Innovation Generation Mechanism Of Business Model Based On Grounded Theory

Since the end of 1990 s, the business model has attracted more and more attention of scholars, especially related to the transformation of traditional business activities to e-commerce activities. Existing research results show that the concept, composition and classification of the business model has come to an end. In recent years, scholars have turned to the study of business model innovation.Although the business model innovation has decisive effect on the business success, but compared to the product innovation, we know very little about it, it has not developed a universal method of business model innovation in practice. So it is very necessary for carding the literature in business model innovation systematically, clarifying the research logic of the existing, and analyzing and forecasting the future development direction of this topic.In today’s business competition model has become the trend of the times, how to carry out the business model innovation has become a crucial problem, but recognizing the formation mechanism of the business model and the essence of the business model innovation is to solve one of the difficult way. Now, the theoretical methods include grounded theory, have gradually got the attention of mainstream academic management.This paper mainly expanded from six parts. Firstly through reading the literature reviews, clarifying the research status in business model concept and innovation, analyzing the influence of corporate strategy, constraint factors and external resources for innovative business models and providing a priori knowledge for integration of models. Secondly defining the concept of business model innovation, and the application of grounded theory.Thirdly, describes the study design of innovation generation mechanism of business model based on grounded theory, including specific encoding process of open coding, axial coding and selective coding.Fourth, described the model form several aspects,including the objectives of innovation, innovative path and choice, evaluations for innovation. Fifth, described how to apply this model through concrete example of Besun Group. Finally, summarized the conclusions and put forward suggestions for future study.We found that business model innovation is the result of the internal and external power driven. internal parts include the innovation spirit of Executives, the ability to capture market opportunities, and the goal of enterprise operating pressure. Marketization of breakthrough technology, as well as dynamic and discontinuous, radical change of business environment constitute the external motivation 。 At the same time, it may encounter in some resistance.For example, available capacity of technology, capital and executives’ attitude and cognitive towards a new business model, internal resistance of law, social culture and so on. The objective of innovation is important guidelines. In addition, based on the research idea, discussed the innovation way from the static perspective and dynamic perspective. Finally, the business model performance evaluation object is on the content of the profit equation, and the evaluation is done under the evaluation index system in principles of sustainability, profitability and competitive. Compared profit performance and the goal of innovation to get the assessment results of business model innovation in the end.