The main purpose of this paper is to analyze what happens to a business model when the governance of the focal organization changes, particularly when it has to re-shape its transactional network.
The paper reviews literature on governance structure of criminal organizations and uses two case studies to show two different approaches in re-shaping the business transactional network after the seizure from Mafia organization.
The paper finds three different approaches about governance structure in criminal organizations and describes what happens to a business model when the governance of the focal organization changes as is the case of the seizure and confiscation of Mafia businesses. The paper shows that when a judicial administrator is able to effectively build a new transactional network, the business he manages can survive and can also give good performance.
The paper provides two business cases, but this is not enough to give empirical evidence; this could be provided through other case studies or through quantitative methods using surveys or data provided by the Italian courts.
The paper has some potential managerial implications, in particular for the judicial administrator. He should encourage the construction of a new transactional network, first analyzing the existing network, going deeply into the content and the motivators of the relationships with the stakeholders, and deciding if such relationships can be re-formulated or must be left.
The originality of the paper is that it analyzes criminal organizations using well-known approaches, applying them to the case of seized and confiscated business.
