The Structure and Value Creation Process of Business Ecosystem——A Case of the Xiaomi Eco-chain

Abstract

Abstract:

Eco-chain is an effective instrument for firm growth through network. This paper selects Xiaomi eco-chain as a typical case of firms which catch up from behind. The formation of the business eco-chain is carefully reviewed in time series to answer the core research question, how a business ecosystem is constructed. The discussion of the transaction mode aims at explaining the internal relationship which the literature did not clearly state. We find that the transaction parties are selected based on their resources and needs, just as how Xiaomi carefully constructed Xiaomi eco-chain based on the property rights and requirements of all players, and that the matching process determines the transaction model, that is why the pricing process of sharing rather than giving mechanism is more often used. The paper studies the data from multiple sources, such as face-to-face interview with the person in charge of Xiaomi eco-chain and the start-ups, the company files, the public speeches of the CEO of Xiaomi and so on, and applies the business model theory to describe and explain the formation and value creation of a business ecosystem. The case of Xiaomi eco-chain provides an inspiring example of how an effective business ecosystem can be formed, and enlightens further researches of the business ecosystem.

Key words: business model, business ecosystem, Xiaomi, Xiaomi eco-chain

Tan Zhijia, Wei Wei, Zhu Wuxiang. The Structure and Value Creation Process of Business Ecosystem——A Case of the Xiaomi Eco-chain[J]. , 2019, 31(7): 172-185.

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