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Supply Chain-Based Business Model Innovation: The Case of a Cross-Border E-Commerce Company

Author

Listed:
  • Ying Wang

    (School of Economics and Management, Minjiang University, Fuzhou 350108, China)

  • Fu Jia

    (School of Economics and Management, Minjiang University, Fuzhou 350108, China)

  • Tobias Schoenherr

    (Broad College of Business, Michigan State University, East Lansing, MI 48824, USA)

  • Yu Gong

    (Southampton Business School, University of Southampton, Southampton SO17 1BJ, UK)

Abstract

Cross-border e-commerce has gained increasing popularity globally and thrives under the backdrop of the ‘One Belt One Road’ policy of China, which resonates with UN’s sustainable development goals targeting countries in the South. In this study, we investigate Zongteng, which is one of the first cross-border e-commerce companies in China, to assess how supply chain innovation activities can become core to a firm’s business model innovation. Data were collected from Zongteng senior managers, internal company documents, and open online resources. We found that the firm needed changes in its business model, which brought new participants into the business ecosystem and changed their respective positions. We further identified three types of supply chain localisations in cross-border e-commerce for export markets (sales, warehousing, and R&D localisation), which the company’s establishment of overseas warehouses enabled. The three localisation strategies serve as the driving force and the main business model innovation in cross-border e-commerce. This study contributes to the supply chain innovation literature by proposing that overseas warehouses, bonded warehouses, and supply chain finance are capabilities that form part of the business model innovation in cross-border e-commerce.

Suggested Citation

  • Ying Wang & Fu Jia & Tobias Schoenherr & Yu Gong, 2018. "Supply Chain-Based Business Model Innovation: The Case of a Cross-Border E-Commerce Company," Sustainability, MDPI, vol. 10(12), pages 1-23, November.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:12:p:4362-:d:184936
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    5. Mingwei Sun & Katarzyna Grondys & Nazim Hajiyev & Pavel Zhukov, 2021. "Improving the E-Commerce Business Model in a Sustainable Environment," Sustainability, MDPI, vol. 13(22), pages 1-22, November.
    6. Zejian Li & Guangrong Gao & Xiong Xiao & Hongwu Zuo, 2023. "Factors and Formation Path of Cross-Border E-Commerce Logistics Mode Selection," Sustainability, MDPI, vol. 15(4), pages 1-17, February.
    7. Abdul Aziz Khan Niazi & Tehmina Fiaz Qazi & Maryam Aziz & Abdul Basit & Ifra Aziz Khan Niazi, 2023. "Using the Binary Matrices for Modeling the Supply Chain Issues of Virtual Shops: An Evidence from Pakistan," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 9(2), pages 548-564.
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