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- Business model adaptation in response to an exogenous shock: an empirical analysis of the Portuguese footwear industryPublication . Corbo, Leonardo; Pirolo, Luca; Rodrigues, VascoBusiness models have received increasing attention in both academic and managerial communities. However, little attention has been paid to how business models change in response to extreme events. This topic is of critical importance since failure to achieve adaptation in a timely manner can lead to negative consequences such as a significant decrease in firm value or bankruptcy. This study explores how the business model paradigm of the Portuguese footwear industry changed following China’s entry into the World Trade Organization in 2001. The empirical results suggest that the shock acted as a trigger for change for the Portuguese footwear firms which reflected in the adoption of a new business model characterized by speed and flexibility in the manufacturing process, faster response to customer needs and, in specific cases, in downward integration through the creation of own brands selling directly to final consumers. This result, however, was not the outcome of a sudden change but rather the consequence of a planned adaptation strategy led by a key industry actor that acted as a network orchestrator coordinating the actions of the Portuguese footwear firms. The implications of these findings as well as directions for future research are discussed in the last part of this study.
- Emergence and evolution of an entrepreneurial ecosystem: the case of PortoPublication . Corbo, Leonardo; Almeida, JoãoCurrent work on entrepreneurial ecosystems is still underdeveloped, focusing prevalently on successful case studies such as Silicon Valley and less on peripheral areas where entrepreneurship is a nascent but growing phenomenon. In this paper, we examine the emergence and evolution of the entrepreneurial ecosystem of Porto, a city located in the north of Portugal, which has historically been an industrial hub but has witnessed a proliferation of start-ups in recent years. We find that for an entrepreneurial ecosystem to emerge it is of critical importance that one or more players assume the role of entrepreneurial hubs, even if in the initial stage interaction between these actors is limited. However, for an entrepreneurial ecosystem to grow additional factors are necessary including a wide range of experienced investors and a strong level of interaction within the ecosystem. We discuss the implications of our findings for research on entrepreneurial ecosystems and outline a possible avenue for future inquiry.
- A new order of things: network mechanisms of field evolution in the aftermath of an exogenous shockPublication . Corbo, Leonardo; Corrado, Raffaele; Ferriani, SimoneThis study examines the role of a major environmental shock in triggering change in the social structure of an organizational field. Based on the longitudinal analysis of changing network configurations in the global airline industry, we explore how logics of attachment shift before, during and after an exogenous shock and how the rewiring of network ties in response to the shock may act as a countervailing force to the network dynamics that drive field stratification. Using the terrorist attacks of September 11, 2001 as a natural experiment, our work reveals how shocks may affect key mechanisms of network evolution thus altering tie distribution and access among members of the field. Overall this article contributes to emergent literature on field dynamics by exposing the evolution of interorganizational dynamics when external events produce unsettled times that render extant logics brittle and open prospects for change.
- Joint impact of airline market structure and airport ownership on airport market power and profit marginPublication . Choo, Yap Yin; Corbo, Leonardo; Wang, KunThis paper investigates the joint impacts of downstream airline market structure, airport ownership structure, concession services, and low-cost carrier (LCC) presence on airport market power and profit margin. Lerner indexes for a sample of 61 major airports around the world were calculated for the period 2008–2014. Then, regression analysis was conducted to identify the determinants of the airport Lerner index. We find that a more concentrated downstream airline market would reduce the profit margin for a public airport but increase the profit margin for a private airport. A higher share of concession service is found to decrease the airport's overall profit margin (accounting for both aeronautical and concession services). Airports with significant LCC presence have a lower profit margin. Finally, the concentration in airline market is found to have a larger negative impact on airport aeronautical price than on the concession price.
- In search of business model configurations that work: lessons from the hybridization of Air Berlin and JetBluePublication . Corbo, LeonardoThis paper examines the rise of a distinct alternative to the traditional business model dichotomy between low-cost and full-service carriers (i.e. the hybrid business model) and questions its viability as an alternative for growth and profitability. Using a comparative assessment of business model innovation practices of two well-reputed carriers, Air Berlin and JetBlue, the paper highlights the importance of taking into account several components of a business model when deciding to experiment with it as these choices have important implications for an airline's performance. Our results suggest that, following the transition from a no-frills to a hybrid business model, a misalignment between the value proposition and the other elements of the business model will hinder an airline's ability to achieve a sustainable competitive advantage.
- How do non-technological shocks affect interfirm collaboration?Publication . Corbo, LeonardoShocks generate high uncertainty creating the need for firms to search for solutions to cope with the changed business landscape. One such response is the creation of new partnerships. Yet, do all shocks affect the interorganizational responses that follow equally? This article proposes that distinguishing between technological and non-technological shocks can be a useful lens to look at how interfirm collaboration changes in the face of a shock. Using the September 11, 2001 terrorist attacks as an illustrative example of non-technological shock, the authors describe how it affected collaboration in the air transport industry.