Criminal business model and the governance of seized and confiscated businesses

Purpose The main purpose of this article is to analyse what happens to a business model when the governance of the focal organization changes, particularly when it has to re-shape its transactional network. Design/methodology/approach The article 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. Findings The article 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 it is the case of the seizure and confiscation of Mafia businesses. The article 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. Research limitations/implications The article 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. Practical implications The article has some potential managerial implications, in particular for the judicial administrator. He should encourage the construction of a new transactional network, firstly analysing 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. Originality/value The originality of the article is that it analyses criminal organizations using well-known approaches, applying them to the case of seized and confiscated business.