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Developing Evaluation Frameworks for Business Models in China’s Rural Markets

Author

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  • Xinxiang Zhang

    (School of Information and Safety Engineering, Zhongnan University of Economics and Law, Wuhan 430073, China)

  • Lijun Hu

    (Research Center of Modern Industrial Economy, Zhongnan University of Economics and Law, Wuhan 430073, China)

  • Manjula Salimath

    (Department of Management, University of North Texas, Denton, TX 76203, USA)

  • Ching-Chung Kuo

    (Naveen Jindal School of Management, University of Texas at Dallas, Richardson, TX 75080, USA)

Abstract

In rural China, successful and sustainable business model design has been viewed as an important strategy to achieve a win–win scenario in which rural poverty can be alleviated and enterprise profit can be improved. Although business model related literature is strong, it lacks a comprehensive framework for appraising business models in rural markets. As a result, entrepreneurs are facing significant challenges in implementing their market development centered business models or resource development centered business models. This study draws on case analysis to present two frameworks for evaluating the two types of business models, respectively. Through open coding and axial coding on eight Chinese cases, we identify the main components for the evaluation frameworks and critical factors within each component. Using the coding results as a lens, we apply a cross-case comparative data analysis to establish the multi-level evaluation systems. Finally, we provide suggestions for entrepreneurs and other stakeholders to better their business model design in China’s rural markets.

Suggested Citation

  • Xinxiang Zhang & Lijun Hu & Manjula Salimath & Ching-Chung Kuo, 2018. "Developing Evaluation Frameworks for Business Models in China’s Rural Markets," Sustainability, MDPI, vol. 11(1), pages 1-28, December.
    • Handle: RePEc:gam:jsusta:v:11:y:2018:i:1:p:118-:d:193345
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    1. Simona Stojanova & Nina Cvar & Jurij Verhovnik & Nataša Božić & Jure Trilar & Andrej Kos & Emilija Stojmenova Duh, 2022. "Rural Digital Innovation Hubs as a Paradigm for Sustainable Business Models in Europe’s Rural Areas," Sustainability, MDPI, vol. 14(21), pages 1-20, November.

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