How open innovation strategy and effectuation within platform ecosystem can foster innovation performance: Evidence from digital multi-sided platform startups

Authors

  • Adhi Setyo Santoso President University, Faculty of Business, Jababeka Education Park, Jl. Ki Hajar Dewantara, RT.2/RW.4, Mekarmukti, North Cikarang, Bekasi, West Java 17530, Indonesia & Universitas Indonesia, Graduate School of Management, Jl. Margonda Raya, Pondok Cina, Kecamatan Beji, Kota Depok, Jawa Barat 16424, Indonesia
  • Ruslan Prijadi Universitas Indonesia, Graduate School of Management, Jl. Margonda Raya, Pondok Cina, Kecamatan Beji, Kota Depok, Jawa Barat 16424, Indonesia
  • Tengku Ezni Balqiah Universitas Indonesia, Graduate School of Management, Jl. Margonda Raya, Pondok Cina, Kecamatan Beji, Kota Depok, Jawa Barat 16424, Indonesia

Abstract

This article explores how effectuation approaches – entrepreneurial action that deals with a set of means as given and focuses on selecting between possible effects that can be created with that set of means – contribute to digital Multi-Sided Platform (MSP) startups significant growth. The study integrates effectuation theory with an open innovation strategy within the platform ecosystem to understand the innovation process under resource constraint, limited knowledge, and uncertainty. Our inductive multiple-case study findings from three leading digital MSP startups show how their founding team uses the knowledge, ideas, and resources from external parties within the platform ecosystem, including agents, user communities, and supporting partner firms, along with means from the entrepreneurs’ background, in the beginning to produce high growth innovation outcomes. Platform-based entrepreneurship becomes the integrating point of effectuation theory from entrepreneurship research and open innovation strategy through strategic management research. The bridge for these two areas suggests implications for platform-based entrepreneurship research in strategic entrepreneurship.

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Author Biographies

Adhi Setyo Santoso, President University, Faculty of Business, Jababeka Education Park, Jl. Ki Hajar Dewantara, RT.2/RW.4, Mekarmukti, North Cikarang, Bekasi, West Java 17530, Indonesia & Universitas Indonesia, Graduate School of Management, Jl. Margonda Raya, Pondok Cina, Kecamatan Beji, Kota Depok, Jawa Barat 16424, Indonesia

Adhi Setyo Santoso is the Director of SetSail BizAccel,
the President University Business Accelerator and a Lecturer of the Business
Administration Program at the President University. He has published
extensively in the area of strategic management, management information
system, open innovation, strategic entrepreneurship and digital business. He
also serves as the CEO for PT. Biline Aplikasi Digital, a digital agency firm in
Indonesia. He has been active as a digital strategy consultant for national and
international institutions as well as for major companies in the banking, media,
telecommunications and other service industries. He uses his both academic
and practical background to advise and mentor technology-based startups. He
is currently pursuing his PhD in Strategic Management with a focus on
community-based open innovation at the Universitas Indonesia.

Ruslan Prijadi, Universitas Indonesia, Graduate School of Management, Jl. Margonda Raya, Pondok Cina, Kecamatan Beji, Kota Depok, Jawa Barat 16424, Indonesia

Dr. Ruslan Prijadi is an Associate Professor at Graduate School of Management, Faculty of Economics and Business, Universitas Indonesia

Tengku Ezni Balqiah, Universitas Indonesia, Graduate School of Management, Jl. Margonda Raya, Pondok Cina, Kecamatan Beji, Kota Depok, Jawa Barat 16424, Indonesia

Dr. Tengku Ezni Balqiah is an Associate Professor at Graduate School of Management, Faculty of Economics and Business, Universitas Indonesia

Published

2020-11-19

How to Cite

Santoso, A. S., Prijadi, R., & Balqiah, T. E. (2020). How open innovation strategy and effectuation within platform ecosystem can foster innovation performance: Evidence from digital multi-sided platform startups. Journal of Small Business Strategy, 30(3), 102-126. Retrieved from https://libjournals.mtsu.edu/index.php/jsbs/article/view/1471

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Articles