The Effects of Operating Cost Control and UP Owner Incentives on Firm Performance in BiliBili Company

Abstract

In the highly competitive digital content platform landscape, BiliBili, as a prominent player, faces the challenge of optimizing its operational strategies to enhance firm performance. This involves effectively managing operating costs and incentivizing its UP owners, who are pivotal to its ecosystem.
This study aimed to investigate the impact of BiliBili’s operating cost control and UP owner incentives on firm performance, by examining the effects of cost control intensity, cost control precision, UP owner incentive fund amount, and incentive form.
Grounded in Strategic Cost Management Theory and Equity Theory, this study constructed an influencing factor structural model and verified research hypotheses through a quantitative research approach. A questionnaire survey was employed for data collection, with a total of 400 questionnaires distributed to a targeted population of BiliBili users and stakeholders. After screening, 325 valid responses were obtained, yielding an effective response rate of 81.25%. Data analysis was conducted to test the proposed model and hypotheses.
The study revealed that all four factors—cost control intensity, cost control precision, UP owner incentive fund amount, and incentive form—exert a significant influence on BiliBili’s firm performance. Higher cost control intensity and precision, along with a reasonable incentive fund amount and optimized incentive form, contribute positively to enhancing firm performance. Based on these findings, this study proposes strategic recommendations to enhance BiliBili’s firm performance: (1) Strengthen cost control intensity; (2) Improve cost control precision; (3) Set a reasonable UP owner incentive fund amount; (4) Optimize incentive form.

Keywords: BiliBili Company, cost control, UP owner incentives, firm performance