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

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

Travel Experience on Travel Satisfaction and Loyalty of BRT Public Transportation

Abstract. As the only Bus Rapid Transportation (BRT) system public transportation in Jakarta, Indonesia, travel experience factors were important factor to enhance travel satisfaction and loyalty among passengers. However, travel experience is still rare to be tested among public transportation especially for BRT System Company. This study aims to test the travel experience factors (EF’s factors) such as individual space, information provision, staff’s skills, social environment, vehicle maintenance, off-board service, ticket line service, safety, and waiting time on travel satisfaction and customer loyalty. To test the hypotheses, this study employs Structural Equation Model-Partial Least Square with SmartPLS Version 3.0 among 294 passengers. The results shows that individual space, staff’s skills, vehicle maintenance, ticket line service are positively effect on travel satisfaction, then the travel satisfaction has positive influence on customer loyalty. Hence, social environment, off-board service, safety and waiting time have no influence on travel experience. The current findings suggest the government, and management of BRT to maintain the vehicle condition, improve the ticketing service use online system, recruit higher quality drivers, adding more staffs on-board, manage the schedule of buses, and adapt modern system of location. The society must also be educated to create conducive conditions during the travel trip.Keywords:  BRT System Company; Customer loyalty, Partial Least Square, travel satisfaction, travel experienc

Effectuation in digital multi-sided platform startups: An entrepreneurial journey through open innovation process

A paradox arises in platform-based open innovation, wherein digital Multi-Sided Platform (MSP) firms with little initial co-creation ability can successfully adopt an open innovation strategy that typically requires a high level of co-creation capacity. This study aims to fill this gap by theoretically exploring the connection between effectuation, which involves entrepreneurial action based on a given set of means and the selection of possible effects, and the open innovation process with co-creation capacity. The objective is to contribute to the significant growth of digital MSP startups. This study investigates the process of open innovation based on platforms in the context of resource constraints, limited knowledge, and uncertainty. The outcomes of a quantitative study including 70 digital MSP startups indicate that the most efficient route for these businesses to achieve Innovation Performance is by first developing Effectuation, followed by Integrative Capabilities and Co-Creation Capacity, and last, Innovation Performance. However, in this shortest path, the involvement of Crowds or Communities Management Practices plays a role in partially moderating the relationship between Effectuation and Integrative Capabilities. Platform-based innovation serves as the point of integration between effectuation theory in entrepreneurship research and open innovation strategy in strategic management research. The bridge connecting these two fields has significant implications for research on platform-based innovation in the field of strategic entrepreneurship

Maximizing Strategic Alliances in the Multi-Sided Platform Firms

The growth of multi-sided platform (MSP) firms, especially those with high Internet utilization such as Uber, Tokopedia, Go-Jek as well as other sharing economy firms, started to catch the attention of strategic management scholars. Since multi-sided platforms have more than one distinct user side with various role in the business ecosystem, the strategic alliances between the MSP and its platform members may play a significant role in increasing the user base as well as the value of the platform itself. However, there are still few researches that discuss the strategic alliances within the MSP. For this reason, this conceptual article aims at mapping the strategic alliances literature relevant to the MSP context through in-depth literature review. Two case analyses from high growth MSP firms in Indonesia are presented to explain this phenomenon

Investment decision in crisis: The alternative view of escalation of commitment in determining investment performance

AbstractThis research attempts to apply Image Theory to examine whether the tendency to continue the initial strategy or maintain the status quo known as escalation of commitment (EoC) from institutional investors leads to positive investment performance in unstable real environmental conditions with certain changing trends. In the equity market, investors are always faced with the option of maintaining their existing portfolio (initial strategy) or modifying it (generate emergent strategy) to increase assets as the goal. However, they have a tendency to EoC. Based on this situation, the authors conduct a quantitative study with covariance-based structural equation models (CB-SEM) approach one of the fund management industry in the Indonesian equity market during bearish conditions in the midst of the 2008 global economic crisis and bullish conditions during the crisis recovery as the background. This study shows that EoC is not always associated with more negative performance because it can result in more positive performance in high image compatibility state

Bridging Perspectives of Customer Value Proposition and Customer Perceived Value of Intercity Non-Bus Transportation Service in Indonesia

Research Aims: The study aim is to explore value proposition creation from the perspectives of non-bus transportation services and to investigate the factors in customer perceived value, especially functional value (operations, facilities, professionalism, and price), that influence purchase intention from customers' perspectives. Design/methodology/approach: This mixed methods study used personal interviews, participant observation, and a survey to collect the data. Then, we conducted exploratory case study by using organisational level logic model as a qualitative analysis technique. Finally, we used regression for hypothesis testing of the quantitative section. Research Findings: The results indicated that non-bs transportation services should give extra efforts to build great value propositions to meet customer needs. The interview and participant observation results on non-bus transportation service providers' perspectives showed that that two providers studied have different strategies to create strong value propositions. The survey results on customers' perspectives showed that all aspects of functional value (operations, facilities, professionalism, and price) significantly influence purchase intention. Thus, those two perspectives do not completely align. Theoretical Contribution/Originality: The integrated framework of customer value proposition created by firms and customer perceived value, which was empirically tested in this study, showed that superior value proposition can be achieved where there is a feedback loop between these two perspectives. Managerial Implications in the Southeast Asian context: Managers have to consider not only the individual aspects of price competitiveness and comfort of services as value propositions but also the integration of facilities and professionalism to build perceived value through value propositions in intercity non-bus transportation services in Southeast Asian contexts. Research limitations and implications: This study had only two variables (functional value and purchase intentions). Functional value had four sub-variables (operations, facilities, professionalism, and price) as independent variables. Other variables could influence purchase intention for non-bus transportation service providers.&nbsp