A Business Model for Knowledge-Based Service Enterprises in China: The Case Study of Kunshan

Abstract

This research aims to offer new business insight into knowledge-based service enterprises in China. In particular, a service approach, namely, the IIS (innovation intensive service) platform, is adopted as an analytical tool to illustrate the development of service platforms. A case study of the industry cluster in Kunshan City is also used to demonstrate the validity of this research. This approach integrates the platform strategy, service package and network externalities to diffuse innovation. Service packages are created and delivered with a high degree of customization including unique, selective, restricted and genetic services. The result shows that not only can a new business model be applied to assist existing manufacturing in value upgrading, it can also provide a niche opportunity for SMS development under highly intensive global competition.