A Cross-level Empirical Research On Factors And Function Pathes Of Business Model Innovation

Business model innovation has become one of the hot issues for researching both at home and abroad. However, current research on business model and business model innovation basically attributes to objective research, which focuses on the origin, definition and structure of a business model; the development and definition of business model innovation; the typology of business model innovation; the process of business model innovation; the motivation and impact of business model innovation, and etc. However, there is a lack of in-depth analysis on the concept of business model innovation and insufficient analysis on the formation mechanism of new business models among these studies. In particular, there is a short of empirical research on subjectives of business model innovation for petrochemical enterprises. Therefore, in addition to theoretical development of business model innovation, this paper does not focus on objects such as the concept, typology, element(such as specific value creation approach, value proposition, how to deliver and capture value, etc.), while emphasizes on the discussion of subjective factors of business model innovation by conducting an empirical study on exploring the factors promoting and hindering business model innovation based on the samples from domestic petrochemical enterprises.Based on the theory of innovation, business model innovation is divided into two parts or stages which, including business model creativity and business model application, and then this paper compares their differences and similarities. Then this paper uses the Austria school economist Hayek’s knowledge dispersion theory, Simon’s bounded rationality theory, and Smith’s hypothesis of economic man to discuss two formation mechanisms of new business models which is the final result of business model innovation, i.e. spontaneous generation view and rational creation view. According to the view that business model is a concrete manifestation of strategy, this paper analyses the inherent assumptions’ shortcomings of strategy formation process of some strategic management schools, such as planning school, designing school, and entrepreneurial school. Then this paper points out the inherent assumptions’ rationality of learning school, and the learning school’s view also suggests the rationality of spontaneous generation view. Based on the extension of the concept of business model innovation, spontaneous generation view of new business model, and the classification of business model innovation, this paper points out that new business model is the emergence of business model operation of employees’ spontaneous improvement constantly. According this anaylsis, this paper concludes that the real motivation source of business model innovation is coming from the middle level and first-line managers.Due to the lack of literature specialized on the impact factor of business model innovation this study takes a content analysis method to explore the factors affecting business model innovation. Through a questionnaire survey, 839 words are obtained and grouped into 45 key words, divided into employee-level and enterprise-level. Combining views from theoretical field, a three-level hierarchical theoretical framework is developed based on the external environment, enterprise-level and employee-level factors affecting business model innovation.This study takes domestic petrochemical enterprises as an example, selects absorptive capacity and employees’ entrepreneurship from the employee level and corporate culture from enterprise level as three factors influencing business model. Hierarchical linear model is used to discuss the causal relationships. First, research hypotheses were formed based on related theories from social psychology and management science. Second, a questionnaire was developed on business model innovation, employees’ absorptive capacity, employees’ entrepreneurship, and corporate culture, and explorative factor analysis was conducted to analyze the structure of the questionnaire, and structural equation model was used to test the validity of the questionnaire. Third, hierarchical linear model wais used to analyze the impact of employees’ absorptive capacity, employees’ entrepreneurship, and corporate culture on business model innovation and their causal relationships.Data analysis showed that: Business Model Innovation is divided into business model creativity and business model application is proper; Employee absorptive capacity is divided into identification and sharing, understanding and integration, and individual investment; Identification and sharing have a significant positive effect on business model creativity and application; Understanding and integration is found to have a significant positive impact on business model application. Employee entrepreneurship is divided into innovation spirit, seeking knowledge spirit, cooperation spirit and responsibility spirit; innovation spirit hsa a significant positive impact on business model creativity and application; seeking knowledge spirit has a significant positive influence on business model creativity; cooperation spirit has a significant positive impact on business model creativity. Corporate culture is divided into innovative culture and bureaucratic culture; innovative culture significantly has a direct positive impact on business model application; Bureaucratic culture has a significant negative role in influencing business model creativity; innovative culture has a moderating effect on the relationship between learning and business model creativity, and bureaucratic culture has a moderating effect on responsibility and business model creativity relationship.