The Mechanism of How Business Model Innovation and Digital Empowerment Drive Digital Transformation——A Case Study Based on TJ-QCA

Abstract

Abstract: Digital empowerment and business model innovation are two important driving factors for enterprises to realize digital transformation. This paper uses case studies and trajectory-based qualitative comparative analysis to explore the mechanism of how the two factors synergistically act on manufacturing enterprises' digital transformation, and tracks the evolution path of their transformation process. The research finds that the transformation mechanism of digital empowerment includes control empowerment, analytical empowerment and cascade empowerment; the business model innovation mechanism mainly includes income-generating business model and orchestration business model; there are four paths for the two factors to synergistically drive the digital transformation:industry coupling drive, independent innovation drive, capacity connection drive and control auxiliary drive; and among them, industrial coupling drive and independent innovation drive are the most conservative paths. Analytic empowerment, cascade empowerment, income-generating business model and orchestration business model are core conditions to promote the digital transformation of manufacturing enterprises, while control empowerment is a marginal condition. The research results reveal the trajectory along which digital empowerment and business model innovation synergistically promote digital transformation, and reveal the laws behind it, so the conclusions can be used as a reference for manufacturing enterprises to carry out their digital transformation.

Key words: digital empowerment, business model innovation, TJ-QCA, multi case study, configuration analysis

Liu Sihui, Li Wen, Yu Rongjian, Mei Lei. The Mechanism of How Business Model Innovation and Digital Empowerment Drive Digital Transformation——A Case Study Based on TJ-QCA[J]. Management Review, 2023, 35(8): 342-352.

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