Creative destruction and the natural monopoly 'Death Spiral': can electricity distribution utilities survive the incumbent's curse?

Paul R. Newbury (2013). Creative destruction and the natural monopoly 'Death Spiral': can electricity distribution utilities survive the incumbent's curse?. In: EURAM13: 13th Annual Conference of the European Academy of Management 2013, Harbiye, Istanbul, Turkey, (). 26-29 June, 2013.

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Author Paul R. Newbury
Title of paper Creative destruction and the natural monopoly 'Death Spiral': can electricity distribution utilities survive the incumbent's curse?
Conference name EURAM13: 13th Annual Conference of the European Academy of Management 2013
Conference location Harbiye, Istanbul, Turkey
Conference dates 26-29 June, 2013
Place of Publication Ortaköy, Istanbul, Turkey
Publisher European Academy of Management (EURAM)
Publication Year 2013
Sub-type Published abstract
Open Access Status
Language eng
Formatted Abstract/Summary
The study examines how disruptive technological innovations are likely to impact electricity distribution network utilities and identifies several factors that threaten to inhibit incumbent efforts to adapt and survive. Unlike previous studies of incumbents in competitive markets, this qualitative multi-case study examines 18 electricity distribution network utilities who operate as regulated monopolies. Three important findings emerged from the study: firstly, that disruptive technologies in distributed electricity generation and storage are likely to trigger the ‘creative destruction’ of existing natural monopolies and render incumbent business models unsustainable. Secondly, the task of adapting to disruptive technologies is made more challenging by the additional requirement to simultaneously transition from a monopolistic to competitive marketplace. Thirdly, incumbents face the risk of inertia and paralysis due to a broad range of rigidities and inhibitors which threaten to undermine their efforts to adapt, survive and avoid succumbing to a ‘death spiral scenario’.
Keyword Creative destruction
Disruptive innovation
Monopoly
Rigidities
Q-Index Code EX
Q-Index Status Provisional Code
Institutional Status UQ

Document type: Conference Paper
Collection: UQ Business School Publications
 
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Created: Sun, 30 Mar 2014, 12:31:31 EST by Paul Newbury on behalf of UQ Business School