Adoption of smart grid technologies by electric utilities: factors influencing organizational innovation in a regulated environment

Incorporation of information and communications technologies has the potential to reduce the environmental impacts of electricity generation and distribution while improving the quality, reliability and efficiency of electricity supply. However, integrating smart grid technologies presents major organizational challenges to utilities, and adoption rates are still low. New knowledge is needed on organizational innovation in response to this potentially disruptive technology in the context of a regulated monopoly. This study examines factors influencing the adoption of smart grid technologies using data from 15 interviews with 12 U.S. utilities. The study provides useful insights and implications for utilities and regulators.