Business model innovation and decision-making in the context of just energy transition

Abstract

This study examines how participative decision-making and business model innovation (BMI) may help achieve a Just Energy Transition (JET) in South Africa, where decarbonization targets run into complex social and economic issues, including inequality, unemployment, and dependence on coal. In contrast to the previous studies, which have focused on technical and economic solutions, this study focuses on the justice, equity, and stakeholders’ inclusivity issues that must necessarily be incorporated into business models if an effective energy transformation is to take place. A qualitative, phenomenological approach is adopted through sixteen semi-structured interviews with policymakers, industry leaders, regulators, financiers, and civil society to understand experience and interpretative knowledge and how stakeholder power, governance, and ethical dilemmas interact to shape BMI in a JET context. Thematic analysis shows the main obstacles that exist in the way, including fragmentation of governance, centralised decision-making, and policy misalignment, but also points out the participative mechanisms that are emerging, which allow for stakeholder forums and participative initiatives in communities that promote co-creation and legitimacy. The results show that the successful realignment of energy business models depends on participative, adaptive governance frameworks that strongly focus on procedural justice and multi-level inclusivity. The newly introduced Justice-oriented Innovation Framework strongly emphasizes agency and accountable leadership to overcome historical inequalities. The current study thus provides actionable insights and theoretical gaps for both theory and practice for South Africa and the world regarding the need for integrated frameworks that connect participative decision-making, justice-oriented governance, and business model innovation to achieve a fair and inclusive energy transition.