Business model renewal and environment changes: Insights of Chinese textile industry

Chinese small and medium-size enterprises (SMEs) in the textile industry adapt and reshape their business models to cope with the environmental changes resulting from increasing labor costs and decreases in profits. Comparing with big firms, SMEs face more challenges when renewing their business operations. Reactions of SMEs are influenced by the extent of changes in the business model renewal process. The renewal of the business model includes resource configuration, updating purchasing and distribution channels, refining market segments, and rebuilding brands.