Research On Experimental Innovation-Oriented Dynamic Evaluation For Business Model’s Key Attributes

BM (BM for short) innovation has been incorporated into the national innovation system of our country, which has become an important strategy to promote economic restructuring and elevate national competitiveness. The same idea or technology will produce two different economic results if it enters the market via two different BMs. Any enterprises have at least one BM. Good models benefit value creating and financing, while bad ones result in enterprises unsustainable management. So enterprises need to keep experimenting on new BM to commercialize new ideas and new technologies. Thus, BM analysis helps to understand why some enterprises lack competitive advantage and why some are very successful.The research focuses on how to dynamically assess a BM based on experimental innovation and according to its key attributes. So far, the research of this problem is far behind the need of practice. The problem was put forward due to the following three aspects:① the generation and evolution of a BM is essentially an iterative process of experimental innovation, full of risk and uncertainty; ②xperimental innovation of a BM needs to deal with various internal and external obstacles and risks; whether the obstacles and risks can be overcome or not needs to explore the key attributes of BM; ③ reasonable dynamic evaluation of the BM can clarify the real situation of the realization of BM’s function and raise the likelihood BM innovation will succeed.Thus, the paper will research on the following: ① Construction of a two-stage decision-making theory of BM. Based on value theory, deduce structural components of BM, and mechanism of BM for market performance, and then describe the decision phase theory of BM. ② Constructing the theory of BM generation and evolution and experimental innovation. Clearly put forward the phrases that how a new BM generate and evaluate, and describe the characteristics, risks and barriers of each phrase, reveal that experimental innovation runs through the whole process of BM generation and evolution. ③ Key attributes and evaluation indicators of BM. Identify general attributes of a high quality BM and key attributes of each component, and demonstrate causal relationship between these attributes and enterprise performance. ④ Dynamic evaluation method, process and results diagnostic strategy of BM. BM describes key elements of connection characteristics of value creation activities between action bodies in the value chain. With the advance of BM innovation experiment process, the key elements of BM present the dynamic change, which will result in quality of the BM in different time changing. Therefore, it is crucial for assessing BM accurately to identify the change of BM’s attributes. Complete assessment of BM is a systematic, structured and complex process.The main contribution is:① proposing a two-stage decision-making framework of the BM. This decision-making framework integrates four elements of BM decision process, that is, strategic causes, strategic planning, BM and model implementation, integrated into a diagram. Strategic causes are some prerequisites influencing strategic planning, including environmental background, strategic targets, initial resources and ability etc. Strategic planning clarifies the principle plans that make enterprises carry out the overall business objectives in a competitive and dynamic business environment. BM is how to implement strategic plan into practice and create and obtain logic and blueprint of economic value. Model implementation is actual executing activities and process of BM, based on a specific business process and organization structure. If a right BM cannot implement better, it will not bring good market performance. A two-stage decision-making framework of the BM is available for BM designing, selecting and model gaming with competitors. This framework helps enterprises to choose the right BM to obtain sustainable competitive advantage.②Propose a four-stage theory of BM generation and evolution. Any BM is the specific logic with which enterprises do business in special situation. Although as model business logic has general applicability, if you want to succeed when transplanted and copied in a new situation, must get some subtle adjustment and correction. As a kind of "public resources", specific BM is not totally completely transparent. Maybe there are some unknown "inclosed" fields and components, and learning from existing BM certainly needs experimental innovation. Experimental innovation of BM lies in the whole process of BM generation and evolution. It must be based on this process to analyze the experimental innovation of BM. Therefore, a four-stage lifecycle model of BM is established. The internal logic of the four stages is:loop iteration of blueprint model, real model, harmonic model and new blueprint model; the mission of each stage is:to come up with a suitable BM, to work out the BM, to make the BM bigger and stronger and to realize enterprise’s sustainable living.③Identifying key attributes of BM. Using the fuzzy-set qualitative comparative analysis (FsQCA method) for the first time to determine the causal relationship between high market performance and the portfolio of key attributes and explore the forms of enterprises of different life span to obtain the key attributes portfolio of high market performance. The meaning of solving this problem lies in:firstly, it may help to explain why the BMs whose structure look entirely different can get business success; secondly, clear the direction for BM innovation, and pursue the model that is more effective, more practical, and has more competitive advantages than existing one; thirdly, identify key attributes of BM, and classify BM according to the combination of key attributes, which is a breakthrough try in research on BM; lastly, the most important is making a bridge connection between key attributes of BM and market performance of key enterprises, that is, determine how to combine the key attributes of BM and as a sufficient condition, can ensure high market performance; or what kind of combination is the requirement for the success of key enterprises.④ Build dynamic evaluation theory of BM. That seven key attributes of BM indeed are the important antecedents for enterprise to get high market performance is verified by FsQCA 2.0 software, and the paths to get this (that is combination of key attributes) are differentiated for these enterprises at different BM stages, which intuitively reveal the rules between BM and key enterprise getting high market performance. Therefore, several identified paths for BM success can be the basis of a dynamic BM. Furthermore, provide an evaluation standard of BM, including five grades: extremely possible, very possible, ordinary possible, narrowly possible and none possible, and evaluate the BM of sample enterprise. Finally, analyze the assessment emphasis of BM’s different development stages.