The Influence Of Competitive Environment,Firm Strategy And Business Model On Firm Value

With the rapid development of society,China’s manufacturing industry is undergoing a transformation through the modernization of business models and industry,and the choice of its business model is closely linked to the sustainable development of enterprises.Business model is a very important concept derived from strategy studies,and the relationship between it and corporate strategy has long been the focus of academic attention.The way in which the two aspects fit together depends on the competitive environment in which the firm operates,which has a major impact on the development of the business model and the choice of the firm’s strategy.The competitive environment has an important influence on the development of the business model and the choice of the firm’s strategy.It is therefore important to focus on how to cope with the current changing competitive environment and how to achieve good synergies between business models and corporate strategy.Accordingly,the objective of this paper is to analyse the competitive environment,the business strategy and the business model in order to explore how to align the business model and the business strategy in order to maximise the value of the firm in an uncertain competitive environment.Based on the above research objectives,this paper first classifies business models into three dimensions: customer value proposition,business system and profitability model,and business strategies into two dimensions: differentiation strategy and cost leadership strategy,and examines the impact of these six variables on firm value by combining the competitive environment of firms using group-based reasoning.Second,140 listed manufacturing enterprises from 2020 to 2020 were selected as the object of the study.The impact of the relationship between corporate strategy and business model on firm value was investigated from a historical perspective,taking into account three dimensions: competitive environment,corporate strategy and business model,using qualitative and quantitative analysis(fs QCA),combining qualitative and quantitative analysis,and examining the impact of the relationship between corporate strategy and business model of Chinese manufacturing enterprises under the influence of competitive environment,and arriving at the two paths to achieve high firm value.Finally,an overall sample is taken from three aspects:firm size,firm life cycle and ownership,and heterogeneity analysis is conducted to analyze and evaluate the ways of different types of enterprises to achieve high firm value.This study found that:(1)A fuzzy set qualitative comparison analysis of the total sample resulted in two groups of states that enable manufacturing firms to achieve high value,which indicates that there are different ways of matching business models with corporate strategies in different competitive environments,and both can achieve high corporate value;(2)In a competitive environment with high external competition,it is advisable for enterprises to adopt a differentiation strategy,while effectively combining it with the customer value proposition and business activity system elements to achieve high enterprise value;(3)In a competitive environment with low external competition,it is advisable for enterprises to adopt a cost leadership strategy,while effectively matching it with business activity system elements and profitability model elements to enhance enterprise value;(4)Based on the heterogeneity analysis among enterprises of different nature,different high-value path groupings are derived a heterogeneity analysis based on the nature of the companies,which provides differentiated recommendations on how manufacturing companies can make strategic choices and design their business models in different competitive environments.The results of this paper emphasise that the rational match between business models and corporate strategies is influenced by the competitive environment in which a company operates,and help to enrich the literature on corporate business model design and strategy formulation for the management of manufacturing companies.