Business Model Innovation in the Trading Card Grading Industry: Cross-National Insights from Pokémon Trading Card Game and Non-fungible Tokens

This study examines how firms in the Pokémon Trading Card Game (PTCG) grading industry adapt their business models in response to digital disruption. We employ a qualitative multiple-case design, investigating three leading grading companies – PSA (United States), CCIC (China), and SQC (Thailand) – through 30 in-depth interviews and supplemental document analysis. The findings reveal divergent strategies shaped by both dynamic capabilities and institutional contexts. PSA leverages scale and AI technology to enhance efficiency, CCIC focuses on legitimacy and incremental improvements under regulatory constraints, and SQC pursues exploratory digital initiatives (e.g., NFT-linked trials) to co- create value with its community. These patterns highlight the ambidexterity required for business model innovation in a digitizing niche service sector. The study contributes to business model innovation and digital transformation literature by demonstrating how national institutions and customer engagement influence innovation paths. Practical implications include lessons for balancing core business sustainability with transformative innovation in different regulatory environments.