Strategic Partnerships in an Infant Industry A Case Study on the European Battery Value Chain Through the Lens of Institutional Theory

Abstract

This study investigates how strategic partnerships are utilized across the value chain of infant industries, with the European battery value chain as a case study. The study addresses how these partnerships are utilized beyond firm-level benefits to drive value creation and critically shape emerging institutional structures. By viewing the findings with an institutional theory lens, particularly focusing on institutional work, the research explores how partnerships enable actors to navigate and co-construct the infant market’s rules, norms, and cognitive frameworks. The qualitative case study of the European battery industry, including semi-structured interviews with key stakeholders and a thorough document analysis, shows that partnerships are not solely strategic alternatives but are rather crucial for survival, knowledge acquisition, and capability development in this emerging sector. Key factors driving the industry are the urgent European need for scaling, technological advancements, and geopolitical and regulatory challenges. Various partnership models, such as supply agreements and joint ventures, even among competitors, are fundamental for establishing the industry. The research demonstrates that these partnerships are forms of institutional work, most actively shaping market norms, identities, and the overall institutional framework. This study highlights that partnerships are a determining means through which firms co-create markets in infant industries.