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Regulating “Who We Are”: how EU Sustainability Regulation triggers identity change and shapes (or stalls) strategic transformation in automotive firms
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This thesis uses the European automotive sector as an illustrative case to examine how firms
respond to EU sustainability regulations through the lens of organizational identity. While such
regulations aim to drive transformative change, responses often remain compliance-driven and
symbolic. Drawing on interviews with OEMs and a sustainability expert, the study finds that
identity dynamics shape whether regulation prompts deep, coherent change. It introduces the
Strategic Identity Alignment Framework (SIAF), which links regulatory disruption to identity and
strategy alignment. The findings offer insights for scholars of sustainability transitions and top
managers in legacy industries navigating identity-rooted tensions in strategic transformations.
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Organizational identity Sustainability transformation Strategic adaptation Identity change regulatory disruption Automotive sector