Research on the evolution of the innovation ecosystem of the Internet of Things: A case study of Xiaomi(China)

With the support of industry trends and policies, the Internet of Things is seen as another revolution in the world’s information technology industry. Many companies hope to establish a huge Internet of Things ecosystem through the business ecosystem to achieve rapid expansion and growth. This research selected Xiaomi, the world’s largest consumer-level IoT platform, and tried to explore the growth and development mechanism of its IoT innovation ecosystem by analyzing the development logic of Xiaomi enterprises. The research conclusions show that the Xiaomi IoT innovation ecosystem has evolved through four stages of development, expansion, layout, and maturity. Through the four paths of building market entry, investing in incubating niche products, establishing a bamboo forest ecology, and building an IoT open platform, the ecological map of the Xiaomi IoT ecosystem is finally formed. This research aims to provide guidance and suggestions on business models, evolution strategies, and dynamic capabilities for other companies through path analysis of typical cases.