Different coupling of business model innovation system across Chinese listed oil companies

ABSTRACT

The analysis of coupling and coordination within the business model innovation system of petroleum companies, especially in the context of Chinese petroleum companies, is crucial for enhancing their competitiveness. Using the entropy method and a coupling coordination model with data from 2015 to 2019, this study quantifies the levels of coupling and coordination within the business model innovation system of Chinese petroleum companies. We also examine spatial disparities and disparities along the industrial chain. The findings reveal that: 1) The value creation, transmission, and acquisition subsystems within the petroleum business model innovation system are highly coupled but lack inter-subsystem coordination. 2) Regional differences in the coupling and coordination of petroleum companies’ business model innovation systems are evident. The northeast China and central China show the highest coupling, while the South China and North China have lower coupling. Additionally, South China and Northwest China exhibit superior coupling coordination compared to the relatively weaker coordination in Northeast China. 3) Business model innovation systems vary across different industrial chain segments in the petroleum industry. Downstream companies show the best coupling coordination while upstream systems exhibit relatively weaker coordination. 4) Substantial disparities in core innovation system elements are evident across regions and industrial chain segments, underscoring the need for tailored development strategies and regulatory policies for the petroleum industry.

KEYWORDS:

• Oil companies
• business model
• coupling coordination degree
• differentiation

Acknowledgements

The authors gratefully acknowledge the helpful reviews and comments from the editors and anonymous reviewers.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

¹ Compared to Zheng and Han (2021), we have enhanced the selection of constituent elements and indicators to better suit the petroleum industry’s characteristics. It focuses on those elements and indicators that have a significant impact on the development of petroleum companies.

² The core components include elements from the value delivery and value acquisition subsystems, for the following reasons: In the value creation subsystem, there is no significant difference in the company’s age, product variety, and the number of product market regions across different areas. However, there is a considerable difference in the proportion of overseas product income across various regional segments, primarily due to the absence of overseas business in some companies. Therefore, this paper primarily analyzes the elements within the value delivery and value acquisition subsystems.

Additional information

Funding

The study is supported by the National Science Foundation projects of China [Grant No.71903180], and the Humanities and Social Sciences Youth Foundation, Ministry of Education of the People’s Republic of China [Grant No. 19YJC790018].