Business modeling under adversity: Resilience in international firms

Abstract

Research SummaryThis study employs resilience theory and examines the dynamics of business modeling in international firms that enable them to resist environmental shocks under the adverse conditions of a global pandemic. Our multiple‐case study shows that firms develop various dynamic states of their business models (BMs) during the resilience process; each state differs in terms of the scope of BM change and the concurrent degree of BM innovativeness. Shifts in dynamic states result from attaining certain resilience capabilities. We contribute to the dynamic view on BMs, and the process perspective on organizational resilience; we also advance BM research in the context of internationalization.Managerial SummaryUnder conditions of extreme disruptions that take the form of long‐lasting adversity, international firms need to continuously adjust their BMs to brave force majeure and remain resilient. This study takes a dynamic perspective on business modeling and examines how international firms develop different dynamic states of their BMs to stay resilient under extreme uncertainty; each state differs in terms of the scope of BM change, concurrent degree of BM innovativeness and the attained resilience capabilities. We show that business modeling is a continuous task of international firms that allows them not only to resist adversity but also to open new markets.

Internationalization and Sustainable Hotel Competitiveness: Resilience and Network Ties to Increase Tourism Sustainability

“…Uncertainty and the need to adapt to unforeseen business-related changes increase when operating on an international scale [12]. These firms' responses to adversity are likely to be more complex than when in a domestic environment, as conducting business across borders adds numerous levels of institutional and market uncertainty [48,49].…”

“…Business resilience in an international context requires greater adaptability, increased resilience, and more concerted coordination of foreign operations [11]. Although the number of studies focusing on sustainable resilience has increased in recent years, the relationship between resilience and internationalization has not yet been widely explored [12]. Thus, there is a need for research in this direction, and the purpose of this paper is to find out whether resilience can have a mediating effect between the degree of internationalization undertaken by hotel companies and their achieved competitiveness, increasing sustainable development in the tourism industry.…”

Assessment of business resilience abilities: the case of industry and commerce of Santa Maria – RS

“…A similar and related term commonly used in the field of resilience is 'adversity.' Many scholars define resilience as the ability to overcome adversities; however, formal definitions of 'adversity' are not usually presented (Bullough & Renko, 2013;Galkina et al, 2023;Margolis & Stoltz, 2010). Even so, it can be inferred that there is an underlying acknowledgment of adversity as a situation or event that poses a threat or difficulty to business management.…”