The Research On Business Model Innovation Of Internet Companies Affects Business Performance

In the 1990 s, with the popularity of internet technology in the world, internet companies have emerged in China around the year 2000, including three major portals like Yahoo, Sina, Sohu and other companies like Tencent. Internet companies continue to create new business models, which led to a wide range of research with academic. After finishing and summarizing extensive literature in comprehensive, this paper found that the existing research on business models with internet companies based on the business model itself, such as definition, constituent elements, innovation path, there are few researches related to study the business model innovation affect business performance, which makes it impossible to pass effective and innovative way to improve business performance of Internet companies, and the improving of business performance have a direct effect in promoting the growth of enterprises. Therefore, in order to compensate the lack of such studies in the past, the academic requires research content in this field in depth.This paper regard the internet companies as a research objective was to investigate the relationship between the business model innovation and business performance, and contacting specific case to provide specific and feasible guidance for the reality of companies. Firstly, by reading research results, this paper reorganize business model, value creation, business performance evaluation and other related documents in system. Secondly, by using standardized research methods, this paper contact the general characteristics with internet companies, researching relevant theoretical basis of business model innovation with internet companies, specifically including business growth, free mode, network externalities. Again, this paper take typical enterprise as analysis objects, studying the path of business model innovation impact business performance through logical reasoning. Finally, this paper start the empirical analysis regard to business model innovation with internet companies impact business performance, exploring the advantages of economic value added when measure business performance.The research based on business model innovation path with internet companies, drawing the following important conclusions: First, internet companies ubiquitous features like free mode and network externalities, has important significance in guiding business model innovation. Second, business model innovation is based on customer value innovation, which performance of innovation, customer value transition, planning enterprise value acquisition mode in comprehensive. Specifically, firstly, achieving customer value innovation by looking for a new long-tailed; secondly, creating a network of value creation system for new customer; again, obtaining business value with network effects and the free model oriented; finally, the obtainment of enterprise value promote the improvement of business performance, thus promoting business growth. Third, financial and non-financial indicators have advantages and disadvantages in measuring business performance, we need comprehensive consideration from the point of view of quantitative and qualitative, the economic value added has advantage from this aspect.