The Evolution of Business Models in Response to Global Competitive Pressures

Abstract

The ever-faster process of globalization has produced drastic alterations in the classical business model framework and forced organizations operating in any industry to implement radical shifts in their strategies. The current research attempts to examine the influence of competition processes in the global environment on business models transformations. In particular, the focus will be placed on examining the processes of digitization, platforms, and value chain restructuring. For the purpose of empirical testing of the hypothesis suggested, a unique research methodology combining qualitative and quantitative methods has been used based on surveying 320 multinational corporations from 18 industrial segments (2015-2024) and conducting interviews with 42 executives. According to the results obtained, companies operating in competitive industries are 2.7 times more likely to involve platform-based approaches than organizations facing relatively weak competition. Moreover, according to the results of the conducted research, the relationship between expenditure on the digital transformation and resilience of a business model is positively correlated (r = 0.74, p < 0.001). There are three major directions for evolution: (i) digitalization-driven disruption, (ii) ecosystem orchestration, and (iii) value chain internalization. Results of regression analysis indicate that innovation potential, market freedom, and institutional quality are key factors behind effective adaptation. In addition to contributing new knowledge by means of a theoretical framework namely the Competitive Pressure-Innovation Response (CPIR) model—the paper adds to previous contributions like Porter's Five Forces, Business Model Canvas, and Dynamic Capabilities theory.