IDEAS home Printed from https://ideas.repec.org/a/spr/infosf/v19y2017i4d10.1007_s10796-016-9638-x.html
   My bibliography  Save this article

A viability theory for digital businesses: Exploring the evolutionary changes of revenue mechanisms to support managerial decisions

Author

Listed:
  • Michaela Sprenger

    (University of St. Gallen, Institute of Information Management)

  • Tobias Mettler

    (University of St. Gallen, Institute of Information Management)

  • Robert Winter

    (University of St. Gallen, Institute of Information Management)

Abstract

The ongoing integration of Information Technology (IT) into various areas of our lives has led to a plethora of digital products and services. To survive competition in the long run, these offerings not only have to keep up with constant technological developments, but also have to adapt from a business point of view. Managers of these digital businesses have to especially focus on the design and evolution of their business’ revenue mechanisms to ensure the viability of their offerings. The related decisions are not trivial, as managers have to be aware of the relevant contextual factors and have to react quickly to changes in the environment. This paper proposes a viability theory for digital businesses described by 17 propositions that may guide managers in the design of revenue mechanisms and thereby support the evolution as well as the viability of a digital business.

Suggested Citation

  • Michaela Sprenger & Tobias Mettler & Robert Winter, 2017. "A viability theory for digital businesses: Exploring the evolutionary changes of revenue mechanisms to support managerial decisions," Information Systems Frontiers, Springer, vol. 19(4), pages 899-922, August.
    • Handle: RePEc:spr:infosf:v:19:y:2017:i:4:d:10.1007_s10796-016-9638-x
    DOI: 10.1007/s10796-016-9638-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10796-016-9638-x
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10796-016-9638-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Chulmo Koo & Jaeki Song & Yong Jin Kim & Kichan Nam, 2007. "Do e-business strategies matter? The antecedents and relationship with firm performance," Information Systems Frontiers, Springer, vol. 9(2), pages 283-296, July.
    2. De Liu & Jianqing Chen & Andrew B. Whinston, 2010. "Ex Ante Information and the Design of Keyword Auctions," Information Systems Research, INFORMS, vol. 21(1), pages 133-153, March.
    3. Michael J. Shaw, 2000. "From E-Business to Electronic Commerce: Integration of Web Technologies with Business Models," Information Systems Frontiers, Springer, vol. 2(1), pages 5-6, January.
    4. Morris, Michael & Schindehutte, Minet & Allen, Jeffrey, 2005. "The entrepreneur's business model: toward a unified perspective," Journal of Business Research, Elsevier, vol. 58(6), pages 726-735, June.
    5. Giovanni Dosi & Richard R. Nelson, 2000. "An Introduction to Evolutionary Theories in Economics," Chapters, in: Innovation, Organization and Economic Dynamics, chapter 11, pages 327-346, Edward Elgar Publishing.
    6. Marc Bourreau & Michel Gensollen & François Moreau, 2012. "The Impact of a Radical Innovation on Business Models: Incremental Adjustments or Big Bang?," Industry and Innovation, Taylor & Francis Journals, vol. 19(5), pages 415-435, July.
    7. Vecchiato, Riccardo, 2012. "Environmental uncertainty, foresight and strategic decision making: An integrated study," Technological Forecasting and Social Change, Elsevier, vol. 79(3), pages 436-447.
    8. Jan Fagerberg, 2003. "Schumpeter and the revival of evolutionary economics: an appraisal of the literature," Journal of Evolutionary Economics, Springer, vol. 13(2), pages 125-159, April.
    9. Michel de Lara & Vincent Martinet & Luc Doyen, 2015. "Satisficing versus optimality: criteria for sustainability," Post-Print hal-01123050, HAL.
    10. Ron Sanchez & Aimé Heene, 1997. "Managing for an Uncertain Future," International Studies of Management & Organization, Taylor & Francis Journals, vol. 27(2), pages 21-42, June.
    11. Shancang Li & Li Da Xu & Shanshan Zhao, 2015. "The internet of things: a survey," Information Systems Frontiers, Springer, vol. 17(2), pages 243-259, April.
    12. Cornelia C. Krueger & Paula M.C. Swatman, 2004. "Developing e-business models in practice: the case of the regional online newspaper," International Journal of Information Technology and Management, Inderscience Enterprises Ltd, vol. 3(2/3/4), pages 157-172.
    13. B. Demil & X. Lecocq, 2010. "Business model evolution : in search of dynamic consistency," Post-Print hal-00572915, HAL.
    14. Oliver Hinz & Martin Spann, 2008. "The Impact of Information Diffusion on Bidding Behavior in Secret Reserve Price Auctions," Information Systems Research, INFORMS, vol. 19(3), pages 351-368, September.
    15. Ying-Ju Chen & Sridhar Seshadri, 2007. "Product Development and Pricing Strategy for Information Goods Under Heterogeneous Outside Opportunities," Information Systems Research, INFORMS, vol. 18(2), pages 150-172, June.
    16. Hinz, Oliver & Hann, Il-Horn & Spann, Martin, 2011. "Price Discrimination in E-Commerce? An Examination of Dynamic Pricing in Name-Your-Own-Price Markets Management Information Systems Quarterly (MISQ)," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 56546, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    17. Sidney G. Winter & Gabriel Szulanski, 2001. "Replication as Strategy," Organization Science, INFORMS, vol. 12(6), pages 730-743, December.
    18. Michael J. Shaw, 1999. "Electronic Commerce: Review of Critical Research Issues," Information Systems Frontiers, Springer, vol. 1(1), pages 95-106, July.
    19. repec:dau:papers:123456789/7127 is not listed on IDEAS
    20. Hans Lehmann, 2001. "Using Grounded Theory with Technology Cases: Distilling Critical Theory from a Multinational Information Systems Development Project," Journal of Global Information Technology Management, Taylor & Francis Journals, vol. 4(1), pages 45-60, January.
    21. Krishnan Ramayya & Smith Michael D. & Tang Zhulei & Telang Rahul, 2007. "Digital Business Models for Peer-to-Peer Networks: Analysis and Economic Issue," Review of Network Economics, De Gruyter, vol. 6(2), pages 1-20, June.
    22. Marc Bourreau & Michel Gensollen & François Moreau, 2012. "The Impact of a Radical Innovation on Business Models: Incremental Adjustments or Big Bang?," Industry and Innovation, Taylor & Francis Journals, vol. 19(5), pages 415-435, July.
    23. Rajiv Kishore & Ephraim R. McLean, 2002. "The Next Generation Enterprise: A CIO Perspective on the Vision, its Impacts, and Implementation Challenges," Information Systems Frontiers, Springer, vol. 4(1), pages 121-138, April.
    24. Xiaorui Hu & Zhangxi Lin & Andrew B. Whinston & Han Zhang, 2004. "Hope or Hype: On the Viability of Escrow Services as Trusted Third Parties in Online Auction Environments," Information Systems Research, INFORMS, vol. 15(3), pages 236-249, September.
    25. Sam Solaimani & Harry Bouwman & Timo Itälä, 2015. "Networked enterprise business model alignment: A case study on smart living," Information Systems Frontiers, Springer, vol. 17(4), pages 871-887, August.
    26. Sanjukta Das & Anna Ye Du & Ram Gopal & R. Ramesh, 2011. "Risk Management and Optimal Pricing in Online Storage Grids," Information Systems Research, INFORMS, vol. 22(4), pages 756-773, December.
    27. Brousseau Eric & Penard Thierry, 2007. "The Economics of Digital Business Models: A Framework for Analyzing the Economics of Platforms," Review of Network Economics, De Gruyter, vol. 6(2), pages 1-34, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Efpraxia D. Zamani & Nancy Pouloudi & George Giaglis & Jonathan Wareham, 2021. "Accommodating Practices During Episodes of Disillusionment with Mobile IT," Information Systems Frontiers, Springer, vol. 23(2), pages 453-475, April.
    2. Liliya Satalkina & Gerald Steiner, 2020. "Digital Entrepreneurship and its Role in Innovation Systems: A Systematic Literature Review as a Basis for Future Research Avenues for Sustainable Transitions," Sustainability, MDPI, vol. 12(7), pages 1-27, April.
    3. Reema Aswani & Arpan Kumar Kar & P. Vigneswara Ilavarasan, 2018. "Detection of Spammers in Twitter marketing: A Hybrid Approach Using Social Media Analytics and Bio Inspired Computing," Information Systems Frontiers, Springer, vol. 20(3), pages 515-530, June.
    4. Xiong Zhang & Xin Zhang & Xuechen Luo & Wei T. Yue, 2022. "The Impact of Revenue Models on Anti-Counterfeiting Measures for Online Intermediaries," Information Systems Frontiers, Springer, vol. 24(6), pages 1905-1928, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michaela Sprenger & Tobias Mettler & Robert Winter, 0. "A viability theory for digital businesses: Exploring the evolutionary changes of revenue mechanisms to support managerial decisions," Information Systems Frontiers, Springer, vol. 0, pages 1-24.
    2. Ancillai, Chiara & Sabatini, Andrea & Gatti, Marco & Perna, Andrea, 2023. "Digital technology and business model innovation: A systematic literature review and future research agenda," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    3. Arash Rezazadeh & Ana Carvalho, 2018. "A value-based approach to business model innovation: Defining the elements of the concept," NIPE Working Papers 12/2018, NIPE - Universidade do Minho.
    4. Charlotte Krychowski & Bertrand Quelin & Bulat Sanditov, 2017. "Experimenting business models with network effects : a real options perspective," Post-Print hal-01582498, HAL.
    5. Edurne A. Inigo & Laura Albareda & Paavo Ritala, 2017. "Business model innovation for sustainability: exploring evolutionary and radical approaches through dynamic capabilities," Industry and Innovation, Taylor & Francis Journals, vol. 24(5), pages 515-542, July.
    6. Engwall, Mats & Kaulio, Matti & Karakaya, Emrah & Miterev, Maxim & Berlin, Daniel, 2021. "Experimental networks for business model innovation: A way for incumbents to navigate sustainability transitions?," Technovation, Elsevier, vol. 108(C).
    7. Gamble, Jordan Robert & Brennan, Michael & McAdam, Rodney, 2017. "A rewarding experience? Exploring how crowdfunding is affecting music industry business models," Journal of Business Research, Elsevier, vol. 70(C), pages 25-36.
    8. Anna-Greta Nyström & Miia Mustonen, 2017. "The dynamic approach to business models," AMS Review, Springer;Academy of Marketing Science, vol. 7(3), pages 123-137, December.
    9. Sarel Gronum & John Steen & Martie-Louise Verreynne, 2016. "Business model design and innovation: Unlocking the performance benefits of innovation," Australian Journal of Management, Australian School of Business, vol. 41(3), pages 585-605, August.
    10. Charlotte Krychowski & Bertrand Quelin & Bulat Sanditov, 2017. "Experimenting business models with network effects : a real options perspective," Grenoble Ecole de Management (Post-Print) hal-01582498, HAL.
    11. Marko Peric & Jelena Durkin & Vanja Vitezic, 2017. "The Constructs of a Business Model Redefined: A Half-Century Journey," SAGE Open, , vol. 7(3), pages 21582440177, September.
    12. Arturo Orea Rocha & Carmelo García Pérez & Fernando Crecente Romero & Maria Teresa del Val Núñez, 2018. "The Business Model and its Core Elements. Proposal of Definition and Table of Core Elements," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 12(4), December.
    13. Harry Bouwman & Mark Reuver & Marikka Heikkilä & Erwin Fielt, 2020. "Business model tooling: where research and practice meet," Electronic Markets, Springer;IIM University of St. Gallen, vol. 30(3), pages 413-419, September.
    14. Ales Novak, 2014. "Business Model Literature Overview," FINANCIAL REPORTING, FrancoAngeli Editore, vol. 2014(1), pages 79-130.
    15. Battistella, Cinzia & De Toni, Alberto F. & De Zan, Giovanni & Pessot, Elena, 2017. "Cultivating business model agility through focused capabilities: A multiple case study," Journal of Business Research, Elsevier, vol. 73(C), pages 65-82.
    16. Hossein Mahdavimazdeh & Loren Falkenberg & Madelynn Stackhouse, 2019. "The Innovation Value Canvas: A Guide To Defining Value Propositions And Target Customers For Commercialization Of Technological Innovations," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 24(02), pages 1-29, February.
    17. Mara Del Baldo & Maria-Gabriella Baldarelli, 2017. "Renewing and improving the business model toward sustainability in theory and practice," International Journal of Corporate Social Responsibility, Springer, vol. 2(1), pages 1-13, December.
    18. Cinzia Battistella & Gianluca Murgia & Fabio Nonino, 2021. "Free-driven web-based business models," Electronic Commerce Research, Springer, vol. 21(2), pages 445-486, June.
    19. Amandine Maus & Sylvie Sammut, 2018. "Business model innovation in incubators: the role played by dynamic capabilities theory," Post-Print hal-02466175, HAL.
    20. Martin Spann & Oliver Hinz & Vandana Ramachandran, 2013. "Business and Information Systems Engineering and Marketing," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 5(3), pages 127-128, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:infosf:v:19:y:2017:i:4:d:10.1007_s10796-016-9638-x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.