scholarly journals Risk Framing and Business Model Adaptation: A Conceptualization Based on Threat-Rigidity Theory

2020 ◽  
Author(s):  
Camilla Aarøen ◽  
Marcus Selart
Keyword(s):  
Business Model ◽  
Rigidity Theory ◽  
Model Adaptation ◽  
Threat Rigidity ◽  
Risk Framing

scholarly journals Risk framing and business model adaptation: A conceptualization based on threat-rigidity theory

2020 ◽  
Author(s):  
Camilla Aarøen ◽  
Marcus Selart
Keyword(s):  
Business Model ◽  
Business Models ◽  
Rigidity Theory ◽  
Model Adaptation ◽  
Risk Seeking ◽  
General Managers ◽  
Potential Gain ◽  
External Threat ◽  
Threat Rigidity ◽  
Risk Framing

Firm leaders’ inclination to adapt their business model is sensitive to how risk is framed (as an external threat or an opportunity) in the macro-economic environment. We apply threat-rigidity theory to examine the relationship between risk framing and business model adaptation. We also investigate if emotionality has explanatory value for how managers adapt to business models. We test our hypotheses in a field experiment involving 134 Scandinavian managers. Here, we relate managers’ inclinations to adapt to different business models to different risk scenarios. The results reveal that, in general, managers are more risk seeking in gain scenarios than in loss scenarios. This finding is in line with the threat-rigidity theory. Emotionality was found to relate more to risk aversion than to risk seeking in the domain of potential gain. We argue that emotionality has explanatory value for how managers adapt to business models, because emotions are key influences on risk perception.

Internationalisation and Business Model Adaptation: A “Five-Vs” Perspective

2021 ◽  
pp. 34-58
Author(s):  
Christian Nielsen ◽  
Kristian Brøndum Kristiansen ◽  
Svetla T. Marinova
Keyword(s):  
Business Model ◽  
Model Adaptation

Design leaps: business model adaptation in emerging economies

2016 ◽  
Vol 10 (2) ◽  
pp. 105-124 ◽  
Author(s):  
Sunil Sharma ◽  
Mukund R. Dixit ◽  
Amit Karna
Keyword(s):  
Boundary Conditions ◽  
Emerging Markets ◽  
Business Model ◽  
Emerging Economies ◽  
Emerging Market ◽  
Model Adaptation ◽  
Design Features ◽  
Content Type ◽  
Business Opportunities ◽  
Contextual Intelligence

Purpose Firms take design leaps when they imitate an established business model developed either by another firm or in another market to create business opportunities. While recent research has suggested the use of contextual intelligence for imitation, the exact process of adaptation of a business model is not fully understood. The purpose of this paper is to outline the process through which an emerging market firm adapts a developed market business model for creating business opportunities in the local market. Design/methodology/approach This paper investigates the journey of Air Deccan, the pioneer low-cost airline in India, from its founding until its successful adaptation of a (Western) business model and eventual failure. The authors use a qualitative case-based approach to study business model adaptation. Findings The authors find that adaptation involves the incorporation of following design features: novelty to overcome problem of institutional voids, elasticity to exploit unexpected increase in demand and efficiency to serve large volumes. Based on the evidence, the authors suggest the introduction of global efficiency measures as the boundary conditions of business model adaptation in emerging markets. Research limitations/implications The paper contributes to the literature on business models by suggesting elasticity as a unique design feature relevant for emerging markets. This paper provides granular understanding of business model toxicity. Practical implications Entrepreneurs and managers – looking to enter emerging markets through opportunity creation – should focus on providing contextually novel design features in the adapted business model. The authors also caution practitioners against the perils of toxicity arising out of combining contextual novelty with efficiency. Originality/value Recent literature suggests that multinationals need contextual intelligence to successfully monetize their investment in emerging economies. This paper provides rich description of the challenges faced by entrepreneurs in emerging markets, local innovations used to overcome them and boundary conditions.

Is Updating Play or Work?

2011 ◽  
Vol 1 (4) ◽  
pp. 37-47 ◽  
Author(s):  
Damien Joseph ◽  
Mei Ling Tan ◽  
Soon Ang
Keyword(s):  
Turnover Intentions ◽  
Future Research ◽  
Rigidity Theory ◽  
It Professionals ◽  
Research Directions ◽  
Knowledge And Skills ◽  
Threat Rigidity ◽  
Future Research Directions ◽  
Behavioral Orientation ◽  
It Knowledge

This study proposes that IT professionals’ behavioral orientation towards IT knowledge and skills updating demands can take on two contrasting forms: updating-as-play or updating-as-work. Drawing on threat-rigidity theory (Staw, Sandelands, & Dutton, 1981), the authors hypothesize that IT professionals who feel threatened by professional obsolescence are more likely to approach updating-as-work more than as play. Results from a sample of IT professionals are consistent with threat-rigidity theory (Staw et al., 1981) in that the threat of professional obsolescence is negatively related to updating-as-play and is positively related to updating-as-work. The authors also find that updating-as-play is negatively related to turnaway intentions and that updating-as-work is positively related to turnover intentions; these findings are consistent with IT theories of job mobility. The authors conclude this study with a discussion of these results and propose future research directions.

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