Multi-level neo-institutional analysis of pressures and tensions for adopting a digitally driven business model innovation: Responses from a French energy incumbent

Digitalization is disrupting the energy sector, requiring incumbents to reinvent their strategies by adopting digitally driven business model innovation (BMI). However, external pressures from value networks and institutional environments can constrain this adoption by creating or strengthening internal tensions. Because research on this issue has been limited, this study combines a multi-level approach to BMI with neo-institutional theory to clarify incumbents' strategic and organizational responses to pressures and tensions related to the adoption of digitally driven BMI. According to an in-depth case study of a large energy incumbent, a multi-level approach is key to understanding the interconnection between external pressures and internal tensions. The results show that though acquiescence is still a valid response to institutional demands, it can lead to a lack of consideration of internal tensions, as well as to organizational misfits that hamper BMI adoption. This article contributes to BMI and neo-institutional literature by offering new theoretical insights and makes managerial recommendations related to multi-level issues linked to the adoption of digitally driven BMI.