Why and how do successful digital Chinese enterprises innovate their business models?

What is it about?

This research explores what initiated business model innovation in four successful Chinese ICT enterprises and the process they went through to adapt and innovate their business models. A case study approach is adopted to research and review how the enterprises developed and innovated their value creation, value networks, value delivery, and value capture.

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Why is it important?

Understanding why and how these enterprises successfully undertake business model innovation can help to provide direction for other similar enterprises to thrive in the future. The research found three main reasons why the enterprises in the sample initiated in business model innovation. These were: constant and rapid product iteration together with an emergent strategy leading to business model innovations to take full advantage of the firms’ competitive advantages; a reaction to threats and environmental changes; and an opportunistic behaviour to extend the business model into new markets. In line with other research in the Chinese context, it was found that networks supported the business model innovation process and the enterprises used their networks with their customers, investors and other collaborators to shape their business model innovation.

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