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Predictions from transitions theories, dynamic capabilities and real options theory on the role of governments as agents of sustainability

In a bid to complement transition research, we brought views from Dynamic Capabilities and Real Options theory. We observed that both Dynamic Capabilities and Real Options theory provide important insights for governments in determining a suitable and successful policy (mix) for sustainability. We performed a qualitative literature analysis to answer our research question “what is the role of governments as agents of sustainability?”. Our findings suggest that these insights could help to fulfil the potential of governments acting as active agents of sustainability transitions. To build integration between these disciplines, we suggest further appreciation on integrating Transition literature with Dynamic Capabilities and Real Options theory.