Business development in Engineering, Procurement, and Construction (EPC) project-based firms in the oil and gas industry is essential for achieving long-term competitive advantage. It requires a strategic shift from simply executing projects to developing firm-level capabilities. This research seeks to address the theoretical gap in understanding the mechanisms of this transformation in turbulent emerging markets. Specifically, it designs a comprehensive process model for business development in Iran’s downstream industries. Utilizing an interpretive paradigm, data were collected through in-depth semi-structured interviews with 17 experts from both industry and academia. The data were analyzed using reflexive thematic analysis at a latent level until theoretical saturation was reached.
The analysis revealed a comprehensive process model that includes antecedents, the core execution of Engineering, Procurement, and Construction, and outcomes. Contextual factors, such as sanctions and institutional barriers, shape the model's operational environment. The findings show that institutional resilience plays a crucial mediating role between dynamic capabilities and business development outcomes in sanctioned economies. Additionally, sustainability emerges as a legitimizing factor to address institutional voids. This model demonstrates that overcoming the project-based trap requires leveraging dynamic capabilities for business model innovation and that institutional resilience is essential for integration into the global value chain.