TY - GEN
T1 - An empirical study on factors that influence the digital startup sustainability
T2 - 10th International Conference on Advanced Computer Science and Information Systems, ICACSIS 2018
AU - Endrik,
AU - Sucahyo, Yudho Giri
AU - Ruldeviyani, Yova
AU - Gandhi, Arfive
N1 - Funding Information:
This research was supported by Universitas Indonesia under the PITTA Grants 2018 of “Risk Evaluation and Improvement Strategies for Platform-based Startup Business” (No: 1899/UN2.R3.1/HKP.05.00/2018). We would like to express our gratitude to the Faculty of Computer Science and the Directorate of Research and Community Engagement, Universitas Indonesia.
Publisher Copyright:
© 2019 IEEE. All Rights Reserved.
PY - 2019/1/17
Y1 - 2019/1/17
N2 - About 90% of startup implementation in Indonesia failed due to the products and markets incompatibility and the funds that run out. The Agency of Creative Economy targets to reduce failure rate to 70% because startup delivers numerous contributions to boost the digital economy. In order to achieve the target, a holistic understanding of factors that influence startup’s sustainability becomes a fundamental baseline. This research aims to identify and analyze those factors with the mixed method approach. Literature review and expert judgment are combined to provide the conceptual model with 11 hypotheses in 5 dimensions: Finance, Organization, Product, Market, and External Environment. The research found there are 10 factors identified, 1 factor namely Minimum Viable Product (MVP) is the significant factor influencing business sustainability in the digital startup based on the PLS-SEM result. The complete results have been affirmed by the expert judgment as part of triangulation process. By leveraging those factors, startup can perform the necessary strategies to develop their business and avoid the failure.
AB - About 90% of startup implementation in Indonesia failed due to the products and markets incompatibility and the funds that run out. The Agency of Creative Economy targets to reduce failure rate to 70% because startup delivers numerous contributions to boost the digital economy. In order to achieve the target, a holistic understanding of factors that influence startup’s sustainability becomes a fundamental baseline. This research aims to identify and analyze those factors with the mixed method approach. Literature review and expert judgment are combined to provide the conceptual model with 11 hypotheses in 5 dimensions: Finance, Organization, Product, Market, and External Environment. The research found there are 10 factors identified, 1 factor namely Minimum Viable Product (MVP) is the significant factor influencing business sustainability in the digital startup based on the PLS-SEM result. The complete results have been affirmed by the expert judgment as part of triangulation process. By leveraging those factors, startup can perform the necessary strategies to develop their business and avoid the failure.
KW - Digital startup
KW - MVP
KW - Minimum viable product
KW - PLS-SEM
KW - Startup
UR - http://www.scopus.com/inward/record.url?scp=85062399957&partnerID=8YFLogxK
U2 - 10.1109/ICACSIS.2018.8618241
DO - 10.1109/ICACSIS.2018.8618241
M3 - Conference contribution
AN - SCOPUS:85062399957
T3 - 2018 International Conference on Advanced Computer Science and Information Systems, ICACSIS 2018
SP - 119
EP - 124
BT - 2018 International Conference on Advanced Computer Science and Information Systems, ICACSIS 2018
PB - Institute of Electrical and Electronics Engineers Inc.
Y2 - 27 October 2018 through 28 October 2018
ER -