A Viability Theory for Digital Businesses: Exploring the Evolutionary Changes of Revenue Mechanisms to Support Managerial Decisions

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.