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Customer-based Business Model for Digital Start-up Sustainability

Digital startup enterprises have a high rate of failure. One of the reasons for failure is a not working business model due to the lack of customer involvement in the company. Then aim of this study is to identify the effect of customer participation, business model, and sustainable performance on startup enterprises. This study is organized in 2018 through a one shoot cross section. The study’s unit of analysis is digital-based startup enterprises in Indonesia, with 100 founder(s) or the manager(s) of the enterprises as the unit of observation. The analysis is done through regression-based path analytic. The result of this study shows that customer participation has an influence on business model, business model has an influence on sustainable performance, and customer participation has an influence on sustainable performance through business model. The implication of this study is the importance of developing business model and involving the customers in the enterprise to support the sustainability of digital startup enterprises in Indonesia. Keywords—business model; customer participation; sustainable performance; digital; start-up