Abstract
Internet has revolutionized business model and given birth to sharing economy. A large number of platform enterprises are growing rapidly but with sustainability problems. Platform enterprises have to continue innovating business models in order to obtain sustainable competitive advantages. In complex and varying environment, dynamic capabilities help enterprises overcome core rigidity and promote business model innovation. This article analyzes the elements of business model innovation of platform enterprises and also the relationship between dynamic capabilities and business model innovation. It concludes that the elements of business model innovation are value proposition, product, partnership, and profit model innovation. Dynamic capabilities promote business model innovation which has different guiding effects on the cultivation of dynamic capabilities. An exploratory case study was conducted, using DiDi taxi as an example, and verified the theory model.
Highlights
Internet has transformed trade locations, expanded trade exchange hour, enriched trade item varieties, accelerated trade speed, and reduced intermediaries
Many platform enterprises come into being, and many unicorn enterprises have been developed under the context of sharing economy
There is a lack of research on relationship between dynamic capabilities and business model innovation for platform enterprise. erefore, this paper aims to analyze features of platform enterprise under Internet environment, using DiDi taxi as an example, to study how dynamic capabilities can promote business model innovation to obtain sustainable competitive advantage
Summary
Internet has transformed trade locations, expanded trade exchange hour, enriched trade item varieties, accelerated trade speed, and reduced intermediaries. Internet has revolutionized previous business model and given birth to sharing economy. Many platform enterprises come into being, and many unicorn enterprises have been developed under the context of sharing economy. From consumption to production, sharing economy has played a role in every field and segment market. Hundreds of platform enterprises appear, grow in a fast pace within a very short amount of time, and eventually become competitive and representational enterprise. Advanced development of Internet technology has provided a solid foundation for platform enterprise’s growth but, at the same time, led to brutal competition. Erefore, it can be concluded that the innovation of business model is never once and for all. Under the dynamic and complex environment, enterprises must continue innovating business model to obtain sustainable competitive advantage
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