Business Model Redesign for Resilience and Sustainability: Mechanisms of Organizational Structural Flexibility, Resource Reconfiguration, and Capability Renewal

Abstract

In today’s volatile world, businesses face the dual challenge of increasing global uncertainty and the urgent need to transition toward sustainability. To thrive under these conditions, they must go beyond surface-level changes and fundamentally rethink how their business models operate—ensuring they not only survive disruptions but also contribute to sustainable progress. Despite growing interest in this area, existing studies often overlook the internal organizational mechanics that drive meaningful transformation. This research takes a design science approach to fill that gap, weaving together insights from dynamic capabilities theory and organizational design theory. The goal is to build and validate a comprehensive model that links three crucial elements: structural flexibility within organizations, the ability to reconfigure resources effectively, and the renewal of internal capabilities. Using a mixed-method approach, the study analyzes 280 valid survey responses and combines them with qualitative data drawn from publicly accessible documents and rigorously coded case studies. Additionally, three secondary data vignettes provide further depth. The findings reveal several key insights: Flexible organizational structures are essential for kick-starting meaningful changes in business models. This flexibility facilitates smarter, more effective use of resources, which enhances the organization’s ability to adapt and grow. Innovative business models become the vital connection between what a company can do internally and how well it performs in terms of resilience and sustainability. Learning capabilities within the organization amplify this entire process, acting as a catalyst that strengthens each link in the chain. Ultimately, this study not only opens up new ways to understand the inner workings of dynamic capabilities but also offers a practical blueprint for companies looking to build business models that are both resilient and sustainable in today’s complex landscape.