Business Model Development and Adaption of VET Service Providers in International Contexts

Abstract 

Context: The attraction to internationalize vocational education and training (VET) generates various business models among German VET providers seeking new markets and expanding their portfolio of services internationally. To support German VET providers in their internationalization, the Federal Ministry of Education and Research (BMBF) has created two funding programs (BEX and IBB) for the development of international business models in VET. In the context of this paper, adaptations of the business models with regard to the course of the projects over both funding periods are considered in order to find out what factors were considered by the VET providers in that process. 

Approach: 18 projects from two funding lines (BEX and IBB) were analysed, each project is a consortium of at least a VET provider and a research institution. The sample includes all funded projects in which at least one organization was funded subsequently in both funding lines. This allows for better comparability between the cases and between the two funding lines. The research design was thus constructed as a longitudinal study. The data includes project documents and qualitative interviews with project actors. The nine categories of the Business Model Canvas according to Osterwalder and Pigneur were applied to identify adoptions made in the business models of the selected projects. 

Findings: Substantial changes to the original project planning with regard to the business models can be seen with reference to the reduction of the complexity of the offered VET services. Adjustments to the business models are primarily determined by industrial factors, especially with regard to the stakeholders involved, and changes based on market factors to adapt the VET services to the needs of partners and customers in the target country. A considerable part of the adjustments to the business models are also based on pandemic-related factors. 

Conclusion: It can be assumed that the analyzed VET providers have a high level of problem-solving expertise due to the consortium approach. The digitalization of some elements of the business models can possibly be understood as an innovation driver so that innovations can be expected. Further research in the form of a journal contribution will look at these and other aspects in more detail. It would be necessary to consider degrees and patterns of innovation regarding the analysed projects and the database presented.