The Relationship Between Business Model And Company Performance From The Value Creation Perspective

Questions about business model have been the common concern of worldwide entrepreneurs and scholars. How to fabricate an excellent business model and enforce enterprise competitive advantage also become the new topics of strategic management among each industry. Pharmaceuticals industry is an important part of our national economy, which is connected with national welfare and the people’s livelihood. With a rapid pace of development, pharmaceuticals industry has a nice prospect. As the continuous development of science and technology, the trend of globalization and the impact of internet economy, both pharmaceuticals industry and pharmaceutical companies are facing an enormous change. Comparing with developed countries, pharmaceutical companies of our country still have plenty of disadvantages, and will be faced with tough challenges. Business innovation is an effective way to improve company performance, so it has been an urgent demand of enterprises to find a suitable business model. Business model is a new research field, topics which are paid close attention to by scholars are:Definition of business model, components of business model, business model classification, business model innovation, and so on. But too much respective of research makes no consensus in these fundamental problems like components and classification of business model, which will impose restrictions on the applicability and suitability of business model theory. Since it has a great theoretical value, we start from value creation perspective. First, this paper analyzed business model literatures, then modularized business model and put forward the inscape and conceptual framework of business model, which laid the foundation of business model classification. After determining the classification index system, this paper utilized quantized classification index and SPSS software to carry on cluster analysis, then obtained a more objective result. This is also an innovation of classification method.135listed pharmaceutical companies are divided into4business models:Local Brand-building Model, Domestic and Overseas Manufacturing Model, R&D and Marketing Model, Value Network Based Model. Combined with the performance of these listed pharmaceutical companies, factor analysis showed that Value Network Based Model performed best. This paper reflected the business model’s real impact on company performance, expanded the coverage of industry research, and provided theoretical support for business model innovation and performance improvement. It also enriched the strategic management and business model theory and research of relationship between business model and company performance. The results of the paper have an instructional significance to innovate business models of pharmaceutical companies and improve companies’performance.