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Business Model Innovation Mechanism and Value Creation Effect of Data-Driven M&A—Case Study Based on Alibaba

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2021 International Conference on Big Data Analytics for Cyber-Physical System in Smart City (BDCPS 2021)

Part of the book series: Lecture Notes on Data Engineering and Communications Technologies ((LNDECT,volume 102))

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Abstract

Objectives: In order to systematically reveal the black box between M&As, business model innovation and value creation in the context of big data. Methods: To analyze the vertical evolution process and mechanism of business model innovation of M&As in the context of big data, nested case studies are chosen. Results: For exploratory M&As, Alibaba adopts novelty-oriented business model innovation mechanisms; For exploitative M&As, Alibaba adopts efficiency-oriented business model innovation mechanisms. For the former, Alibaba expands new business in content; in terms of structure, it improves the value chain, innovates key processes, expands the value network, meets customer value propositions, optimizes profit models and customer interfaces, and has a higher degree of integration in governance. For the latter, Alibaba strengthens existing businesses in content; in terms of structure, it optimizes the customer interface, meets customer value propositions, and expands the value network and has a lower degree of integration in governance. Conclusions: Both exploratory and exploitative M&As could achieve value creation through specific business model innovation mechanisms. Exploratory M&As are suitable for novelty-oriented business model innovation, exploitative M&As should carry out efficiency-oriented business model innovation.

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Acknowledgements

Ministry of Education Humanities and Social Sciences Project (18YJC630226); Hubei Province Soft Science Project (2019ADC075); Hubei Provincial Department of Education Humanities and Social Sciences Project (19D096); Dabie Mountain Tourism Economy and Cultural Base Project (201926503).

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Authors and Affiliations

  1. School of Business, Huanggang Normal University, Huanggang, 438000, Hubei, China

    Xingrui Yang

  2. School of Management, Huazhong University of Science and Technology, Wuhan, 430074, Hubei, China

    Xingrui Yang

  3. Shi Liangcai School of Journalism and Communication, Zhejiang Sci-Tech University, Hangzhou, 310018, Zhejiang, China

    Erna Qi

Authors
  1. Xingrui Yang
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  2. Erna Qi
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Correspondence to Xingrui Yang .

Editor information

Editors and Affiliations

  1. School of Computer Science, University of Oklahoma, Norman, OK, USA

    Mohammed Atiquzzaman

  2. University of Aizu, Aizuwakamatsu, Japan

    Neil Yen

  3. Shanghai Polytechnic University, Shanghai, China

    Zheng Xu

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© 2022 The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.

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Yang, X., Qi, E. (2022). Business Model Innovation Mechanism and Value Creation Effect of Data-Driven M&A—Case Study Based on Alibaba. In: Atiquzzaman, M., Yen, N., Xu, Z. (eds) 2021 International Conference on Big Data Analytics for Cyber-Physical System in Smart City. BDCPS 2021. Lecture Notes on Data Engineering and Communications Technologies, vol 102. Springer, Singapore. https://doi.org/10.1007/978-981-16-7466-2_80

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