The Co-evolution in the Norwegian EV Market

Abstract

Norway has a comprehensive EV incentive program that has shaped the growth in the Norwegian EV market. Co-evolutionary outcomes, such as aggregated volume, modern EV technology and innovation can bring great success, but can also lead to challenges. The incentives were always meant to be temporarily and will eventually be revised and adjusted to the market development by the Norwegian government. How will the interaction between regulatory change and technological change be? Co-evolutionary studies have recently begun to refer to the political processes that might be involved where co-evolution appears. Coevolutionary theory suggests that firms co-evolve with the environment. The researcher wants to look closer at the co-evolution of firms’ and institutions’ strategies and the potential outcomes that comes from this interaction consequentially by examining the co-evolution in the Norwegian EV market. The study is based on co-evolutionary theory where the interaction between car manufacturers and the Norwegian government in the Norwegian EV market are being carefully examined. The distinctive purpose of using a multiple case study approach is to provide better insight that can contribute to the theory building. The case is intended to show causes of rapid changes that can result in great uncertainty for the future EV market in Norway. There are few studies conducted on this topic, and most of the co-evolution studies that have been done have concentrated on emerging economies and not on a developed economy such as Norway. The findings of this qualitative paper contribute to the theory by illustrating how multinational enterprises (car manufacturers) relate to the uncertainty caused by a change in institutional regulations (Norwegian government regulations) and how these institutions can affect MNEs’ strategies and vice versa. The paper concludes with suggestions for further research and implications.