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Vol. 12 No. 1 (2024)
March 2024

Articles

Enhancing resilience in digital multi-sided platform start-ups: An exploration of entrepreneurial logic and open innovation strategies

https://doi.org/10.15678/EBER.2023.120103

Published 2024-03-30

  • Ruslan Prijadi
    • ,
  • Adhi Setyo Santoso
    • ,
  • Tengku Ezni Balqiah
    • ,
  • Hongjoo Jung
    • ,
  • Putri Mega Desiana
    • ,
  • Permata Wulandari

Ruslan Prijadi
Universitas Indonesia

Adhi Setyo Santoso
President University

Tengku Ezni Balqiah
Universitas Indonesia

Hongjoo Jung
Sung Kyun Kwan University

Putri Mega Desiana
Universitas Indonesia

Permata Wulandari
Universitas Indonesia

Abstract

Objective: The article aims to examine the strategic fit between two distinguishable types of entrepreneurial logic (effectuation and causation) and different types of innovation approaches (radical and innovative).

Research Design & Methods: We employed a self-administered questionnaire-based quantitative study and the partial least squares structural equation modelling (PLS-SEM) to test the hypothesis. The sample comprises 70 Indonesian digital multi-sided platform (MSP) start-ups that have been operating for at least three years.

Findings: The empirical results suggest that effectuation can contribute to digital MSP start-ups’ resilience after they succeed in providing radical innovation. On the other hand, causation directly contributes to their resilience. Meanwhile, incremental innovation does not contribute to digital MSP start-ups’ resilience.

Implications & Recommendations: The empirical results suggest that effectuation can contribute to the resilience of digital MSP start-ups after they succeed in providing radical innovation. On the other hand, causation directly contributes to their resilience. Meanwhile, incremental innovation does not contribute significantly to the resilience of digital MSP start-ups.

Contribution & Value Added: This study explores how the entrepreneurial logic in digital MSP start-up models can improve the survival rates of emerging market start-ups. It focuses on Indonesia, where the survival rate is comparatively lower than in other Asian countries. Moreover, this research is crucial for comprehending the phenomenon underlying the resource-based theory paradox, because it involves implementing innovation strategies within the constraints of limited initial resources and capabilities.

       

Keywords

effectuation, radical innovation , incremental innovation, resilience , multi-sided platform

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Author Biography

Ruslan Prijadi

Professor at Universitas Indonesia (Indonesia). He obtained his Doctor of Philosophy degree from the University of Wisconsin, Madison, the United States of America. His research focus encompasses corporate finance and strategy, strategic entrepreneurship, and social enterprise.

 

 

Adhi Setyo Santoso

Associate Professor at Faculty of Business, President University (Indonesia). His research interests are innovation management, entrepreneurship, and digital business.

 

Tengku Ezni Balqiah

Associate Professor at the Department of Management, Faculty of Economics and Business, Universitas Indonesia (Indonesia). Her research interests are corporate social responsibility, circular economy, digital marketing strategy, and Islamic marketing.

 

Hongjoo Jung

Professor at Sung Kyun Kwan University (South Korea). He received his Ph.D. from the Wharton School, University of Pennsylvania, the USA. At the moment, he serves as the Asia Pacific Risk Insurance Association’s (APRIA) president. His research interests are small enterprises, risk management, and consumer protection in the financial sector.

Putri Mega Desiana

Assistant Professor at the Department of Management, Faculty of Economics and Business, Universitas Indonesia (Indonesia). Her research interests focus on managing human resources, organizational behaviour, leadership, and social entrepreneurship.

 

Permata Wulandari

Assistant Professor at the Department of Management, Faculty of Economics and Business, Universitas Indonesia (Indonesia). Her research interests are SMEs, social entrepreneurship, microfinance and Islamic finance.

 

 

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