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Business modeling for entrepreneurial firms: four cases in China

Liu, Yang LU and Wei, Jiang (2013) In Chinese Management Studies 7(3). p.344-359
Abstract
Purpose - Business model innovation is a new way for Chinese firms to compete in the global economy. Due to the unique context in China, the authors aim to clarify what is a business model, how to design a business model, and how different designs affect firms' competitive advantages in China. Design/methodology/approach - Literature review and multiple case studies (i.e. Dinghan Technology, Flush Network, Aier Eye, and Huayi Brothers) are used. Findings - After defining business model, the authors integrate the activity system approach and the configurational approach to construct a unique framework for business model design, and four different models for Chinese firms emerge, namely, focused cost innovation, integrated cost innovation,... (More)
Purpose - Business model innovation is a new way for Chinese firms to compete in the global economy. Due to the unique context in China, the authors aim to clarify what is a business model, how to design a business model, and how different designs affect firms' competitive advantages in China. Design/methodology/approach - Literature review and multiple case studies (i.e. Dinghan Technology, Flush Network, Aier Eye, and Huayi Brothers) are used. Findings - After defining business model, the authors integrate the activity system approach and the configurational approach to construct a unique framework for business model design, and four different models for Chinese firms emerge, namely, focused cost innovation, integrated cost innovation, focused value innovation, and integrated value innovation. Then the authors explore the main mechanisms through which different designs could help firms achieve competitive advantages. Practical implications - Business model matters for Chinese firms. The authors' results provide a roadmap for Chinese entrepreneurs to design effective and efficient business models. Future success of Chinese new firms depends on the continuous improvement of their business model. Originality/value - The authors' results contribute to a better understanding of business model, particularly in the context of China. The authors also contribute to the entrepreneurship literature by providing insights of how to configure entrepreneurial activity system to gain competitive advantages. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Business model, Entrepreneurship, Value innovation, Cost innovation, Competitive advantage, China
in
Chinese Management Studies
volume
7
issue
3
pages
344 - 359
publisher
Emerald Group Publishing Limited
external identifiers
  • wos:000324155300003
  • scopus:84883059044
ISSN
1750-6158
DOI
10.1108/CMS-Mar-2012-0052
language
English
LU publication?
yes
id
29aca8bc-f24d-4ebc-87d9-f9d4588795a1 (old id 4112866)
date added to LUP
2013-10-28 10:35:23
date last changed
2019-07-30 01:39:33
@article{29aca8bc-f24d-4ebc-87d9-f9d4588795a1,
  abstract     = {Purpose - Business model innovation is a new way for Chinese firms to compete in the global economy. Due to the unique context in China, the authors aim to clarify what is a business model, how to design a business model, and how different designs affect firms' competitive advantages in China. Design/methodology/approach - Literature review and multiple case studies (i.e. Dinghan Technology, Flush Network, Aier Eye, and Huayi Brothers) are used. Findings - After defining business model, the authors integrate the activity system approach and the configurational approach to construct a unique framework for business model design, and four different models for Chinese firms emerge, namely, focused cost innovation, integrated cost innovation, focused value innovation, and integrated value innovation. Then the authors explore the main mechanisms through which different designs could help firms achieve competitive advantages. Practical implications - Business model matters for Chinese firms. The authors' results provide a roadmap for Chinese entrepreneurs to design effective and efficient business models. Future success of Chinese new firms depends on the continuous improvement of their business model. Originality/value - The authors' results contribute to a better understanding of business model, particularly in the context of China. The authors also contribute to the entrepreneurship literature by providing insights of how to configure entrepreneurial activity system to gain competitive advantages.},
  author       = {Liu, Yang and Wei, Jiang},
  issn         = {1750-6158},
  keyword      = {Business model,Entrepreneurship,Value innovation,Cost innovation,Competitive advantage,China},
  language     = {eng},
  number       = {3},
  pages        = {344--359},
  publisher    = {Emerald Group Publishing Limited},
  series       = {Chinese Management Studies},
  title        = {Business modeling for entrepreneurial firms: four cases in China},
  url          = {http://dx.doi.org/10.1108/CMS-Mar-2012-0052},
  volume       = {7},
  year         = {2013},
}