How incumbents respond to digital transformation by adapting their business model: a multiple case study in the Italian Museum sector

Navigating technological discontinuities to adapt incumbent business models in terms of value creation and capture poses a significant challenge in today's dynamic landscape. Integrating new technologies while preservingthe value of existingactivities demands innovative strategies that go beyond conventional adaptation processes. Priorresearch has delvedinto business model adaptation in light of technological shifts, underscoring the significance of complementarities between core knowledge and new technologies alongside vertical integration's role. Nonetheless, a comprehensive understandingof incumbents' specificactions to leveragethese adaptations for enhancingcore knowledge and traditional complementary assets remains elusive in academic discourse. Drawing from the framework of Pesce et al. (2023), which proposes four levelsof business modeladaptation (adoption along the existing value chain, local upstream integration, convergence, andexploiting connections), this thesis aims to investigate the main elements that characterize each level, i.e., core knowledge, digital complementary assets, adaptation mechanisms and outcomes, and how they interrelate. To do so, a multiple case study with 10 Italian autonomous museums has been conducted to analyze their adaptations to technological discontinuities from 2014 to 2022. These museums were granted strategic and financial autonomy through a legislative reform aimed at supporting these organizationsin embracing digital transformation. The within-case analysis explores the evolution of their digital integration efforts and strategic responses to technological changes over time, providing a clear picture of the adaptation process, whereas the cross-case analysis identifies different/common strategic patterns of adaptations. The integration of new technologieswhile preserving the value of existing activitiesnecessitates innovative strategies that go beyond conventional adaptation processes.Acorrelation analysis of the directors’ resumescomplementsthis investigation, highlighting how they impact the levels of business modeladaptation. Theoretical contributions of this thesisadvance understanding of business model adaptationin response to technological advancements by illustrating how museums leverage digital tools to enhance their core competencies and resourcesand shedding light on the strategic integration of digital technologies to enhanceorganizational capabilities. Practical implications provide actionable insights for managers navigating technological changes. It underscores the significance of judiciously harnessing digital technologies to optimize operational efficiency and strengthen core competencies. By emphasizing the importance of strategic digital adoption, the study offers practical guidance for managers seeking to adapt to technological disruptions effectively.