Date of Award

Fall 2023

Document Type

Open Access Dissertation

Department

Moore School of Business

First Advisor

Tatiana Kostova

Second Advisor

Kendall Roth

Abstract

A business model is defined as the way a firm organizes its available resources to deliver and capture value. It can be simplified using the RCOV framework which splits the model into resources and competences, organization, and value propositions. However, the interactive nature of the components still creates internal complexity that must be managed without undermining the competitive advantage. This internal system is also subject to a multiplicity of contextual pressures, particularly as it crosses national borders. A cross-border business model has at least one of its components in multiple country environments, thus it faces variation in economic, competitive, technological, political, social, and institutional demands. This dissertation explores how the multiple external demands impact the business model and generate different adaptive responses. An inductive case study which focuses on a single business model within a multinational corporation in the aviation engine services industry provides several embedded cases of business model adaptation (BMA) relative to the base model. These examples serve as the basis for developing three new theoretical insights on business model adaptation. First, a two-by-two typology of business model adaptation demonstrates how the internal system is changed in response to the multiplicity of demands. The degree of integration (low or high) and the nature of the response (reduce or expand) are considered. Second, variation in the external pressures is classified into a typology of effects from the set of multiple demands on the base model. Many times the type of external pressures, i.e. economic or institutional, are assumed to be competing or conflicting, however, the external demands may be congruent, conflicting, orthogonal, neutral, or some combination of these forces. It is critical to consider them together relative to the base model despite the type or source. The final contribution integrates these two typologies to form a related typological theory which integrates the BMA responses with different combinations of external effects. Propositions are suggested relating the types of adaptive responses to the nature of the external demands relative to the base model.

Rights

© 2024, Kurt Norder

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