Impact of Business Models: Evidence from Chinese TNCs

This empirical study employed the structural level model to assess the impact of business model, asset ownership structure, and operating performance On the value of Chinese transnational corporations (TNCs). Three conclusions were reached: First, the disparity between the maximum and minimum values of selected indices is rather significant, and this can be explained by the size of firms and their varied operating methods. Second, though operating performance positively impacts a company's value, asset ownership and operating model have overall negative effects. Third, indices such as FS/TS, transnational business methods, and operating models have negative effects on latent variables. Internal indices of ownership structure and proportion of state-owned shares have negative effects on ownership structure. Hence, we suggest that in order to achieve sustainable growth, domestic TNCs must be cautious in identifying international business models and investment fields, as well as in enhancing competitive capacity with the prerequisite of optimization of ownership structure and corporate governance.