Business Model Innovation Mechanism and Value Creation Effect of Data-Driven M&A—Case Study Based on Alibaba

Abstract

AbstractObjectives: In order to systematically reveal the black box between M&As, business model innovation and value creation in the context of big data. Methods: To analyze the vertical evolution process and mechanism of business model innovation of M&As in the context of big data, nested case studies are chosen. Results: For exploratory M&As, Alibaba adopts novelty-oriented business model innovation mechanisms; For exploitative M&As, Alibaba adopts efficiency-oriented business model innovation mechanisms. For the former, Alibaba expands new business in content; in terms of structure, it improves the value chain, innovates key processes, expands the value network, meets customer value propositions, optimizes profit models and customer interfaces, and has a higher degree of integration in governance. For the latter, Alibaba strengthens existing businesses in content; in terms of structure, it optimizes the customer interface, meets customer value propositions, and expands the value network and has a lower degree of integration in governance. Conclusions: Both exploratory and exploitative M&As could achieve value creation through specific business model innovation mechanisms. Exploratory M&As are suitable for novelty-oriented business model innovation, exploitative M&As should carry out efficiency-oriented business model innovation.KeywordsBig dataM&ABusiness model innovationValue creation