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Assessing the Impact of Business Model Innovation on Firm Performance: Insights from the China Growth Enterprise Market

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  • Feng Yu
  • Guizhou Wang

Abstract

This article explores the impact of business model innovation (BMI) on firm performance by analyzing 2,970 annual reports of firms in the China Growth Enterprise Market (GEM) from 2012 to 2017. The dependent variable bmi is constructed using crawler technology to reflect the business model innovation of the research sample. Four financial indicators, i.e. gross profit ratio total assets (GPA), earnings per share (EPS), return on total assets (ROA), and return on equity (ROE), are used to represent firm performance. The results suggest that BMI has a positive impact on a firm's performance in China, and the robustness test confirms the findings. This study provides empirical evidence of the impacts of BMI on firm performance in the China GEM and offers managerial implications for governments, firms, and entrepreneurs.

Suggested Citation

  • Feng Yu & Guizhou Wang, 2023. "Assessing the Impact of Business Model Innovation on Firm Performance: Insights from the China Growth Enterprise Market," International Business Research, Canadian Center of Science and Education, vol. 16(4), pages 1-51, April.
    • Handle: RePEc:ibn:ibrjnl:v:16:y:2023:i:4:p:51
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    References listed on IDEAS

    as
    1. Novy-Marx, Robert, 2013. "The other side of value: The gross profitability premium," Journal of Financial Economics, Elsevier, vol. 108(1), pages 1-28.
    2. Muhammad Anwar, 2018. "BUSINESS MODEL INNOVATION AND SMEs PERFORMANCE — DOES COMPETITIVE ADVANTAGE MEDIATE?," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(07), pages 1-31, October.
    3. Robert Novy-Marx, 2010. "The Other Side of Value: Good Growth and the Gross Profitability Premium," NBER Working Papers 15940, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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