International diffusion of sustainable innovative automobile engine technologies: A manufacturers’ strategy

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Abstract

Concerns regarding the health of the planet and its economies have led to an increased focus on sustainable new technology (SNT). However, the diffusion of SNT-based products appears uneven globally. Research informs that diffusion can be influenced by multiple factors, including country policies and private sector initiatives (Albino et al., 2014). This study uses a top management team (TMT) perspective (Hambrick & Mason, 1984) to analyze auto manufacturers’ worldwide sales of electric vehicles (EVs) to understand and explain this uneven diffusion. The data indicate that individual sub-categories of EVs are developing at different rates and that significant differences exist among countries and manufacturers. These observations suggest that not all sub-categories of EVs are equal in the minds of consumers, manufacturers, and governments. Mandates from the European Union (EU) and other entities that no new internal combustion engine (ICE) vehicles can be sold after 2035 are forcing all parties in the automotive industry to work earnestly to develop EV-related technology. From a policy perspective, this research shows that government policy can work to both motivate consumers to purchase EVs and manufacturers to produce EVs. In addition, we identify avenues for future research.

Keywords: Sustainability, Diffusion, Innovation, Technology

Authors’ individual contribution: Conceptualization — L.J.Z. and M.J.; Methodology — L.J.Z.; Formal Analysis — L.J.Z. and M.A.T.; Data Curation — M.J.; Writing — L.J.Z. and M.A.T.; Visualization — M.A.T.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: L92, O31, O33

Received: 25.07.2024
Accepted: 20.01.2025
Published online: 24.01.2025

How to cite this paper: Zane, L. J., Jaiswal, M., & Tribbitt, M. A. (2024). International diffusion of sustainable innovative automobile engine technologies: A manufacturers’ strategy. Corporate Governance and Sustainability Review, 8(4), 44–58. https://doi.org/10.22495/cgsrv8i4p4