Sustainable development and incumbents' open innovation strategies for a greener competence‐destroying technology: The case of electric vehicles

Given that entire industries face sustainable development challenges, it is important to understand the dynamics that lead incumbents to develop competence‐destroying sustainable product innovations. This paper provides a longitudinal analysis of automobile incumbents' open innovation strategies during the era of shift from internal combustion engines to electric vehicles by describing the process through which they leverage open innovation for the provision and development of electric batteries, the most distinct component of electric vehicles. The paper analyses the strategies of 13 carmakers over a period of 26 years and identifies a path‐based open innovation framework for green technology characterised by an inverse U‐shaped breadth and depth of partnerships correlated to different levels of technological uncertainty until carmakers start moving from market to hierarchy by producing in‐house electric batteries.