Abstract: The mobile internet era comes with the combination of online and offline(O2O), which has brought a great transformation to traditional business models, so O2O business model innovation becomes an important strategic choice for startups to realize value-creation and gain competitive advantage. But during the last four years, a number of O2O startups had failed, which brought two questions:What is wrong with those failed startups' O2O business model? Which innovation orientation of O2O business model can reduce the risk of entrepreneurial failure? So according to the typical business practice of O2O entrepreneurial failure, from the perspective of business model innovation and value creation, and based on two new theories such as service dominant logic and internet economics, failed O2O startups are set as research sample and empirical study is used to analyze this phenomenon, aiming at exploring the link between innovation orientations of O2O business model and entrepreneurial failure. Firstly, efficiency-oriented and value-oriented business models are introduced as two sorts of O2O business model innovation orientations, afterwards, the framework of the link between innovation orientations and entrepreneurial failure is established under the moderating effect of entrepreneurial environment and industrial competition. Then, the O2O startups whose duration period is from 2013 to 2016 are chosen as research sample, according to the information collected from databases such as Zero2IPO, Wind, Chinaventure and online channels such as ITjuzi, text mining and case survey are adopted to transfer unstructured case information into numeral rating to precisely measure relevent constructs. Finally, a hierarchical regression model is built to test theoretical hypotheses. The final empirical results show that both efficiency-oriented and value-oriented business models can reduce the risk of entrepreneurial failure, when entrepreneurial environment is relatively good, startups with efficiency-oriented business model are less likely to fail, when industrial competition is relatively fierce, startups with value-oriented business model are less likely to fail, whereas those whose business model is efficiency-oriented are more likely to fail. This paper has two main significances:Academically, it enriches relevant study on the character of business model innovation and the reason of entrepreneurial failure; Practically, the findings can help O2O startups reduce the risk of entrepreneurial failure.

Key words: O2O business model, innovation orientations, value creation, entrepreneurial failure, empirical study