Innovation and Knowledge Management in the Energy Sector

Abstract

We experience significant changes in the energy sector globally. The main trends are related to the sustainability, the growing share of renewables, the demand for decentralized solutions, the use of smart devices and the importance of energy efficiency and energy security. Because of the changing market environment, large energy companies need new organizational solutions and business activities, which can be achieved through innovation according to market trends. However, the rigorous regulation and the rigid institutional context limit opportunities, moreover, the large size of the energy companies, the highly concentrated markets and the dominance of traditional technologies result organizational inertia and path dependency suppressing innovation and organizational change. Our article analyzes the external factors forcing changes, external and internal factors suppressing changes, and finally identifies those management tools that can facilitate the innovation processes and organizational changes.