IT carve-out projects are complex and cost-intensive components of M&A transactions. Existing research sheds little light on the determinants of IT carve-out project complexity and/or its effects on divestor performance. Instead, research has focused on the post-acquisition IT integration project and acquirer performance. This paper presents the first divestor-centric model of IT transactions from the divestor to the acquirer when a Business Unit in a Multi-Business Organization (MBO) is carved out and integrated into another MBO. The model explains how divestor business and IT alignment pre-conditions contribute to increased IT carve-out project complexity. Such complexity increases IT carve-out project time to physical IT separation and creates IT stranded assets, which decrease post-divestment business, IT alignment and divestor performance. The current recommended strategy of adopting transitional service agreements (TSAs) to handle IT carve-out complexity is compared with two new proactive strategies derived from the model. TSA-based strategies restrict the divestor from both decommissioning IT stranded assets and reconfiguring its IT assets to support its new post-divestment business strategy. The two new strategies address IT carve-out complexity without incurring the negative effects from adopting TSAs.

Digital business model innovation (BMI) is critical to achieving and sustaining competitiveness in technology-driven environments. In those environments, firms must not only sense changes to identify opportunities but also effectively seize them in BMI. Therefore, sensing and seizing cannot be considered as isolated dynamic capabilities, but must be combined for successful BMI. However, research on sensing and seizing does not offer compelling suggestions for firms that struggle with connecting both while pursuing digital BMI. We use qualitative configurational analysis (QCA) to analyze a sample of 49 case studies on digital BMI to identify the antecedents that firms sense before seizing these changes with digital BMI. Based on ten configurations of sensing (represented by six antecedents) and seizing (represented by four BMI types), we explain the relationship between sensed antecedents and seized digital BMI. In addition, we derived four variables that explain “what” and “how” firms connect sensing and seizing. Based on the sensing-seizing connection, we introduce consolidating BMI as a new type of BMI unique to the digital context. This novel type enables firms to exploit and explore new BMs and subsequent digital BMIs through the means of digital infrastructure. This study extends the understanding of how different business models emerge and how firms create digital BMIs.

COVID-19 has created many constraint-related challenges for humans in general and organisations in particular. Specifically, businesses that require physical contact, such as mobility providers, have been severely impacted by the crisis. This paper reveals how mobility platforms and their ecosystem of actors have adapted faster than their non-platform competitors to become resilient. Whereas current research on resilience explicitly deals with the concept of organisational resilience, community resilience, or IT resilience, socio-technical characteristics of digital platforms have not been investigated. We build on a case survey approach, including heterogeneous qualitative evidence of 266 actions of 171 analysed mobility platforms. The results show five archetypes of how mobility platforms leverage their platform-based nature and the ecosystem to build resilience. Based on this, we develop the concept of platform ecosystem resilience as leveraging socio-technical factors of digital platforms and ecosystems frugally to design, deploy and use situation-specific responses to prepare for, endure and adapt by capturing new opportunities and engaging in transformative activities to cope with exogenous shocks and become resilient for future disruptions. Our results emphasise the importance of platform ecosystems for practitioners and policy planners to develop the “new normal” rather than resuming existing practices.