Assessing the Impact of Business Model Innovation on Firm Performance: Insights from the China Growth Enterprise Market

This article explores the impact of business model innovation (BMI) on firm performance by analyzing 2,970 annual reports of firms in the China Growth Enterprise Market (GEM) from 2012 to 2017. The dependent variable bmi is constructed using crawler technology to reflect the business model innovation of the research sample. Four financial indicators, i.e. gross profit ratio total assets (GPA), earnings per share (EPS), return on total assets (ROA), and return on equity (ROE), are used to represent firm performance. The results suggest that BMI has a positive impact on a firm's performance in China, and the robustness test confirms the findings. This study provides empirical evidence of the impacts of BMI on firm performance in the China GEM and offers managerial implications for governments, firms, and entrepreneurs.