Leveraging six values for company performance: Adaptation of sustainable business model innovation strategies in Chinese electric vehicle brand enterprises

Raja Nazim Raja Abdullah

Abstract

Business model innovation is crucial for enhancing company performance. This study aims to investigate the relationship between the six dimensions of sustainable business model innovation and company performance among Chinese electric vehicle brands. A structural equation model is constructed based on a comprehensive literature review and hypothesis development. Using PLS-SEM, this study empirically analyzes questionnaire data collected from the top 12 electric vehicle brands in China to explore the relationship between these six core dimensions and company performance. The results indicate that innovation in “value proposition to customers”, value creation, value delivery, and “value of residual” have a significantly positive impact on the performance of Chinese electric vehicle brands. However, value capture innovation and “value of after-sales service” innovation were not found to be statistically significant. This paper provides an in-depth analysis of the mechanism through which sustainable business model innovation impacts company performance, enriching the theoretical foundation of academic research in this field and broadening its practical applications in management. © 2024 by the authors.

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