A Conceptual Framework for Business Model Innovation: The Case of Electric Vehicles in China

EVs (electric vehicle), as sustainable technologies, hold the potential to achieve the sustainability of the transport system and challenge the prevailing business models of internal combustion engines (ICEs). To unlock the dominant logic of ICEs and promote the diffusion of EVs, Business model (BM) innovation is necessary. However, BM innovation for EVs still faces many obstacles. This paper makes contribution theoretically and practically by constructing a “3-7” system and proposing a two-phase conceptual framework for BM innovation of EVs. The case of Shenzhen City, China is studied to illustrate how the “3-7” system and two-phase conceptual framework is applied. Based on the case study, this paper concludes two new barriers that are not highlighted by the previous literature and makes a number of suggestions to help address the issues found in BM innovation.

[1]  Choon Seong Leem,et al.  A Business Model Feasibility Analysis Framework in Ubiquitous Technology Environments , 2007, 2007 International Conference on Convergence Information Technology (ICCIT 2007).

[2]  M. Sosna,et al.  Business Model Innovation through Trial-and-Error Learning , 2010 .

[3]  Suzanna Long,et al.  Barriers to widespread adoption of electric vehicles: An analysis of consumer attitudes and perceptions , 2012 .

[4]  D. Teece.  Business Models, Business Strategy and Innovation , 2010 .

[5]  R. Amit,et al.  Value creation in E‐business , 2001 .

[6]  Alexander Osterwalder,et al.  The business model ontology a proposition in a design science approach , 2004 .

[7]  A. Kokko,et al.  Who does what in China’s new energy vehicle industry? , 2013 .

[8]  Paul Timmers,et al.  Business Models for Electronic Markets , 1998, Electron. Mark..

[9]  H. Tikkanen,et al.  Managerial cognition, action and the business model of the firm , 2005 .

[10]  George M. Giaglis,et al.  Journal of Organizational Change Management Technology innovation-induced business model change: a contingency approach , 2005 .

[11]  M. Sako,et al.  Profiting from business model innovation: Evidence from Pay-As-You-Drive auto insurance , 2013 .

[12]  Lee G. Cooper.  Strategic Marketing Planning for Radically New Products , 2000 .

[13]  J. Thøgersen,et al.  Marketing of electric vehicles , 1999 .

[14]  Xavier Lecocq,et al.  Business Model Evolution: In Search of Dynamic Consistency , 2010 .

[15]  David Dallinger,et al.  New business models for electric cars: A holistic approach , 2011 .

[16]  Vincent Mangematin,et al.  When technological discontinuities and disruptive business models challenge dominant industry logics: insights from the drugs industry , 2012 .

[17]  Jian-Xin You,et al.  Understanding Socio-Technical Barriers to Sustainable Mobility – Insights from Demonstration Program of EVs in China , 2014 .

[18]  B. Ross.  The role of the business model in capturing value from innovation , 2008 .

[19]  H. Chesbrough.  Business Model Innovation: Opportunities and Barriers , 2010 .

[20]  H. Chesbrough,et al.  The Role of the Business Model in Capturing Value from Innovation: Evidence from Xerox Corporation's Technology Spin-Off Companies , 2002 .

[21]  R. Amit,et al.  The Business Model: Recent Developments and Future Research , 2011 .

[22]  Xiaohang Bi,et al.  Low Carbon Development of China’s Yangtze River Delta Region , 2012 .

[23]  S. Hultén,et al.  Escaping lock-in: The case of the electric vehicle☆ , 1996 .

[24]  Introducing Sustainable Development — A Polish Perspective , 2003 .

[25]  M. V. Asselt,et al.  More evolution than revolution: transition management in public policy , 2001 .

[26]  K. Kurani,et al.  Car buyers and fuel economy , 2007 .

[27]  Harry Boer,et al.  Implementing collaborative improvement - top-down, bottom-up or both? , 2007, Int. J. Technol. Manag..

[28]  J. Sterman,et al.  Transition challenges for alternative fuel vehicle and transportation systems , 2006 .

[29]  A. Pawłowski.  How many dimensions does sustainable development have , 2008 .

[30]  R. Freeman.  Strategic Management: A Stakeholder Approach , 2010 .

[31]  C. C. Chan,et al.  The State of the Art of Electric, Hybrid, and Fuel Cell Vehicles , 2007, Proceedings of the IEEE.