Business Strategy: Evolving the Build, Borrow, Buy Strategic Framework - Avoiding the Implementation Trap

There is a focus in business research on developing and understanding models, processes, and frameworks to provide insight into how these concepts are related and how this work can guide the implementation of business strategies.

By Michael Quartermain, C.Mgr. | Chartered Managers Canada

Business leaders need guiding frameworks and strategies that support implementing and operating new business strategies without being saddled by legacy approaches (Lara Machado et al., 2023). With the dynamic nature of the business environment today, innovative technologies, geopolitical events, and social impacts, updating frameworks to include additional strategies are needed to keep pace with the macro environment. Business Bridge, BOT (Build, Operate, Transfer), and Bot (Artificial Intelligence) are three concepts of how the Build, Borrow or Buy: Solving the Growth Dilemma, developed by Capron and Mitchell (2012), might be expanded. Combined with these additional concepts, it can support an evolving view and approach to strategic resource strategies to help avoid the implementation trap (Capron & Mitchell, 2012).

“One-and-done never is. Continued success relies on consistent effort, which requires a learning mindset. When planning a strategy, we often over-examine the what, how and when. We should not neglect the who, and we need to allow for the what-if.” (Byzychy, 2025)

Literature Review

The strategic decision-making framework of Build, Borrow, or Buy: Solving the Growth Dilemma, developed by Capron and Mitchell (2012), has helped guide firms in determining the approach for resources and capabilities necessary for growth. The framework highlights the importance of choosing the right pathway: develop internally (build), form partnerships (borrow), or acquire other firms (buy) (Capron & Mitchell, 2012). Capron and Mitchell (2012) argue that firms often fall into the implementation trap by over-relying on one strategy, limiting their growth potential, or chasing the wrong strategy. This can be driven by internal organizational design or leadership biases and preferences. The Build strategy involves leveraging internal capabilities to develop new resources, as exemplified by Eli Lilly's investment in R&D to create innovative drugs (Capron & Mitchell, 2012, p. 54). The Borrow strategy focuses on forming alliances or partnerships, such as Cisco Systems' strategic alliance with BBVA, to accelerate digital transformation and foster innovation by accessing new technologies (Capron & Mitchell, 2012, p. 89). The Buy strategy entails acquiring other companies to quickly gain new capabilities, as illustrated by Johnson & Johnson's 1979 acquisition of Technicare (Capron & Mitchell, 2012, p. 102).  Recent literature, particularly from the human resource, talent management and operations areas, suggests additional strategies that can be “borrowed” and adapted to address the complexities of the modern business environment.

• The Bridge strategy involves an internal facing view, creating connections or transitions to facilitate growth. Deng (2024) and Tews (2023) discuss how bridging strategies can help organizations overcome skill gaps and enhance collaboration across different departments in talent development. This is like the Build – internal exploratory environment described by Capron & Mitchell (2012), where informal or formal teams work on innovative ideas, resources, or business models. A Business Bridge expands on the Bridge approach in talent development. It is different because it has an internal and external focus. It is a term used to describe a strategic approach to networking, collaboration and partnerships that can include all three elements of build, borrow, and buy (Bullard, 2024).
   
• In the context of artificial intelligence (AI), Bots refer to automated software programs designed to perform repetitive tasks. Bots can manage various functions like customer service, data entry, and process automation. Chatbots, for instance, can perform repetitive tasks, improving efficiency and freeing human resources for more complex activities (OpenAI, 2023). This approach enhances operational efficiency and allows firms to focus on strategic initiatives that require human expertise.
   
• The Build-Operate-Transfer (BOT) model is a strategic approach often utilized in large-scale projects and or public-private partnerships (3P). It involves a private organization building a project, operating it for a certain period to recoup investments and generate profit, and eventually transferring ownership to the original entity (Hayes, 2025; Rajan,2025). The Build-Operate-Transfer model is a contract in which a private company is granted a concession to finance, build, and operate a project for some time, typically 20 to 30 years, before transferring control back to the public entity (Hayes, 2025). This model has a specific use, often for large-scale infrastructure projects (Quang, 2024).

BOT, Bot, Business Bridge Strategies

BOT, Bot, and Business Bridge strategies share similarities with the traditional Build, Borrow, and Buy strategies (Capron & Mitchell, 2012). The BOT, Bot and Business Bridge introduces unique and nuanced elements that address specific needs in resource planning and organizational growth that can be considered in strategy decision-making.

Build-Operate-Transfer (BOT)

The BOT has varying elements of build, borrow and buy; however, the model's operational phase is unique and not present in the traditional Build, Borrow, Buy framework (Capron & Mitchell, 2012). This strategy is not limited to an either-or approach but can cut across and utilize all three elements of the build, borrow, and buy approaches. BOT involves strategically using collaborations, networks, and partnerships to access internal capabilities and external resources to deliver a project. The BOT strategy results in a transfer of ownership, though the timing and nature of the transfer differ through more structured processes (Hayes, 2025). 

The risk in a BOT strategy is shared between the partners versus the buy strategy, where the acquiring operation might bear the  bulk of the risk (Rajan, 2025). This additional approach can help organizations make strategic decisions about best-acquiring resources, leading to more efficient and effective resource allocation, acquisition, and adaptation to changing market conditions (Pathak, 2024). Disadvantages of this strategy might include the complexity of planning and implementation, the allocation of risks for the organization and its partners, and its limited fit for business situations (Pathak, 2024).

Artificial Intelligence (AI) Bots
AI Bots refer to automated software programs that can enhance efficiency and are scalable, complementing traditional strategies by providing a technological edge (OpenAI, 2023). The Bot represents the strategic use of technology, particularly AI tools, to augment workforce capabilities and address internal resource gaps, complementing the traditional Build, Borrow, Buy framework (Capron & Mitchell, 2012). An example is a customer service Bot that manages common inquiries on a company's website, freeing up human agents for more complex issues. Bots automate repetitive tasks, improving efficiency and reducing the need for human intervention. Bots can handle large volumes of tasks simultaneously, making them highly scalable (OpenAI, 2023). Bots provide consistent performance and responses, ensuring uniformity in task execution.

This approach is different because it can cut across all three Build, Borrow, Buy (Capron & Mitchell, 2012) strategies. Disadvantages to this approach might include Bots struggling with nuanced or complex human conversations, managing personal data can raise privacy issues, Bots can inadvertently be biased resulting from bias, and technology can open a company to cyberattacks, such as phishing or identity theft (Marr, 2023).

Business Bridge

The Business Bridge concept is a strategic networking, collaboration, and partnership approach. It supports the connections a business needs to navigate challenges and opportunities in the market, contributing to a company’s growth and resilience (Bullard, 2024). This approach can open new markets and customer bases and be a door to shared resources, expertise, and support. As a strategic approach, A Business Bridge is not just about creating connections but also about fostering a culture of collaboration and innovation within a business operating environment. This strategy provides advantages around alignment of the goals, reducing the risk of misalignment, and promoting a positive culture with guardrails, helping employees work towards successful outcomes (Brzychcy, 2025). The advantages can become disadvantages if the execution does not get the continuous effort to maintain alignment, which can be time-consuming and result in misalignment between stakeholders, resulting in bottlenecks (Brzychcy, 2025).

Conclusion

The Build, Borrow, or Buy framework (Capron & Mitchell, 2012) helps organizations make informed decisions about their growth strategies by considering their existing resources and, through a resource-based view of the organization, identify gaps. By balancing approaches, firms can optimize their growth and remain competitive in a dynamic business environment (Capron & Mitchell, 2012).

The expanded framework adds the strategies of Business Bridge, BOT, and Bot, which provide a more nuanced approach to strategic decision-making that can support that balance. Adding these strategies as part of a Build, Borrow, Buy framework (Capron & Mitchell, 2012) offers additional approaches to resource capabilities and acquisition for growth, enabling firms to better steer through the complexities of a global business environment.

References

Brzychcy, E. (2025). How to bridge strategy and execution. Forbes. Retrieved from https://www.forbes.com/sites/forbescoachescouncil/2025/02/12/how-to-bridge-strategy-and-execution/

Bullard, L. (2024). Building a business bridge: Connecting success in 2024. Business Idea US. Retrieved from https://businessideaus.com/building-a-business-bridge-connecting-success-in-2024/

Capron, L., & Mitchell, W. (2012). Build, borrow, or buy: Solving the growth dilemma. Harvard Business Review Press.

Deng, A. (2024). To buy, build, borrow or bridge? Future Leadership. Retrieved from https://www.linkedin.com/pulse/buy-build-borrow-bridge-alexandra-deng-mahri--1wllc/

Hayes, A. (2025). Build-Operate-Transfer Contract: Definition, Risks, and Framework. Investopedia. Retrieved from https://www.investopedia.com/terms/b/botcontract.asp

Lara Machado, P., van de Ven, M., Aysolmaz, B., Athanasopoulou, A., Ozkan, B. & Turetken, O. (2023). Methods that bridge business models and business processes: a literature synthesis. Business Process Management Journal, Vol. 29 No. 8, pp. 48–74. https://doi.org/10.1108/BPMJ-08-2022-0396

Marr, B. (2023). The 15 biggest risks of artificial intelligence. Forbes. Retrieved from https://www.forbes.com/sites/bernardmarr/2023/06/02/the-15-biggest-risks-of-artificial-intelligence/

OpenAI., (2023). ChatGPT. OpenAI. Retrieved from https://openai.com/index/chatgpt/

Pathak, H. (2024, June 6). Build-Operate-Transfer (BOT) model: Weighing the pros and cons for your business. Inorg. Retrieved from https://www.inorg.com/blog/build-operate-transfer-bot-model-weighing-the-pros-and-cons-for-your-business

Quang, D. (2024). The Detailed Guide Of Build-Operate-Transfer (BOT) Model. Relia Software Blogs. Retrieved from https://reliasoftware.com/blog/build-operate-transfer-model

Rajan, S. (2025). Build-Operate-Transfer (BOT): A Comprehensive Guide for Rapid Business Growth. Torry Harris Business Solutions. Retrieved from https://www.torryharris.com/knowledge-zone/build-operate-transfer-bot

Tews, S., (2023). Build, bridge, buy, borrow your talent development strategy. Hausmann Group. Retrieved from https://www.myhaus.com/blog/build-bridge-buy-borrow-your-talent-development-strategy

About the Author:

Michael Quartermain, C.Mgr., is a professor at the School of Business at Conestoga College Institute of Advanced Learning and Technology, where he has been teaching for over five years in the areas of business management and sustainability. Michael spent over thirty-five years in business and consulting in general management, procurement, and strategic sourcing.

He holds a Bachelor of Commerce degree from York University, a Master of Law specializing in dispute resolution from Osgoode Hall Law School and a Master of Peace and Conflict Studies from the University of Waterloo. Michael is working on a Professional Master of Education at Queen’s University.

He holds professional designations as Lean Six Sigma Green Belt (McGill University), Certified Associate Project Manager (Project Management Institute), Qualified Mediator (Alternative Dispute Resolution Institute of Ontario),  Chartered Manager (Canadian Institute of Management), Certified Business Management Educator (The Chartered Association of Business Schools), Certified International Negotiator (Chartered Institute of Professional Certifications) and Certified Supply Chain Leader/Certified Supply Chain Management Professional (National Institute of Supply Chain Leaders). In addition to these certifications, Michael has several other certificates that are part of his ongoing professional development.