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The subscription business model and new venture viability during a crisis

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  • Zhou, William C.
  • Sun, Sunny Li
  • Jia, Peiyi

Abstract

Integrating insights from the service-dominant logic and the activity system perspective of business models, we explore and analyze three core design rules of the subscription business model: customer-orientation, interfunctional coordination, and digitalization. We find that the adoption of the subscription business model strengthens new venture viability during a crisis. More specifically, the negative impact of the COVID-19 crisis on the performance of subscription-based ventures is less pronounced than other business models in terms of changes in shareholder value, firm risk, and severity of loss. Furthermore, we find that new subscription-based ventures depend less on marketing expenses during a crisis.

Suggested Citation

  • Zhou, William C. & Sun, Sunny Li & Jia, Peiyi, 2025. "The subscription business model and new venture viability during a crisis," Journal of Business Research, Elsevier, vol. 200(C).
    • Handle: RePEc:eee:jbrese:v:200:y:2025:i:c:s0148296325004837
    DOI: 10.1016/j.jbusres.2025.115660
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