With the rise of the platform economy, the retail industry is facing great pressure to shift from a traditional growth model to a platform-based growth model. The one-sided market theory applicable to the traditional business models cannot adequately explain business model innovation in the platform-based growth model. Based on a systematic analysis of the platform economy theory, business model innovation theory, value co-creation theory, and dynamic capability theory and in light of the characteristics of the retail industry, this paper proposes that to achieve platform-based growth, retail business model innovation should be focused on changing the ways to create customer value and capture enterprise value and leveraging modern information systems to achieve value co-creation during the transformation of key
business processes ranging from procurement and sales to distribution. In addition, enterprises must get rid of the mindset of making profi ts from the difference between buying and selling prices and should instead explore new sources of revenue through linking dividend and information value. As platform operators, retail enterprises need to develop dynamic capabilities through the interaction of heterogeneous resources of various platform participants and especially the introduction of social resources, so as to propel innovation in retail business models and ultimately the transformation from traditional growth to platform-based growth.
Keywords: platform-based growth, business model, value co-creation, information value
China Finance and Economic Review
Volume 9 Number 1 Spring 2020.P108