Developing Strategic Fit in Changing Business Dynamics

The rapid growth of the electric vehicle (EV) market has significantly increased the demand for a well-established and efficient charging infrastructure. Nevertheless, the recent developments in the transition to heavy traffic electrification pose new challenges and offer opportunities for infrastructure development companies. This phenomenon is changing business dynamics, which requires EV charging manufacturers to find a way to maintain their competitive advantage (exploitation) and continuously search for new ideas, technologies, business opportunities, and emerging innovations (exploration). Understanding how companies operating in such a dynamic business environment maintain their strategic fit (balance exploration and exploitation) is exciting. This research analyzes how EV charging manufacturers maintain a strategic fit in changing business dynamics. This study aims to analyze the strategic fit of an EV charging infrastructure by employing a single-case study approach. Data were collected through five in-depth and open-ended interviews with experts from a leading Finnish EV charging manufacturing firm. We found that EV charging manufacturers are faced with specific challenges due to changing business dynamics, and they utilize three strategies: developing collaborations, adopting an ambidextrous innovation approach, and strategic alignment to exploit their core technologies and innovations, and explore emerging opportunities, technologies, and business value.