Industries Journal, 30(4), 549–566.
Sarasini, S., & Linder, M. (2018). Integrating a business model perspective into transition theory: The example of new mobility services. Environmental Innovation and Societal Transitions, 27, 16–31.
Schot, J., & Geels, F. W. (2008). Strategic niche management and sustainable innovation journeys: Theory, findings, research agenda, and policy. Technology Analysis & Strategic Management, 20(5), 537–554.
Seawright, J., & Gerring, J. (2008). Case selection techniques in case study research: A menu of qualitative and quantitative options. Political Research Quarterly, 61(2), 294–308.
Smith, A., & Raven, R. (2012). What is protective space? Reconsidering niches in transitions to sustainability. Research Policy, 41(6), 1025–1036.
Steg, L., Perlaviciute, G., & van der Werff, E. (2015). Understanding the human dimensions of a sustainable energy transition. Frontiers in Psychology, 6, 805.
Technopedia. (2020). Smart device. Retrieved July 27, 2020, from https://www.techopedia.com/definition/31463/smart-device
Teece, D. J. (2007). Explicating dynamic capabilities: The nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28, 1319–1350.
Teece, D. J. (2010). Business models, business strategy and innovation. Long Range Planning, 43, 172–194.
Teece, D. J. (2018). Business models and dynamic capabilities. Long Range Planning, 51(1), 40–49.
Tolkamp, J., Huijben, J. C. C. M., Mourik, R. M., Verbong, G. P. J., & Bouwknegt, R. (2018). User-centred sustainable business model design: The case of energy efficiency services in the Netherlands. Journal of Cleaner Production, 182, 755–764.
Tukker, A., & Tischner, U. (Eds.). (2006). New business for old Europe. Product services, sustainability and competitiveness. Greenleaf Publishing Ltd.
Vahidi, A., & Sciarretta, A. (2018). Energy saving potentials of connected and automated vehicles. Transportation Research Part C: Emerging Technologies, 95, 822–843.
Vandermerwe, S., & Rada, J. (1988). Servitization of business: Adding value by adding services. European Management Journal, 6(4), 314–324.
Vargo, S. L., & Lusch, R. F. (2008). Service-dominant logic: Continuing the evolution. Journal of the Acad. Marketing Science, 36, 1–10.
Yin, R. K. (2003). Case study research: Design and methods. Sage Publications.
Zollo, M., & Winter, S. G. (2002). Deliberate learning and the evolution of dynamic capabilities. Organization Science, 13(3), 339–351.
Zott, C., Amit, R., & Massa, L. (2011). The business model: Recent developments and future research. Journal of Management, 37(4), 1019–1042.
Acknowledgments
This work was supported by the Technology Collaboration Programme User-Centred Energy Systems by the International Energy Agency. We thank the national experts involved in the project for their support in the analysis and data gathering. We are also grateful to the editors of this book, in particular Peter Wells, for their suggestions.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Appendix
Appendix
Rights and permissions
Copyright information
© 2021 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this chapter
Cite this chapter
Mourik, R., Castaldi, C., Huijben, B. (2021). Business Models for Energy Efficiency Services: Four Archetypes Based on User-Centeredness and Dynamic Capabilities. In: Aagaard, A., Lüdeke-Freund, F., Wells, P. (eds) Business Models for Sustainability Transitions. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-77580-3_11
Download citation
DOI: https://doi.org/10.1007/978-3-030-77580-3_11
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-030-77579-7
Online ISBN: 978-3-030-77580-3
eBook Packages: Business and ManagementBusiness and Management (R0)