Adjustments for Automotive Firms Adopting Sharing-Economy Business Models

Abstract Book of the 10th International Conference on Applied Research in Business, Management and Economics

Year: 2026

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Adjustments for Automotive Firms Adopting Sharing-Economy Business Models

Edison Moises Chamba Ortiz, Kostas Iatridis; Linda Newnes

ABSTRACT:

The rise of sharing-economy mobility platforms poses a structural challenge to legacy automotive manufacturers, whose business models have traditionally depended on vehicle ownership and sales. While prior research has extensively examined digital-native platforms, limited attention has been given to how incumbent, product-centric firms adapt to such disruption. This study addresses this gap by investigating the strategic and operational adjustments required for automotive firms to adopt sharing-economy business models, drawing on a qualitative, comparative case study of BMW and Stellantis. Building on strategic renewal theory, we conceptualise this transition as a multi-level renewal process encompassing corporate strategy, business strategy, and operations management. Our findings reveal that successful adaptation requires more than reframing cognitive identity toward mobility services; it depends critically on embedding renewal within governance structures, resource allocation, and operational capabilities. We identify divergent renewal pathways: BMW pursued an experimentation-oriented approach through joint ventures and real-options logic, resulting in reversible and ultimately discontinued initiatives, whereas Stellantis adopted a recombinative strategy through mergers, acquisitions, and governance integration, enabling scaling and profitability. The study contributes to the literature in three ways. First, it advances strategic renewal theory by highlighting the importance of governance embedding and reversibility in incumbent transformation. Second, it extends corporate strategy research by demonstrating that recombination may outperform experimentation in platform-based markets. Third, it shows that operational capabilities such as utilisation optimisation, platform reliability, and ecosystem coordination constitute critical microfoundations of renewal. These insights explain how legacy firms navigate the transition from product-centric to platform-based business models.

Keywords: Business Strategy; Corporate Strategy; Incumbents; Platform Business Models; Strategic Renewal