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28 December 2016, Volume 28 Issue 12 Previous Issue    Next Issue

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Research on Demand Diffusion and Purchase Decision in the Internet Financial Market Chen Jiyong, Chen Long, Chen Jun 2016, 28 (12):  3-13.  Abstract ( 225 )   PDF (1330KB) ( 782 )   Demand and purchase are driving the fast growing Internet finance that has tremendously shocked the traditional banking. Based on General Bass Model and Evolutionary Game Theory, this paper constructs a market demand diffusion model and purchase decision model of the monetary market fund, then analyzes and discusses the Chinese market through the data from 2013 to 2015. According to the results, the analytical model is applicable to the first stage of the market development; the ratio between dependent purchase decisions and profit-driven purchase decisions is 9:1; dependent decisions are significantly impacted by the distribution channels and the profit-driven purchase decisions are more rational; in the competitive market, dependent decisions change before the profit-driven decisions as the latter is impacted by long-term return ratio. Finally suggestions are provided for market participants to adapt themselves to the "newly normal" market. This paper may contribute to the theoretical analysis and the market innovation development of Internet finance. References | Related Articles | Metrics

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Issuance Systems, Trading Mechanisms and Earning Information in Bond Pricing Lyu Huaili, Zhong Yuxiang, Li Wanli 2016, 28 (12):  14-29.  Abstract ( 161 )   PDF (1211KB) ( 732 )   This paper documents how earnings persistence and the change of earnings affect bond pricing. We find that earnings persistence is negatively related to the underpricing of initial public offerings (IPOs) in the corporate bond market. In bond trading market, quarterly incremental earnings and cash flows are positively related to cumulated abnormal returns while quarterly incremental accruals are negatively related to cumulated abnormal returns. In addition, the relation is more significant in bonds audited by registration system than it is in bonds audited by approval system, indicating that the registration system is more efficient in bond pricing. These relations are more significant under public-bidding system than they are under market-maker system, implying that the public-bidding system is more efficient than market-maker system in bond pricing. References | Related Articles | Metrics

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Media Coverage, Institutional Ownership and Stock Price Non-synchronicity Yang Jie, Zhan Wenjie, Liu Ruizhi 2016, 28 (12):  30-40.  Abstract ( 277 )   PDF (1157KB) ( 636 )   Based on the theories that explain how media coverage and institutional ownership affect stock price fluctuations, this paper examines the relationship between stock price non-synchronicity and media coverage, and the effect of institutional ownership's proportion on this relationship, by using data from Baidu search engine and from Chinese listed companies. The results show that there is a U-shape relationship between the stock price non-synchronicity and the media coverage, i.e. the stock price non-synchronicity decreases with the increment of the number of media coverage when a stock is poorly reported by media, while it increases with the increment of the number of media coverage when it is reported richly. Moreover, the proportion of institutional ownership will reduce the above U-shape relationship. The findings suggest that the media plays a role of information provider in Chinese stock market on the whole, and direct evidence is provided to demonstrate different investors' reactions to media. References | Related Articles | Metrics

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Overconfidence, Analyst Coverage and Capital Market Pricing Efficiency——An Empirical Study Based on R2 Jin Dawei, Feng Luxi 2016, 28 (12):  41-53.  Abstract ( 154 )   PDF (1156KB) ( 561 )   This paper examines the effect of investor overconfidence on stock price synchronicity, and the influence of analyst coverage on the relationship between them. Based on the data of Chinese listed companies from 2008 to 2014, we find a significantly negative relationship between R-square and the degree of investor overconfidence. The negative relationship declines as analyst coverage increases. Our evidence suggests that both irrational factor and firm-specific information have significant impacts on stock price synchronicity. From the perspective of investor overconfidence, our study provides new empirical evidence regarding the nature of R-square. References | Related Articles | Metrics

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Government R&D Funding, Financial Credit and Enterprise Technology Innovation Li Xingong 2016, 28 (12):  54-62.  Abstract ( 259 )   PDF (1079KB) ( 717 )   Based on the statistical data of Chinese manufacturing industry from 2000 to 2013, this paper employs methods of panel data regression analysis to research the impact of direct government R&D subsidy and indirect government R&D subsidy on technological innovation. The results show that direct government R&D subsidy and indirect government R&D subsidy have a significantly positive effect on technological innovation. Financial credit and firm size have a significantly positive moderating effect, while industry technical level has no significantly moderating effect, regardless of promoting direct government R&D subsidy or indirect government R&D subsidy. This paper suggests that the financial credit environment should be improved for the government R&D subsidies to play a better role, the government should aim at specific enterprises when providing subsidies, and both direct and indirect government R&D subsidies should be used for technological innovation. References | Related Articles | Metrics

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Will Demolition Promote Entrepreneurial Intension of Farmers? An Empirical Study Based on 289 Samples Lin Song, Liu Qing, Li Peixin 2016, 28 (12):  63-74.  Abstract ( 166 )   PDF (1166KB) ( 559 )   This paper focuses on the relationship between demolition and entrepreneurial intension of farmers. It constructs an entrepreneurial intention model of farmers which includes the variables of need for achievement, institutional environment and self efficacy. Based on the theory of regulatory focus of promotion, the paper uses demolition as a major moderation variable intervening the psychological process of entrepreneurial intension emerging. We collect data from farmers living in rural Beijing. With 289 samples, the results show that need for achievement, perceived institutional environment and self efficacy have positive impact on farmers' entrepreneurial intension, meanwhile, demolition moderates the relationship between perceived institutional environment and entrepreneurial intension, which does not occur for the relationship between need for achievement and entrepreneurial intension. References | Related Articles | Metrics

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Study on Earning Management under the Corporate Life Cycle: Based on the Debt Covenants Theory Wang Yun, Li Yanxi, Song Jinbo, Ma Zhuang 2016, 28 (12):  75-91.  Abstract ( 266 )   PDF (1233KB) ( 814 )   Based on debt covenants theory, with the cash flow patterns as a proxy for firm life cycle, the Chinese listed companies in the 2002-2011 are divided into three kinds of life cycles:growth, maturity and decline, and according to this, in this paper the impact of life cycle and capital structure on earnings management and the way of it are researched. The study finds:different industry cycle has a direct impact on its earnings management, the companies in the cycle of growth and decline have a higher capital structure, which leads to a higher earnings management; the life cycle of growth has a direct positive impact on the accrual and real earning management, and decline cycle has a direct positive impact only on the accrual earning management;and considering the debt covenants condition, the enterprises of growth cycle and decline cycle are inclined to reduce the accrual earning management, however, the enterprises of decline cycle will choose the real earning management, which is more invisible and more costly. References | Related Articles | Metrics

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Research on International Industrial Division and Enterprises' Cross-border M&A:Based on M&A Strategy Cheng Cong, Liu Fengting, Chi Renyong, Guo Yuanyuan 2016, 28 (12):  92-100.  Abstract ( 173 )   PDF (1060KB) ( 552 )   International industrial division is a fundamental factor that drivens enterprises to carry out cross-border M&A strategy. This paper collects the data from the enterprises that exercise cross-border strategies in mainland from 2001 to 2014, and makes an empirical study to explore the relationship between international industrial division and cross-border M&A performance from the perspective of M&A strategy. The results show that:(1) international industrial division has a significant influence on enterprises' cross-border M&A performance, and a more positive effect on private enterprise's cross-border M&A performance; (2) enterprises' M&A strategy has a partial moderating effect between international industrial division and private enterprises' M&A performance, while there is no signifi-cantly moderating effect between international industrial division and state-owned enterprises' M&A performance; (3) industry type has a negative relationship with enterprises' crossborder M&A performance, or in other words, the more sensitive industry where a cross-border M&A takes place, the less likely the M&A will be successful. Our results are meaningful for China's enterprises that may carry out cross-border M&A. References | Related Articles | Metrics

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Allocation of Control Rights, Power Balance and Investment Efficiency Dou Wei, Ma Lili, Liu Xing 2016, 28 (12):  101-115.  Abstract ( 135 )   PDF (1164KB) ( 680 )   Based on the allocation of control rights and power balance, this paper uses Stochastic Frontier Analysis Model to study companies' investment efficiency under three models of control right allocation. The result shows that:(1) Investment efficient loss widely exists in Chinese listed companies:the estimation of over-investment by SFA model is 18.97% higher than the optimal level, and the estimation of investment-deficiency by SFA model is 16.04% lower than the optimal level. (2) The result in all models shows that the investment efficiency loss can be attributed to the separation of cash flow rights and control rights. (3) In the case of multiple shareholders controlling, the efficiency loss depends only on the relative shareholding of multiple shareholders, instead of the absolute shareholding of the shareholders. And the efficiency loss in companies' investment expenditure varies with the different features of power balance. References | Related Articles | Metrics

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Study on the Multilayer Airport System in China Based on Evaluation of Airport Competitiveness Liang Xiaozhen, Lai Kinkeung, Liu John, Qiao Han, Yin Hongxia 2016, 28 (12):  116-126.  Abstract ( 190 )   PDF (1123KB) ( 897 )   In order to study the multilayer airport system in China, this paper designs a systematic evaluation methodology. Firstly, we establish an evaluation index system of airport competitiveness, which includes 30 indicators and mainly covers two aspects:self-development of the airport and its location conditions. Then based on the index system, we apply entropy weight method, grey relational analysis and principal component analysis, to evaluate the competitiveness of 42 major airports in China for the years 2006, 2008, 2010 and 2012 respectively. The consistency of these three methods is examined by Mann-Kendall test. A combined evaluation is conducted and reasons for the great variation in rankings for some airports during the period of 2006-2012 are analyzed. Finally, we also give the rankings of the 42 airports and the factors affecting their respective competitiveness to investigate the advantages and disadvantages of each airport, and divide all 42 airports into four groups by applying hierarchical clustering. According to the results of evaluation, as well as the development features of Chinese airport industry, the competitive advantages of each airport, and differences between them, this paper puts forward some policy proposals for the construction of multilayer airport system in China. References | Related Articles | Metrics

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What Kind of Entrepreneurial Team Can Help Reduce Turnover Intention?——From the Perspective of Interpersonal Trust Zhang Guangqi, Chen Zhongwei, Li Honggui 2016, 28 (12):  127-144.  Abstract ( 181 )   PDF (1238KB) ( 708 )   In order to shed new light on the academic and practical hot topic of how to reduce top management' turnover intention and how to prevent new ventures from being split up by top management' breakup, this paper introduces interpersonal trust as a mediating variable and constructs a relation model of entrepreneurial teams' organizational characteristics and the employees' turnover intentions. We take upper-and mid-level managers in new ventures less than 8 years old as samples and use all the data from field investigation. The findings show that entrepreneurial teams' organizational characteristics have a significant negative correlation with the employees' turnover intentions, and they all have significant positive correlation with both the employees' cognition-based trust and affect-based trust. Entrepreneurial team members' cognition-based trust has a significant negative correlation with the employees' turnover intentions, and cognition-based trust plays a mediating role between entrepreneurial teams' organizational characteristics and the employees' turnover intentions. At last, combining with the traditional culture of Chinese specific background, this paper also points out three ways to focus on the construction of entrepreneurial teams in new ventures:the relationships between entrepreneurial teams' organizational characteristics' similarity and heterogeneity, the evolutionary path of entrepreneurial team members' interpersonal trust relationships, and the inherent formation mechanism of top management' turnover intentions. References | Related Articles | Metrics

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Employment Status and Indirect Household Carbon Emissions:Micro Evidence from Urban China Xu Xinkuo, Han Liyan 2016, 28 (12):  145-154.  Abstract ( 195 )   PDF (1144KB) ( 596 )   Climate policies have impacts on employment. Conversely, does employment affect carbon emissions? Using the survey data from households in urban China and based on the STIRPAT model, this paper analyzes the impact of employment status on household carbon emissions resulting from consumption. The findings include:the affecting coefficients of employment, unemployment and retirement are 0.0927, -0.233 and -0.157 respectively; this implies that the changes of employment status will induce the changes of household carbon emissions resulting from consumption. Specifically, employment increases household carbon emissions through consumptions in clothing, equipment, housing, communications, transportation, education or recreation; retirement increases household carbon emis-sions by means of healthcare; students produce more carbon emissions through food consumption. These findings are helpful for household emission mitigation policies. References | Related Articles | Metrics

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Perceived Trust and Project Performance: The Mediating Effects of Organizational Commitment Sun Xiuxia, Zhu Fangwei, Song Haoyang 2016, 28 (12):  155-165.  Abstract ( 221 )   PDF (1161KB) ( 780 )   To explore the way in which enterprises improve project performance through managing the project managers, this study examines the influence of perceived trust of project managers on project performance from the perspective of project management, and builds a mediating model which shows the mediating effects of organizational commitment between perceived trust of project managers and project performance. By means of 232 samples of project managers from different areas including chemical engineering construction, consulting, real estate and so on, we test the model by applying hierarchical regression, correlation analysis, Bootstrap analysis and other statistical methods. Results of the analyses suggest that perceived cognitive trust of project managers has significant effect on affective commitment, normative commitment and continuance commitment, while perceived affective trust only affects affective commitment and normative commitment significantly with the exception of continuance commitment. Project managers' perceived trust not only has a direct positive effect on project performance, but also has indirect impacts via the influence of affective and normative commitment. As for the mediating effects of organizational commitment, affective commitment makes the most impact, normative commitment comes second and continuance commitment doesn' t have any mediating effect between affective or cognitive trust and project performance. The results also show that project managers' perceived cognitive trust plays a more significant effect on organizational commitment and project performance than their perceived affective trust, for the reason of the special characters of project manager's responsibility. These findings suggest that enterprises should build the trust of project managers' perception, especially the perceived cognitive trust, and take full advantage of affective and normative commitments of project managers in project management; Moreover, more attention should be paid to nurture the perceived affective trust and continuance commitment of project managers from a long-term perspective of enterprise sustainable development. References | Related Articles | Metrics

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Relationship between Enterprise Life Cycle Stages and the Risk-taking Based on the Moderate Effect of Investor Sentiment Wang Xingyu, Yao Haixia, Wang Kaiyang 2016, 28 (12):  166-175.  Abstract ( 218 )   PDF (1092KB) ( 510 )   This paper studies the relation between enterprise life cycle stages(LCS) and the risk-taking as well as the effect of investor sentiment on this relationship. On the basis of the construction of investor sentiment index, we find that enterprises take higher risks in their initial and recession LCS than in their growth and mature LCS. Rising investor sentiment will increase the risk-taking ability of the enterprises in different LCS. Further study finds that to the enterprises in different industries, LCS has different influence on their risktaking. Investor sentiment asymmetrically impacts the relationship between LCS and the risk-taking. Specifically, enterprises in the first industry take high risks in their initial life cycle; enterprises in the second industry take much lower risks in their growth and mature LCS, but higher risks in their recession LCS. Enterprises in the third industry take lower risks in their mature LCS and higher risks in their decline LCS. Rising investor sentiment can significantly increase the risk-taking ability of the second industry enterprises in their growth LCS and the third industry enterprises in their growth, mature and decline LCS. References | Related Articles | Metrics

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How to Make Your WeChat Brand Posts Popular?——Empirical Evidence from Well-known Brands Peng Chenming, Zhang Sha, Zhao Hong 2016, 28 (12):  176-186.  Abstract ( 294 )   PDF (1148KB) ( 849 )   WeChat is the largest and youngest mobile social networking app in China. Due to its massive number of users, high user stickiness, and low marketing costs, many companies have used WeChat as a new communication tool to push branded posts to their subscribers. Compared to other social media sites such as Facebook, WeChat is relatively new and has unique features. Thus, there are too few theories that guide companies to implement effective WeChat communication strategies. Based on 334 WeChat posts from 8 wellknown brands across 4 industries, this study investigates possible drivers of WeChat post popularity (measured by the number of reads/likes). Our results show that how a post is positioned, how long it is posted, and how informative it is affect both the number of reads and the number of likes. The presence of promotional information in the post title only affects the number of reads. We also find a marginal significant negative effect of the (warm) color of the cover picture on the number of reads. However, vividness and entertainment do not have a significant effect on WeChat post popularity. References | Related Articles | Metrics

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Customer Commitment, Self-Enhancement and Customer Citizenship Behavior: Driving Mechanism and Moderating Effect from the Perspective of Social Exchange Theory Sun Naijuan, Guo Guoqing 2016, 28 (12):  187-197.  Abstract ( 232 )   PDF (1156KB) ( 961 )   Taking online retail industry as an example, this study jumps out of the horizon limitation of existing theories in explaining customer citizenship behavior and tries to apply a new theoretical view of Social Exchange Theory and Impression Management Theory to discuss the differentiated impact of customer commitment on customer citizenship behavior as well as explore the moderating effect of selfenhancement on customer citizenship behavior. The results indicate that affective commitment has stronger influence on all the three dimensions of customer citizenship behavior compared with that of calculative commitment. Calculative commitment is the motivating factor of customer citizenship behavior, whereas affective commitment is the hygiene factor of customer citizenship behavior. In addition, compared with low self-enhancement individuals, high self-enhancement individuals who fulfill customer citizenship behavior are based on impression management needs. Whereas, compared with high self-enhancement individuals, low self-enhancement individuals who fulfill customer citizenship behavior are based on reciprocal feedback needs. Based on the research results, this paper provides a decision basis for online retail service design in order to enhance customer citizenship behavior in practice. References | Related Articles | Metrics

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HSM-based Enterprise WeChat Study:An Empirical Analysis of P2P Lending Companies Du Helen S, Ke Xiaobo, Hou Rui, Zhu Lin, Chen Yangsen 2016, 28 (12):  198-212.  Abstract ( 231 )   PDF (1211KB) ( 1195 )   In the era of mobile socialization, firms are actively looking for new strategies, new ways of leveraging a huge number of mobile users to enhance their social influence in order to obtain competitive advantage. The emergence of mobile social media, such as WeChat, provides a great opportunity for firms to attain the competitiveness during such transformation. Current researches regarding the influence of firm-based mobile social media have just started, and the findings still cannot meet the urgent need of firms to stand out in the increasingly fierce competition to become the final winner. In view of this, our study draws on the heuristic-systematic model to build the enterprise WeChat influence model. The authors posit that the heuristic cues (i.e. certification information richness and content freshness) as well as the systematic cue (i.e. mobile transaction navigation) can potentially affect enterprise WeChat popularity. The content analysis result of 183 WeChat public platforms of P2P lending firms strongly supports these hypotheses. The study expands our understanding of the related knowledge from a social cognition perspective and calls for design attention to influential media-embedded factors when developing firm-based mobile platforms. References | Related Articles | Metrics

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Mixed Channel Strategy for Manufacturers to Cope with Strong Retailers in Supply Chain Dan Bin, Qu Zhenjing, Zhang Haiyue, Liu Can, Zhang Xumei 2016, 28 (12):  213-224.  Abstract ( 166 )   PDF (1158KB) ( 636 )   In the supply chain with only traditional channel, a strong retailer can dominate the competition with manufacturers by controlling purchase price. Aiming at this issue, this paper develops a mixed channel strategy for manufacturers to cope with the competition from traditional retailers through adding direct channel or electronic retail channel and builds a model for manufacturers to select channels. Based on the influence of channel difference on consumer utility, optimal decisionmaking model of supply chain with only a traditional channel and Stackelberg game models of supply chain members in the two kinds of dualchannel supply chains are built. The results show that the choice between the two mixed channel strategies depends on the cost structure of the electronic channels and the evaluation of consumers on the product. Strong retailer can no longer dominate the competition by controlling purchase price if the manufacturer adds an electronic channel. Given that more consumers will accept electronic channel when ecommerce becomes more popular, manufacturers can build electronic channel earlier to weaken the resistance of traditional retailers and promote the benign development of the supply chain. References | Related Articles | Metrics

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The Impact of Consumers' Quality Identification on the Decisions of Quality and Price in an Agricultural Product Supply Chain Gu Chuan, Luo Luan 2016, 28 (12):  225-234.  Abstract ( 153 )   PDF (1156KB) ( 548 )   Consumer's perception of the quality of agricultural products in the market will influence the strategies of the upstream enterprises. In this paper, the market is assumed to be under two opposite conditions:one is that agricultural product quality is identifiable and the other unidentifiable. The agricultural products supply chain is divided into three structures depending on the dominant firms and Stackelberg Game Model is used to discuss quality investment and product price. The research reveals that when quality is unidentifiable, the quality investment and product price of the supply chain are affected by the market price elasticity; when quality is identifiable, the quality investment and product price of the supply chain increase with the increase of the quality identification capability, and quality investment and price are relatively high in the producer-driven supply chain, but the integrated decision-making enterprises will make some certain quality investment after careful selection, which can contribute to a benign development of high quality and high price. References | Related Articles | Metrics

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Measurement Error Analysis for Activity-based Costing with New Orders under the Consideration of Resource Consumption Pattern Wu Xiaodan, Li Juan, Liu Dan, Yue Dianmin, Chao-Hsien Chu 2016, 28 (12):  235-243.  Abstract ( 151 )   PDF (1397KB) ( 327 )   Undoubtedly, new orders bring new operations and affect resource consumption which leads to cost reassignment in activitybased costing system. On that condition, the cost model is refined and total cost error model is proposed by analyzing the two resource consumption distributions of cost pool, the proportion distribution of resource and three measurement errors on the basis of resource sharing. With the analysis of measurement error model, we obtain the correlation between robustness of measurement errors in activity-based cost system and resource consumption pattern. Finally, we find that the robustness of cost system grows better as the proportion of resource utilization decreases and the robustness may not get worse as the difference of resource cost pools' size increases. This provides a basis for how to (1) eliminate measurement errors under diversity, (2) schedule limited resources and (3) raise cost accuracy. References | Related Articles | Metrics

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The Elements of “Door to Door” O2O Business Model and Their Relationship: An Explorative Research Kong Dong, Zuo Meiyun, Sun Kai 2016, 28 (12):  244-257.  Abstract ( 221 )   PDF (1502KB) ( 916 )   Although "door to door" O2O model, as a new business model of electronic commerce, receives much concern from both practitioners and scholars, the elements and their relationships are not defined clearly. Drawing upon 3 leading players in China's ecommerce sector:Eleme, Tidy Washing and Didi, this paper induces three elements:value proposition (including key service and door to door service), value creating network (including network member, key operation process and key resource) and value realization (including structure of cost and source of revenue) through coding approach of Grounded Theory. The relationships between value proposition and value creating network are mechanism of value realization and mechanism of adjusting value proposition. The relationships between value creating network and value realization are mechanism of revenue distribution and mechanism of adjusting revenue distribution. These relationships are induced from dynamic perspective. References | Related Articles | Metrics

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Research on the Dynamic Value Co-creation in the Sharing Economic Background:A Case Study of the Travel Platform Yang Xuecheng, Tu Ke 2016, 28 (12):  258-268.  Abstract ( 457 )   PDF (1213KB) ( 2137 )   This study focuses on the travel platform and takes Uber for example to describe the value co-creation process of travel platform through depth interviews and workshops, and to identify the key factor which influence value co-creation based on the customer perspective. Then the weights of the influencing factors are analyzed by the analytic hierarchy process. The results of the study show that passenger travel experiences are influenced by three stages, in accordance with the influence from high to low in order:ride, orders, payment; the key value cocreation factors in each stage are as follows:vehicle condition, citizenship behavior, communication and dialogue, participation behavior, interactivity, information sharing and transparency according to the influence from high to low. Finally, based on the theory of service marketing, value co-creation and sharing economic theory, this paper puts forward the framework model of dynamic value co-creation under the background of sharing economy. The significance of this research lies in that it provides a new framework for enterprises to understand the value co-creation process in the sharing economic background, so as to help enterprises to enhance the value of the service system. References | Related Articles | Metrics