Business model pivoting and digital technologies in turbulent environments

Maria Elisavet Balta, Thanos Papadopoulos and Konstantina Spanaki
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Maria Elisavet Balta: Kent Business School, University of Kent
Thanos Papadopoulos: Kent Business School, University of Kent
Konstantina Spanaki: Audencia Business School

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Abstract: Purpose This paper aims to draw on the Dynamic Capabilities View to discuss how small and medium enterprises (SMEs) use digital technologies to develop digital capabilities that will enable them to change their current business model and trajectory, that is, to pivot-within turbulent environments, and subsequently to survive and grow. Design/methodology/approach The authors collected and analysed qualitative data from 26 SMEs in South-East England that have used digital technologies to pivot during the pandemic. The data was collected via in-depth semi-structured interviews. The authors analysed the data by creating first-order concepts, second-order themes, and aggregating dimensions. Findings The findings suggest that (1) digital technologies enable pivoting by facilitating the creation of the following digital capability types: "digital sensing", "digital seizing" and "digital transforming"; (2) Each of these digital capability types is underpinned by micro-foundations (sub-capabilities) and shaped by the digital culture of the organisation. (3) these capabilities are triggered by the turbulent environment and the existing digital technologies, and are shaped by the digital culture. Originality/value The authors contribute to the literature of digital entrepreneurship as the authors illustrate (1) how the micro-foundations of digital capabilities, as facilitated by digital technologies, assist pivoting; and (2) the process from key activities during pivoting to second-order themes that represent micro-foundations to digital (dynamic) capabilities for pivoting in turbulent environments. The study highlights the importance of digital pivoting for businesses in the UK Southeast that have many aspirations for growth and innovation, whilst striving to address multiple challenges including digital divide and literacy, inflation and cost of living crisis, as well as supply chain issues.

Keywords: pivoting digital technologies digital capabilities opportunities barriers SMEs UK Southeast; pivoting; digital technologies; digital capabilities opportunities; barriers; SMEs; UK Southeast (search for similar items in EconPapers)
Date: 2024-03-20
New Economics Papers: this item is included in nep-cse and nep-sbm
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Published in International Journal of Entrepreneurial Behaviour and Research, 2024, 30 (2/3), pp.773-799. ⟨10.1108/IJEBR-02-2023-0210⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04513406

DOI: 10.1108/IJEBR-02-2023-0210

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