Abstract
In rural China, successful and sustainable business model design has been viewed as an important strategy to achieve a win–win scenario in which rural poverty can be alleviated and enterprise profit can be improved. Although business model related literature is strong, it lacks a comprehensive framework for appraising business models in rural markets. As a result, entrepreneurs are facing significant challenges in implementing their market development centered business models or resource development centered business models. This study draws on case analysis to present two frameworks for evaluating the two types of business models, respectively. Through open coding and axial coding on eight Chinese cases, we identify the main components for the evaluation frameworks and critical factors within each component. Using the coding results as a lens, we apply a cross-case comparative data analysis to establish the multi-level evaluation systems. Finally, we provide suggestions for entrepreneurs and other stakeholders to better their business model design in China’s rural markets.
Highlights
Markets at the bottom of the pyramid (BOP) hold many potential advantages in terms of their size, rapid growth, less competitive environment, and opportunities Jun, et al [1]
We find that emerging technologies can bridge the separation and lead to the success of rural market development
This study focuses on developing a scientific and reasonable evaluation framework for business models in China’s rural markets
Summary
Markets at the bottom of the pyramid (BOP) hold many potential advantages in terms of their size, rapid growth, less competitive environment, and opportunities Jun, et al [1]. Offering products/services to the poor in these markets and partnering with them to build new resources and capabilities provide an effective way to fight poverty and present profit opportunities for companies [2,3]. Expansion into these markets has been significantly more challenging than originally expected [4]. These issues require organizations to identify the determinants of a successful and sustainable BOP business model, and understand how these determinants help entrepreneurs overcome constraints as well as create mutual value In view of these concerns, there is a strong motivation for researchers to work out these issues and to construct a viable evaluation framework
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
