Abstract

Digital technologies are reconfiguring business ecosystems by decoupling value delivery from place. This research-in-progress develops a process model of forced digital transformation using the Noryangjin examination village in Seoul, South Korea. Combining document analysis and netnography, and mobilising social exchange theory, we show how social disruption, shifting social values, and changing customer demand interact with increased accessibility and proliferation of online learning to convert physical into online patronisation. Primary service providers migrate to digital channels, while auxiliary providers dependent on co-location face withdrawal or hybridisation. The model explains ecosystem-level decline as cascading reassessments of reciprocity and dependence, and outlines actionable levers for business adaptation and place-sensitive policy. Findings extend ecosystem and exchange perspectives to macro-level outcomes.

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