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The sustainable performance of the digital start-up company based on customer participation, innovation, and business model

    Pri Agung Danarahmanto   Affiliation
    ; Ina Primiana Affiliation
    ; Yudi Azis Affiliation
    ; Umi Kaltum Affiliation

Abstract

The digital-based start-up industry in Indonesia has developed, but with a high failure rate. This research aims at elaborating the relationship between business model, entrepreneurial orientation, innovation, and sustainable performance on the digital start-up companies in Indonesia. The data were collected using offline and online surveys to 206 leaders or founders of digital start-up companies spread throughout Indonesia. Then, the data were then analysed using the structural equation model. The research results revealed that a business model had a significant role in achieving sustainable performance. A business model needs to be supported by customer participation and innovation. Innovation was more influential compared to customer participation in achieving companies’ sustainable performance. The indirect effect of customer participation and innovation on sustainable performance through the business model was greater than the direct effect not through the business model. The novelty of this research is the examination and analysis of the relationship between innovation, customer participation, business model, and sustainable performance in one model, and the use of digital start-up companies in Indonesia as the research analysis unit.

Keyword : business model, customer participation, digital startup, innovation, structural equation model, sustainable performance

How to Cite
Danarahmanto, P. , A., Primiana, I., Azis, Y., & Kaltum, U. (2020). The sustainable performance of the digital start-up company based on customer participation, innovation, and business model. Business: Theory and Practice, 21(1), 115-124. https://doi.org/10.3846/btp.2020.11053
Published in Issue
Mar 6, 2020
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This work is licensed under a Creative Commons Attribution 4.0 International License.

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