IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i7p5738-d1106923.html

Business Model Innovation of Exponential Organizations: The Case of Xiaomi

Author

Listed:
  • Xuming Zhang

    (School of Management, Guangdong University of Science and Technology, Dongguan 523083, China)

  • Dongphil Chun

    (Graduate School of Management of Technology, Pukyong National University, Busan 48547, Republic of Korea)

Abstract

The latest trend in today’s organizational development is to become exponential organizations. As a new organizational paradigm for the Internet society and sharing economy era, it is a more flexible, streamlined, and entrepreneurial organization that efficiently integrates global resources and achieves rapid growth. While existing literature has explored how exponential organization success is inextricably linked to its business model, little attention has been paid to and summarized regarding each stage of the exponential organizations’ innovation in the context of the business operation cycle. Meanwhile, the limitations of previous studies were not providing sufficient explanation or strategies for Chinese manufacturing organizations’ exponential transformation to make them sustainable, and not upgrading to relate to organizations in general rather than focusing on a representative Chinese organization. This work aims to deeply analyze a single case of Xiaomi, the representative of exponential organizations, through a case study, summarizing the business model innovation strategies of exponential organizations from four perspectives—value proposition, value creation, value delivery, and value capture—and 11 elements of exponential organizations. The findings are as follows: (1) Making full use of Internet digital technology and effectively integrating and utilizing social resources can help exponential organizations to build an innovation ecology and (2) The 11 attributes of exponential organizations and the corresponding requirements provide more options and space for business model innovation. As a result, these findings add to the current discourse regarding exponential transformation and upgrading, with the expectation of providing theoretical references for the Chinese manufacturing organizations’ exponential transformation and upgrading.

Suggested Citation

  • Xuming Zhang & Dongphil Chun, 2023. "Business Model Innovation of Exponential Organizations: The Case of Xiaomi," Sustainability, MDPI, vol. 15(7), pages 1-17, March.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:7:p:5738-:d:1106923
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/7/5738/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/7/5738/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Benedict G. C. Dellaert, 2019. "The consumer production journey: marketing to consumers as co-producers in the sharing economy," Journal of the Academy of Marketing Science, Springer, vol. 47(2), pages 238-254, March.
    2. Jaime Ortiz & Hao Ren & Kei Li & An Zhang, 2019. "Construction of Open Innovation Ecology on the Internet: A Case Study of Xiaomi (China) Using Institutional Logic," Sustainability, MDPI, vol. 11(11), pages 1-17, June.
    3. Mehdi Amini & Carol C. Bienstock & John A. Narcum, 2018. "Status of corporate sustainability: a content analysis of Fortune 500 companies," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1450-1461, December.
    4. Shafer, Scott M. & Smith, H. Jeff & Linder, Jane C., 2005. "The power of business models," Business Horizons, Elsevier, vol. 48(3), pages 199-207.
    5. Grunwald, Herbert J. & Fortuin, Leonard, 1992. "Many steps towards zero inventory," European Journal of Operational Research, Elsevier, vol. 59(3), pages 359-369, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xing lei & Qasim Hamamurad & Nor Hidayati Zakaria, 2025. "Assessing business model innovation in high-tech startups with Biblioshiny," Future Business Journal, Springer, vol. 11(1), pages 1-21, December.
    2. Rival Valcin & Tomohiro Uchiyama & Rika Terano & Katsumori Hatanaka & Yasuo Ohe & Nina Shimoguchi, 2024. "Ex-ante evaluation of a cross-sectorial business model for risk management in new product development: the case of Haitian farming," Review of Agricultural, Food and Environmental Studies, Springer, vol. 105(4), pages 419-441, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ionica Oncioiu & Sorinel Căpuşneanu & Dan Ioan Topor & Ana Maria Ifrim & Ramona Camelia Silvestru & Monica Ioana Toader, 2021. "Improving Business Processes in a Construction Project and Increasing Performance by Using Target Costing," SAGE Open, , vol. 11(1), pages 21582440219, February.
    2. Massa, Silvia & Testa, Stefania, 2011. "Beyond the conventional-specialty dichotomy in food retailing business models: An Italian case study," Journal of Retailing and Consumer Services, Elsevier, vol. 18(5), pages 476-482.
    3. Cinzia Battistella & Gianluca Murgia & Fabio Nonino, 2021. "Free-driven web-based business models," Electronic Commerce Research, Springer, vol. 21(2), pages 445-486, June.
    4. Patrick Spieth & Svenja Meissner Née Schuchert, 2018. "Business Model Innovation Alliances: How To Open Business Models For Cooperation," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(04), pages 1-26, May.
    5. Catia Milena Lopes & Annibal José Scavarda & Mauricio Nunes Macedo de Carvalho & André Luis Korzenowski, 2018. "The Business Model and Innovation Analyses: The Sustainable Transition Obstacles and Drivers for the Hospital Supply Chains," Resources, MDPI, vol. 8(1), pages 1-17, December.
    6. Tim Benijts, 2014. "A Business Sustainability Model for Government Corporations. A Belgian Case Study," Business Strategy and the Environment, Wiley Blackwell, vol. 23(3), pages 204-216, March.
    7. Stine Labes & Nicolai Hanner & Ruediger Zarnekow, 2017. "Successful Business Model Types of Cloud Providers," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 59(4), pages 223-233, August.
    8. Ben Roelens & Geert Poels, 2015. "The Development and Experimental Evaluation of a Focused Business Model Representation," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 57(1), pages 61-71, February.
    9. Alexis Laszczuk & Lionel Garreau & Bernard de Montmorillon, 2017. "Understanding emergence in business model development: how companies interact with stakeholders to deal with environmental ambiguity," Post-Print hal-01787276, HAL.
    10. Manuel Sánchez-Pérez & Nuria Rueda-López & María Belén Marín-Carrillo & Eduardo Terán-Yépez, 2021. "Theoretical dilemmas, conceptual review and perspectives disclosure of the sharing economy: a qualitative analysis," Review of Managerial Science, Springer, vol. 15(7), pages 1849-1883, October.
    11. Wenyao Zhang & Tugrul Daim & Qingpu Zhang, 2019. "Exploring the Multi-Phase Driven Process for Disruptive Business Model Innovation of E-Business Microcredit: a Multiple Case Study from China," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(2), pages 590-617, June.
    12. Esther Calderon-Monge & Domingo Ribeiro-Soriano, 2024. "The role of digitalization in business and management: a systematic literature review," Review of Managerial Science, Springer, vol. 18(2), pages 449-491, February.
    13. Elizabeth Ekren & Maria E. Tomasso & Melinda M. Villagran, 2024. "Resilience as a Concept for Convergence Across Health, Systems, and Well-Being: An AI-Augmented Mapping of 50 Years of Resilience Research," Sustainability, MDPI, vol. 16(23), pages 1-32, November.
    14. E. Moreva L. & Е. Морева Л., 2017. "Бизнес-Модель И Ее Роль В Разработке Инновационной Политики (Анализ Зарубежных Концепций) // The Business Model And Its Role In The Development Of The Innovation Policy (Analysis Of Foreign Concepts)," Финансы: теория и практика/Finance: Theory and Practice // Finance: Theory and Practice, ФГОБУВО Финансовый университет при Правительстве Российской Федерации // Financial University under The Government of Russian Federation, vol. 21(4), pages 126-137.
    15. Sylwia Lorenc & Tomasz Leśniak & Arkadiusz Kustra & Maria Sierpińska, 2023. "Evolution of Business Models of Mining and Energy Sector Companies according to Current Market Trends," Energies, MDPI, vol. 16(13), pages 1-21, July.
    16. Alexander Grünewald & Tan Gürpinar & Carina Culotta & Alicia Guderian, 2024. "Archetypes of blockchain-based business models in enterprise networks," Information Systems and e-Business Management, Springer, vol. 22(4), pages 633-665, December.
    17. Hung, Hsiu-Yu & Kumar, Ajay & Kumar, V. & Lin, Chih-Cheng & Tan, Kim Hua, 2025. "Exploring player cocreation dynamics on the gaming platform: Interplay of goal fulfillments, orchestration actions, and platform affordances," International Journal of Research in Marketing, Elsevier, vol. 42(4), pages 1125-1142.
    18. Luigi Fusco Girard & Marilena Vecco, 2021. "The “Intrinsic Value” of Cultural Heritage as Driver for Circular Human-Centered Adaptive Reuse," Sustainability, MDPI, vol. 13(6), pages 1-28, March.
    19. Timur Kogabayev & Anne Põder & Henrik Barth & Rando Värnik, 2023. "Prospects for Wood Pellet Production in Kazakhstan: A Case Study on Business Model Adjustment," Energies, MDPI, vol. 16(15), pages 1-20, August.
    20. Lorenzo Simoni & Laura Bini & Francesco Giunta, 2019. "The effects of business model regulation on the value relevance of traditional performance measures. Some evidence from UK companies," FINANCIAL REPORTING, FrancoAngeli Editore, vol. 2019(1), pages 83-111.

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:7:p:5738-:d:1106923. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.