Determining the role of the operating context on business model innovation in Botswana’s mining Industry

Abstract

The global economy continues to be pummelled by effects of volatility, uncertainty, complexity, and ambiguity (VUCA), as the world continues to experience the effects of emerging from an unprecedented global pandemic and transitioned into a geopolitical storm due to the Ukraine – Russia War. The resilience of the global mining industry finds itself under pressure to deal with competing demands for responsible and sustainable mining in which there is creation of shared value and heightened governance and reporting expectations which must be considered within the continuum of global, regional, and national contextual settings. The study thus undertook to determine the effects of the local operating context of mining firms in Botswana on their ability to reconfigure their mining business models to create sustained value and capture it whilst meeting the varied expectations on competitivity, sustainability and social responsibility. The study explores how firms innovate on their business models considering the contextual antecedents at paly and how firms exploit their dynamic capabilities to effect business model innovation (BMI). The ability to leverage dynamic capabilities for BMI will also be determined through the lens of the complexities levied upon by the organisation models in a country where most mining firms are owned and/or co-owned by multinational companies (MNC). A systematic theoretical and analytical literature review was carried out with 12 candidates interviewed using a semi-structured interview protocol. Key insights emerging from the study confirm extant literature on the criticality of understanding the contextual antecedents on BMI and their factors that moderate or mediate BMI performance. A conceptual framework is proposed for application businesses and may also adapted by other sectors to enable key strategic choices and decisions in re-thinking business models to meet multiple and pressing competing business imperatives. The researcher concludes with recommendations for further studies to extend further with empirical support the theoretical underpinning constructs and drivers of BMI in different context and industries.