Abstract:
The Multi-Level Perspective (MLP) has been applied as a conceptual framework to
describe the socio-technical transition in the energy sector in South Africa. The three
levels of the MLP being the socio-technical landscape, socio-technical regime and
niche provides an elegant framework for business to understand the energy
transition that is unfolding.
Within the regime, are multiple incumbent actors with business models that are
highly established and form an impenetrable barrier to a regime shift or infiltration of
niches. The current energy regime has been weakened due to corruption and
mismanagement thereby creating a window of opportunity for niche renewable
energy producers to enter the regime and move it forward.
Within the network of actors in the socio-technical regime resides a group of often
neglected Small and Medium Enterprises (SMEs) whose business models have
been designed to function solely within the fossil-fuel energy regime.
This research study sought to discover the perceived risk of the energy sector SMEs,
to understand their business models, and determine if they had enacted or intended
to enact any business model innovation in response to the socio-technical landscape
pressures exerted on them as incumbents of the existing energy regime.
Due to the porous literature on the confluence of business model innovation and
transition theory, a qualitative research study was undertaken. Data was collected
from a sample of SMEs within the existing regime and analysed to determine their
perceptions on the energy transition and its potential effect on the successful
continuation of their business models as they were currently devised.
The findings revealed that SMEs were highly aware of the environmental pressures
that were being exerted on them, however, they did not foresee the complete
abolishment of coal infrastructure. In addition, the sampled SMEs exhibited high
levels of organisational inertia, and favoured efficiency modifications in contrast to
business model innovation.
