The Business Model of Chinese Manufacturing Born Global Companies

Abstract: Regarding that the business model is widely used in e-business, we consider that every business should have its own business model which helps a company to evaluate the business and also create a dynamic business. In addition, the emphasis of this research is combined with another element – Born Global, which caters the globalization trend in recent decades. In fact, there are more and more Born Globals setting up in emerging market countries such as China, especially most of them are involved in manufacturing industry. In this case, the focus of this research is on the business model of Chinese manufacturing Born Globals. We investigate deeply through the interaction of each component of the business model to see how Chinese manufacturing Born Globals design and manage their business to achieve successful internationalization within China’s particular political and social background.   After reviewing abundant literatures about business model components, we conclude them into 11 components categories. Furthermore, we combine the critical success factors of Chinese Born Globals with the business model components we summarized together to find what elements may more important to Chinese Born Globals’ internationalization. Based on these, we build a new framework which includes all the 11 elements, 3 interfaces, 2 frames and 1 external environment factor to investigate how these elements interact with each, what is the logic behind the business model generally and how the external environment influence the business model. At the end, we give out a probable evaluation method for the business model.   Qualitative case study is adopted in this paper. We choose a Chinese manufacturing Born Global as case company. Both secondary and primary data are used in this research. We gather primary data through questionnaire survey and 4 times interviews. Due to the wide range of our topic and large size of our case company, we use a lot secondary data to get more comprehensive understandings of the case company.   Through the analysis of case company, we get the main picture of how Chinese manufacturing Born Glonals’ business model look like. In the conclusion, firstly we give out a brief description of what is Chinese manufacturing Born Globals’ business model. Moreover, we find the human resources within the business model cause Chinese Born Globals’ production ability, innovation ability and finally contribute to its important OEM production. As a result, we actually use the Chinese manufacturing Born Globals’ business model to explain their rapid international success. Besides that, we also get some new findings of Chinese manufacturing Born Globals from the aspects of internationalization motivation, process and success factors. According to the evaluation of Chinese manufacturing Born Globals’ business model, we find some crucial problems for example the lost brand value, the low profit and poor sustainability. These conclusions actually provide some managerial suggestions for Chinese manufacturing companies who aim to go abroad or reform their business models.