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Business innovation in digital startups: A case study of an AI startup

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  • Tang, Xinhui
  • Du, Shujun
  • Deng, Wenwen

Abstract

While digital startups may demonstrate greater success compared to traditional startups, they also face more intricate and dynamic challenges. Lean startup approaches (LSAs) have garnered significant attention due to their effectiveness in fostering business model innovation within the realm of digital entrepreneurship. However, there is limited understanding regarding the application of LSAs by digital startups for effective business model innovation. Through a longitudinal exploratory case study of a Chinese AI startup, our research establishes a framework for the process of business model innovation in digital startups. We elucidate the underlying factors contributing to the limited efficacy of business model innovation in digital start-ups, unveil the internal influence mechanism of LSAs on business model innovation, emphasize its pivotal role in addressing challenges associated with business model innovation and promoting its advancement, and propose relevant propositions.

Suggested Citation

  • Tang, Xinhui & Du, Shujun & Deng, Wenwen, 2025. "Business innovation in digital startups: A case study of an AI startup," International Review of Economics & Finance, Elsevier, vol. 98(C).
    • Handle: RePEc:eee:reveco:v:98:y:2025:i:c:s1059056025000619
    DOI: 10.1016/j.iref.2025.103898
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