Reviewing the challenges of port authority business model innovation

: The port industry is in a state of flux and port authorities are increasingly expected to create new avenues of value creation and value capture by managing multiple business models. To explore the challenges accompanying this qualitative shift in competition for port authorities, this paper presents a systematic review of port research in which four business model development challenges are analyzed, including: 1. diversification of port customers, 2. requirements for new value creation, 3. changing possibilities and constraints of value capture and 4. network effects, clusters and strategic partnerships. Based on the four challenges, it is argued that business model innovation by port authorities requires changing the underlying business logic, the activities and resources and the configurational fit with other port actors’ business models. This proposition is based on a discussion on the interplay between the macro level port industry, the meso level rule structures within port systems and the micro level of port authority organizations.