Divergent technological strategies among leading electric vehicle firms in China: Multiplicity of institutional logics and responses of firms

Abstract

This paper aims to explain the divergence in technological strategies among leading electric vehicle (EV) firms in China. EVs, with their prospect of energy efficiency and emission reduction, have attracted widespread attention in recent years. However, EV development still faces technological challenges. While these challenges are similar for all firms, their coping strategies are highly divergent. One of the main reasons is that the policy environment for Chinese EV developers is shaped by a multiplicity of institutional logics which are sometimes incoherent. This allows firms to selectively build on those institutional logics that meet their needs and priorities. This strategic behavior results in divergent technological paths.