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Living With Transformations of International Opportunities: Drivers of Business Model Change in Global Value Chains
Abstract
This study addresses the question of how organizations, as parts of global value chains, may respond to, and in some situations initiate, transformations of international opportunities and how that is related to the business model change. It examines the forms of international opportunities and argues that different sources of transformation affect the viability of these opportunities, thereby driving the ways in which organizations live with these transformations. These, in turn, connect to the changes in the firms' business models through 1) transformation intensifying, 2) transformation utilizing, 3) shifting, and 4) exit activities. It suggests that patterns can be detected regarding the alignment of the present manifestation of the international opportunity, the transformation type that influences it, and the ways in which these situations are met. The chapter develops a framework that advances understanding the connectedness of opportunities, business models, and global value chains in the era of discontinuities.
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