Startup business model adaptation amid uncertainty: evidence from Brazil

Thiago Iglesias da Silva, Moacir de Miranda Oliveira Junior and Felipe Mendes Borini

RAUSP Management Journal, 2025, vol. 60, issue 1, 207-224

Abstract: PurposeThis article aims to investigate the relationship between business model adaptation, company performance and digitalization capability among startups during the coronavirus disease-2019 pandemic to determine whether there is a correlation among these aspects in uncertainty scenarios.Design/methodology/approachThe research used a mixed approach. First, it utilized a survey-based data collection method in which over 400 Brazilian startups participated, representing diverse demographic and cultural characteristics. Following the data analysis, the authors interviewed startup founders who participated in the first phase to enrich the discussion section.FindingsThe results revealed that startups with stronger digital capabilities and higher performance were associated with lower levels of business model adaptation. However, this association was observed primarily in the dimensions of value creation and value capture, and not in value delivery.Research limitations/implicationsThe limitation of this study includes the cross-sectional data collection, which prevents the assessment of causality between variables.Practical implicationsThe findings suggest that startups should carefully evaluate their business models and adaptation strategies during uncertain periods.Social implicationsThe social implications of this study lie in supporting public policies and initiatives for entrepreneurship and startups. Government agencies and support institutions can use the findings to better understand the challenges faced by startups during uncertain times, effectively guiding their assistance and resources.Originality/valueThis research contributes to the literature on business models and digitalization capability. It offers insights into the interplay between performance, digital capabilities and business model adaptation. Furthermore, the study contradicts the common sense that businesses should favor adaptation in uncertain moments, at least for startups in similar contexts.

Keywords: Uncertainty; Company performance; Startups; COVID-19; Business model adaptation; Digitalization capability (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:rauspp:rausp-07-2023-0138

DOI: 10.1108/RAUSP-07-2023-0138

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