Measurement and analysis of corporate operating vitality in the age of digital business models

ABSTRACT

Digitalization is rapidly reshaping business models, especially the opportunities created by Internet access in business, which reflects the operating vitality in digital age. This paper constructs the Corporate Operating Vitality Index (CVI) Model to measure the activity of business corporations. We estimate CVI of Chinese firms during 2011 to 2013 by three dimensions of business, innovation and information-sharing, using data from China Enterprise Surveys (CES). The empirical results suggest that the CVIs of large-sized corporations is higher than which of SMEs and CVI of the manufacturing corporations is higher comparing to non-manufacturing corporations as the vitality cut-offs are at higher level. Additionally, CVI is sensitive to the change of the standard in identification of active corporations.

KEYWORDS:

• Corporate operating vitality
• dual cut-offs approach
• digital business models
• internet plus

JEL CLASSIFICATION:

• M21
• O30

Disclosure statement

No potential conflict of interest was reported by the authors.