Motivations, Mechanisms, and Paths of Business Model Innovation Driven by the Digital Economy

Abstract

The digital economy, underpinned by fundamental digital technologies such as artificial intelligence, blockchain, cloud computing, and big data, facilitates business model innovation, thereby enabling firms to achieve distinctive competitive advantages. While the digital economy creates more development opportunities for businesses, it also subjects them to higher levels of competitive threats. Therefore, business model innovation is both a proactive choice to perceive and exploit external opportunities and a reactive adaptation to identify and mitigate external threats. The digital economy drives business model innovation through digital information, internet platforms, digital technologies, and new business models and formats. As such, firms should utilize data resources innovatively to update their value logic, build digital ecosystems based on internet platforms, enhance digital technology integration to enable agile responses, and gain insights into emerging economic formats to promote cross-industry integration and innovation.

Keywords

digital economy / business model innovation / digital information / internet platform / digital technology

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2024 Higher Education Press