Facilitating the Adoption of Disruptive Mobility Innovations: A Governance and Financial Perspective

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Abstract:

The global transportation sector is experiencing a paradigm shift driven by disruptive mobility innovations, such as light rail transit (LRT), Autonomous Shuttles, Mobility as a Service (MaaS), and Battery Electric Vehicles (BEVs). These technologies align with Christensen’s (1997) theory of disruptive innovation, fundamentally challenging incumbent transportation models by introducing novel value propositions. However, the rate at which these innovations are adopted varies markedly across nations, prompting a need for deeper examination of the governance and financial factors that facilitate or impede their deployment. This research investigates these discrepancies through the dual lens of corporate and public governance and financial structuring.

Applying Christensen’s disruptive innovation framework to mobility transitions, this study explores how institutional and market mechanisms influence technological diffusion. While some nations exhibit a proactive stance in integrating these innovations, others demonstrate institutional inertia shaped by entrenched regulatory frameworks, investment paradigms, and corporate decision-making structures. This study posits that variations in governance structures—both at the corporate and governmental levels—along with financial incentives and constraints are crucial determinants of adoption velocity.

The first dimension of the analysis centers on corporate governance, which informs strategic decision-making in legacy transportation and emergent mobility firms. Organizations with adaptive governance frameworks tend to leverage disruptive technologies as a competitive advantage, whereas inflexible structures often foster resistance to innovation. This section examines leadership dynamics, stakeholder engagement and corporate innovation strategies as key variables shaping industry-wide responses to disruptive mobility solutions.

The second pillar of inquiry is public governance. Government interventions—ranging from regulatory policies and legal frameworks to institutional support structures—play a pivotal role in either expediting or impeding the adoption of disruptive mobility technologies. This study explores the efficacy of regulatory sandboxes, public-private partnerships, and targeted subsidies in accelerating innovation. Comparative analysis reveals that nations with agile, investment-friendly policies experience higher adoption rates, whereas regulatory rigidity and bureaucratic inefficiencies serve as impediments to progress.

The third focal point is financial structuring, which critically determines the scalability and direction of mobility innovations. The availability and allocation of financial resources—through mechanisms such as internal reserves, venture capital, government grants, green bonds, and infrastructure investment—can either facilitate or hinder innovation. This study assesses how variations in financial instruments and investors’ risk appetite influence the trajectory of new mobility technologies.

Employing a comparative case study methodology, this research scrutinizes the introduction of Light Rail Transit (LRT) in Japan and France, alongside the adoption of Battery Electric Vehicles (BEVs) and their requisite infrastructure in diverse national contexts. These case studies illuminate how governance frameworks and financial mechanisms dictate mobility innovation pathways. By integrating qualitative and quantitative analyses, this study distills best practices and policy recommendations aimed at informing stakeholders across the government, industry, and finance sectors.

The findings of this research contribute to the scholarly discourse on sustainable mobility and technological diffusion by elucidating the governance and financial determinants of disruptive mobility adoption. By synthesizing insights on corporate governance adaptability, regulatory efficiency and financial support mechanisms, this study provides a comprehensive perspective on the systemic conditions that underpin the successful implementation of disruptive mobility innovations worldwide.