At Melting Summits: How do Ski Resorts Transform?

Abstract: The ski industry represents an economic engine in many regional areas across the globe. However, climate change, with rising temperatures and increasing weather variability, is putting the industry at considerable risk. Because of these pressuring circumstances, numerous ski resorts now find themselves at a crucial point, faced with the pivotal decision of whether and how to innovate and transform their offerings. In parallel, there has been a growing recognition in academic literature of the increasing turbulence and complexity of business environments. Thus, scholars are increasingly shifting focus to viewing firms as part of ecosystems where actors depend on each other and jointly create value. Previous literature on ecosystem transformation has predominantly examined firms' internal capabilities for managing change as well as early-to-midstages of ecosystem lifecycles. Consequently, two intriguing research gaps emerge: examining the influence of (1) contextual factors on ecosystem transformation in (2) mature ecosystems, facing the risk of decline. Therefore, this study aims to investigate how contextual factors influence how ski resorts, representing mature ecosystems, transform. This is done through a theoretical lens of business ecosystems, business model innovation, and embeddedness theory. Through a qualitative comparative case study on Swedish privately-owned ski resorts, a total of 26 interviews were conducted. Our findings indicate that contextual factors can have a profound influence on how ski resorts transform. Firstly, we identify two additional factors beyond established theory - intermediary and local identification - that were found to significantly contribute to a ski resort's transformation opportunities. Secondly, we outline two distinct approaches that differed in seven aspects, where the analysed ski resorts opted for entirely divergent paths. A notable distinction in these mature ecosystems was that established norms and practices from before the transformation had a significant influence on all three phases of the process. Findings from this study contribute to scholars by creating a more holistic understanding of ecosystem transformation through providing novel insights into a firm's context and process in mature stages. Thus, extending insights regarding the full lifecycle of ecosystems. Furthermore, the findings contribute to practitioners by providing valuable insights into navigating ecosystem transformations. In particular, how cultivating strong relationships where individuals connect to a place, community, and lifestyle can increase collective transformative power to drive meaningful change.