Learning Strategies in Smart Grid Adoption: An Explorative Study in the U.S. Electric Utility Industry

The U.S. electric utility industry is facing a number of challenges today. In response, utilities are investing in smart grid technologies to mitigate them. Yet, smart grid adoption presents significant knowledge barriers to utilities. This study aims to advance the understanding of IT knowledge challenges in smart grid adoption by focusing on three research questions: 1) what knowledge requirements are critical for smart grid adoption and what knowledge gaps are faced by utilities 2) are utilities responding to these knowledge gaps; and 3) What factors help explain differences in utilities’ responses. Due to the unique nature of the electric utility industry, we take a qualitative, exploratory approach to address these questions. Our analysis reveals five types of knowledge essential in smart grid adoption and uncovers utilities’ responses to these challenges based on an internal vs. external learning framework. Our study also suggests that utilities’ responses depend on a mix of knowledge and organizational factors.