Green innovation in the steel industry: Analyzing FINEX technology development through Technology Innovation Systems and Strategic Niche Management

Abstract

This study examines the development and commercialization of FINEX technology at POSCO through the combined lenses of Technological Innovation Systems (TIS) and Strategic Niche Management (SNM). As a radical smelting reduction process developed by an incumbent in the steel industry, FINEX offers a rare case of breakthrough green innovation emerging from within a dominant regime. Through a qualitative case study, we trace the evolution of the FINEX innovation system across three stages, highlighting the roles of entrepreneurial leadership, shared culture, DUI (doing, using, interacting) learning, and organizational bricolage. These factors enabled POSCO to overcome technological and institutional barriers and foster niche stabilization. Rather than displacing the blast furnace regime, FINEX co-evolved with it—improving efficiency and resource use. We conceptualize this transition as ecological succession and propose extensions to TIS and SNM frameworks. The findings offer insights into incumbent-led sustainability transitions in capital-intensive industries.