IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v193y2023ics0040162523003311.html
   My bibliography  Save this article

An effectuation and causation perspective on the role of design thinking practices and digital capabilities in platform-based ventures

Author

Listed:
  • Kamble, Sachin
  • Rana, Nripendra P.
  • Gupta, Shivam
  • Belhadi, Amine
  • Sharma, Rohit
  • Kulkarni, Praveen

Abstract

The evolution of digital platforms and related ecosystems has led to a new and essential context of entrepreneurship. Previous studies have revealed that although high-tech new ventures possess cutting-edge technology, they face significant challenges because of vital resource constraints and limited management capability. Design thinking practices have emerged as a prominent problem-solving approach offering innovation benefits during high uncertainties. However, in the context of high-tech ventures, more research is needed on linking the relationship between design thinking principles, innovation theories (effectuation and causation), and firm performance. The present study investigates how the design thinking principles influence innovation theories and whether it leads to improved high-tech venture performance. Based on a survey of 291 platform-based start-ups in India, the results show that design thinking ways are well integrated into the theories of effectuation and causation, facilitating the growth of platform-based ventures. However, the influence of effectuation and causation on platform-based venture performance is found to be mediated through the digital capabilities acquired by these ventures.

Suggested Citation

  • Kamble, Sachin & Rana, Nripendra P. & Gupta, Shivam & Belhadi, Amine & Sharma, Rohit & Kulkarni, Praveen, 2023. "An effectuation and causation perspective on the role of design thinking practices and digital capabilities in platform-based ventures," Technological Forecasting and Social Change, Elsevier, vol. 193(C).
    • Handle: RePEc:eee:tefoso:v:193:y:2023:i:c:s0040162523003311
    DOI: 10.1016/j.techfore.2023.122646
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0040162523003311
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techfore.2023.122646?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Harry J. Sapienza & Curtis M. Grimm, 1997. "Founder Characteristics, Start-Up Process, and Strategy/Structure Variables as Predictors of Shortline Railroad Performance," Entrepreneurship Theory and Practice, , vol. 22(1), pages 5-24, October.
    2. Yashar Mansoori & Martin Lackéus, 2020. "Comparing effectuation to discovery-driven planning, prescriptive entrepreneurship, business planning, lean startup, and design thinking," Small Business Economics, Springer, vol. 54(3), pages 791-818, March.
    3. Jessica Alzamora-Ruiz & María Fuentes-Fuentes & Myriam Martinez-Fiestas, 2021. "Together or separately? Direct and synergistic effects of Effectuation and Causation on innovation in technology-based SMEs," International Entrepreneurship and Management Journal, Springer, vol. 17(4), pages 1917-1943, December.
    4. Johan Wiklund & Dean A. Shepherd, 2009. "The Effectiveness of Alliances and Acquisitions: The Role of Resource Combination Activities," Entrepreneurship Theory and Practice, , vol. 33(1), pages 193-212, January.
    5. Youngjin Yoo & Richard J. Boland & Kalle Lyytinen & Ann Majchrzak, 2012. "Organizing for Innovation in the Digitized World," Organization Science, INFORMS, vol. 23(5), pages 1398-1408, October.
    6. Sachin S. Kamble & Angappa Gunasekaran, 2020. "Big data-driven supply chain performance measurement system: a review and framework for implementation," International Journal of Production Research, Taylor & Francis Journals, vol. 58(1), pages 65-86, January.
    7. Satish Nambisan, 2017. "Digital Entrepreneurship: Toward a Digital Technology Perspective of Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 41(6), pages 1029-1055, November.
    8. Dew, Nicholas & Read, Stuart & Sarasvathy, Saras D. & Wiltbank, Robert, 2009. "Effectual versus predictive logics in entrepreneurial decision-making: Differences between experts and novices," Journal of Business Venturing, Elsevier, vol. 24(4), pages 287-309, July.
    9. Robert D. Austin & Lee Devin & Erin E. Sullivan, 2012. "Accidental Innovation: Supporting Valuable Unpredictability in the Creative Process," Organization Science, INFORMS, vol. 23(5), pages 1505-1522, October.
    10. Yao, Qiongrui (Missy) & Baker, LaKami T. & Lohrke, Franz T., 2022. "Building and sustaining trust in remote work by platform-dependent entrepreneurs on digital labor platforms: Toward an integrative framework," Journal of Business Research, Elsevier, vol. 149(C), pages 327-339.
    11. Dushnitsky, Gary & Yu, Lei, 2022. "Why do incumbents fund startups? A study of the antecedents of corporate venture capital in China," Research Policy, Elsevier, vol. 51(3).
    12. Nambisan, Satish & Baron, Robert A., 2021. "On the costs of digital entrepreneurship: Role conflict, stress, and venture performance in digital platform-based ecosystems," Journal of Business Research, Elsevier, vol. 125(C), pages 520-532.
    13. Hsu, David H., 2007. "Experienced entrepreneurial founders, organizational capital, and venture capital funding," Research Policy, Elsevier, vol. 36(5), pages 722-741, June.
    14. Voon Chin Phua, 2019. "Perceiving Airbnb as sharing economy: the issue of trust in using Airbnb," Current Issues in Tourism, Taylor & Francis Journals, vol. 22(17), pages 2051-2055, October.
    15. Morgan, Todd & Obal, Michael & Anokhin, Sergey, 2018. "Customer participation and new product performance: Towards the understanding of the mechanisms and key contingencies," Research Policy, Elsevier, vol. 47(2), pages 498-510.
    16. Christina Matz Carnes & R. Duane Ireland, 2013. "Familiness and Innovation: Resource Bundling as the Missing Link," Entrepreneurship Theory and Practice, , vol. 37(6), pages 1399-1419, November.
    17. Shaker A. Zahra & Donald O. Neubaum & Galal M. El–Hagrassey, 2002. "Competitive Analysis and New Venture Performance: Understanding the Impact of Strategic Uncertainty and Venture Origin," Entrepreneurship Theory and Practice, , vol. 27(1), pages 1-28, January.
    18. Mengzhou Zhuang & Eric (Er) Fang & Jongkuk Lee & Xiaoling Li, 2021. "The Effects of Price Rank on Clicks and Conversions in Product List Advertising on Online Retail Platforms," Information Systems Research, INFORMS, vol. 32(4), pages 1412-1430, December.
    19. Shaker Zahra, 2012. "Organizational learning and entrepreneurship in family firms: exploring the moderating effect of ownership and cohesion," Small Business Economics, Springer, vol. 38(1), pages 51-65, January.
    20. Webb, Justin W. & Bruton, Garry D. & Tihanyi, Laszlo & Ireland, R. Duane, 2013. "Research on entrepreneurship in the informal economy: Framing a research agenda," Journal of Business Venturing, Elsevier, vol. 28(5), pages 598-614.
    21. Jamal Shamsie & Michael J. Mannor, 2013. "Looking Inside the Dream Team: Probing Into the Contributions of Tacit Knowledge as an Organizational Resource," Organization Science, INFORMS, vol. 24(2), pages 513-529, April.
    22. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    23. Yasemin Y. Kor & Joseph T. Mahoney, 2005. "How dynamics, management, and governance of resource deployments influence firm‐level performance," Strategic Management Journal, Wiley Blackwell, vol. 26(5), pages 489-496, May.
    24. Rosca, Eugenia & Agarwal, Nivedita & Brem, Alexander, 2020. "Women entrepreneurs as agents of change: A comparative analysis of social entrepreneurship processes in emerging markets," Technological Forecasting and Social Change, Elsevier, vol. 157(C).
    25. Welter, Christopher & Kim, Sungho, 2018. "Effectuation under risk and uncertainty: A simulation model," Journal of Business Venturing, Elsevier, vol. 33(1), pages 100-116.
    26. Sutherland, Will & Jarrahi, Mohammad Hossein, 2018. "The sharing economy and digital platforms: A review and research agenda," International Journal of Information Management, Elsevier, vol. 43(C), pages 328-341.
    27. Brice Dattée & Oliver Alexy & Erkko Autio, 2018. "Maneuvering in Poor Visibility : How Firms Play the Ecosystem Game when Uncertainty is High," Post-Print hal-02312003, HAL.
    28. Haarhaus, Tim & Liening, Andreas, 2020. "Building dynamic capabilities to cope with environmental uncertainty: The role of strategic foresight," Technological Forecasting and Social Change, Elsevier, vol. 155(C).
    29. Wolfert, Sjaak & Ge, Lan & Verdouw, Cor & Bogaardt, Marc-Jeroen, 2017. "Big Data in Smart Farming – A review," Agricultural Systems, Elsevier, vol. 153(C), pages 69-80.
    30. Chandler, Gaylen N. & DeTienne, Dawn R. & McKelvie, Alexander & Mumford, Troy V., 2011. "Causation and effectuation processes: A validation study," Journal of Business Venturing, Elsevier, vol. 26(3), pages 375-390, May.
    31. Haemin Dennis Park & Daniel Tzabbar, 2016. "Venture Capital, CEOs’ Sources of Power, and Innovation Novelty at Different Life Stages of a New Venture," Organization Science, INFORMS, vol. 27(2), pages 336-353, April.
    32. Dalenogare, Lucas Santos & Benitez, Guilherme Brittes & Ayala, Néstor Fabián & Frank, Alejandro Germán, 2018. "The expected contribution of Industry 4.0 technologies for industrial performance," International Journal of Production Economics, Elsevier, vol. 204(C), pages 383-394.
    33. Te Yang & Karen D. Hughes & Wenhong Zhao, 2021. "Resource combination activities and new venture growth: Exploring the role of effectuation, causation, and entrepreneurs’ gender," Journal of Small Business Management, Taylor & Francis Journals, vol. 59(S1), pages 73-101, August.
    34. Anastasiia Laskovaia & Louis Marino & Galina Shirokova & William Wales, 2019. "Expect the unexpected: examining the shaping role of entrepreneurial orientation on causal and effectual decision-making logic during economic crisis," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 31(5-6), pages 456-475, May.
    35. Gry Agnete Alsos & Tommy Høyvarde Clausen & René Mauer & Stuart Read & Saras D. Sarasvathy, 2020. "Effectual exchange: from entrepreneurship to the disciplines and beyond," Small Business Economics, Springer, vol. 54(3), pages 605-619, March.
    36. Jenny María Ruiz-Jiménez & Matilde Ruiz-Arroyo & María Mar Fuentes-Fuentes, 2021. "The impact of effectuation, causation, and resources on new venture performance: novice versus expert entrepreneurs," Small Business Economics, Springer, vol. 57(4), pages 1761-1781, December.
    37. Brice Dattée & Oliver Alexy & Erkko Autio, 2018. "Maneuvering in Poor Visibility : How Firms Play the Ecosystem Game when Uncertainty is High," Post-Print hal-02276702, HAL.
    38. Tobias Frese & Ingmar Geiger & Florian Dost, 2020. "An empirical investigation of determinants of effectual and causal decision logics in online and high-tech start-up firms," Small Business Economics, Springer, vol. 54(3), pages 641-664, March.
    39. Fei Long & Kinshuk Jerath & Miklos Sarvary, 2022. "Designing an Online Retail Marketplace: Leveraging Information from Sponsored Advertising," Marketing Science, INFORMS, vol. 41(1), pages 115-138, January.
    40. Shaker A. Zahra & Harry J. Sapienza & Per Davidsson, 2006. "Entrepreneurship and Dynamic Capabilities: A Review, Model and Research Agenda," Journal of Management Studies, Wiley Blackwell, vol. 43(4), pages 917-955, June.
    41. Kamble, Sachin S. & Gunasekaran, Angappa & Gawankar, Shradha A., 2020. "Achieving sustainable performance in a data-driven agriculture supply chain: A review for research and applications," International Journal of Production Economics, Elsevier, vol. 219(C), pages 179-194.
    42. Kapoor, Kawaljeet & Ziaee Bigdeli, Ali & Dwivedi, Yogesh K. & Schroeder, Andreas & Beltagui, Ahmad & Baines, Tim, 2021. "A socio-technical view of platform ecosystems: Systematic review and research agenda," Journal of Business Research, Elsevier, vol. 128(C), pages 94-108.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lorena Espina-Romero & Doile Ríos Parra & José Gregorio Noroño-Sánchez & Gloria Rojas-Cangahuala & Luz Emerita Cervera Cajo & Pedro Alfonso Velásquez-Tapullima, 2024. "Navigating Digital Transformation: Current Trends in Digital Competencies for Open Innovation in Organizations," Sustainability, MDPI, vol. 16(5), pages 1-19, March.
    2. Cherbib, Jihene, 2024. "Exploring the interplay between entrepreneurial orientation, causation and effectuation under unexpected covid-19 uncertainty: Insights from large French banks," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    3. Oliveira, Mariana & Zancul, Eduardo & Salerno, Mario Sergio, 2024. "Capability building for digital transformation through design thinking," Technological Forecasting and Social Change, Elsevier, vol. 198(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jenny María Ruiz-Jiménez & Matilde Ruiz-Arroyo & María Mar Fuentes-Fuentes, 2021. "The impact of effectuation, causation, and resources on new venture performance: novice versus expert entrepreneurs," Small Business Economics, Springer, vol. 57(4), pages 1761-1781, December.
    2. Margot Racat & Antonin Ricard & René Mauer, 2024. "Effectuation and causation models: an integrative theoretical framework," Small Business Economics, Springer, vol. 62(3), pages 879-893, March.
    3. Cherbib, Jihene, 2024. "Exploring the interplay between entrepreneurial orientation, causation and effectuation under unexpected covid-19 uncertainty: Insights from large French banks," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    4. Hou, Hong & Shi, Yongjiang, 2021. "Ecosystem-as-structure and ecosystem-as-coevolution: A constructive examination," Technovation, Elsevier, vol. 100(C).
    5. Tobias Riasanow & Lea Jäntgen & Sebastian Hermes & Markus Böhm & Helmut Krcmar, 2021. "Core, intertwined, and ecosystem-specific clusters in platform ecosystems: analyzing similarities in the digital transformation of the automotive, blockchain, financial, insurance and IIoT industry," Electronic Markets, Springer;IIM University of St. Gallen, vol. 31(1), pages 89-104, March.
    6. Frank W. Geels & Jonatan Pinkse & Dimitri Zenghelis, 2021. "Productivity opportunities and risks in a transformative,low-carbon and digital age," Working Papers 009, The Productivity Institute.
    7. Deligianni, Ioanna, 2023. "Revisiting the relationship between product and international diversification in new ventures: The moderating effect of effectuation processes," International Business Review, Elsevier, vol. 32(1).
    8. Khurana, Indu & Dutta, Dev K. & Singh Ghura, Amarpreet, 2022. "SMEs and digital transformation during a crisis: The emergence of resilience as a second-order dynamic capability in an entrepreneurial ecosystem," Journal of Business Research, Elsevier, vol. 150(C), pages 623-641.
    9. Jan Frederic Nerbel & Markus Kreutzer, 2023. "Digital platform ecosystems in flux: From proprietary digital platforms to wide-spanning ecosystems," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-20, December.
    10. Muhammad Farooq Islam & Ozge Can, 2024. "Integrating digital and sustainable entrepreneurship through business models: a bibliometric analysis," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 14(1), pages 1-18, December.
    11. Gomes, Leonardo Augusto de Vasconcelos & Facin, Ana Lucia Figueiredo & Salerno, Mario Sergio, 2021. "Managing uncertainty propagation in innovation ecosystems," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    12. Li, Lei & Lin, Jiabao & Ouyang, Ye & Luo, Xin (Robert), 2022. "Evaluating the impact of big data analytics usage on the decision-making quality of organizations," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    13. Uzunca, Bilgehan & Sharapov, Dmitry & Tee, Richard, 2022. "Governance rigidity, industry evolution, and value capture in platform ecosystems," Research Policy, Elsevier, vol. 51(7).
    14. Richard Arend, 2013. "Ethics-focused dynamic capabilities: a small business perspective," Small Business Economics, Springer, vol. 41(1), pages 1-24, June.
    15. Gomes, Leonardo Augusto de Vasconcelos & Flechas, Ximena Alejandra & Facin, Ana Lucia Figueiredo & Borini, Felipe Mendes, 2021. "Ecosystem management: Past achievements and future promises," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    16. Patrycja Klimas & Wojciech Czakon, 2022. "Species in the wild: a typology of innovation ecosystems," Review of Managerial Science, Springer, vol. 16(1), pages 249-282, January.
    17. Vanessa Weimann & Maike Gerken & Marcel Hülsbeck, 2020. "Business model innovation in family firms: dynamic capabilities and the moderating role of socioemotional wealth," Journal of Business Economics, Springer, vol. 90(3), pages 369-399, April.
    18. Shaheer, Noman & Kim, Kijong & Li, Sali, 2022. "Internationalization of Digital Innovations: A Rapidly Evolving Research Stream," Journal of International Management, Elsevier, vol. 28(4).
    19. Amirmahmood Amini Sedeh & Rosa Caiazza & Amir Pezeshkan, 2023. "Unraveling the resource puzzle: exploring entrepreneurial resource management and the quest for new venture success," The Journal of Technology Transfer, Springer, vol. 48(5), pages 1552-1573, October.
    20. Boons, Mark & Stam, Daan, 2019. "Crowdsourcing for innovation: How related and unrelated perspectives interact to increase creative performance," Research Policy, Elsevier, vol. 48(7), pages 1758-1770.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:tefoso:v:193:y:2023:i:c:s0040162523003311. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.sciencedirect.com/science/journal/00401625 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.