Abstract
Peer-to-peer or digital multi-sided platform (MSP) startups have created disruptions in various industries in the past few years. In this matter, the crowds within the platform ecosystem have significant contribution for digital MSP startups’ growth. However, there are limited studies that examine the crowd-based resource and capabilities as the source of radical innovation performance since it still conducts the perspective of linear product-market supply and demand. By using network theory, this research proposal wants to examine the role of network effects toward the development of the radical innovation. The findings of PLS-SEM analysis with 70 respondents from digital MSP startups show that crowds-based resources and capabilities manifested by integrative capabilities can generate radical innovation performance through decent network effect that enables to produce high incremental innovation performance beforehand. It shows the importance interaction between digital MSP startups with the crowds for innovation purposes. Hence, the findings contribute in open innovation literatures especially in finding the contributing factors to generate radical innovation
Highlights
In the past few years, there are phenomena about the emerging of digital multi-sided platform (MSP) startups that utilizing the crowd resources
LITERATURE REVIEW In order to understand the theoretical foundation of crowd-based resources and capabilities and search the gap of the previous innovation literatures, we examine the evolution of two developed theory in strategic management area, innovation theory and resource-based theory
In digital MSP startups case, these resources developed from integrative capabilities can produce incremental innovation that focus on existing customer needs as well as radical innovation performance in term of introducing new business model that contribute into digital MSP startups engine growth
Summary
In the past few years, there are phenomena about the emerging of digital multi-sided platform (MSP) startups that utilizing the crowd resources. In digital MSP startups case, these resources developed from integrative capabilities can produce incremental innovation that focus on existing customer needs as well as radical innovation performance in term of introducing new business model that contribute into digital MSP startups engine growth. Those concepts can be formalized into hypothesis 1 as follow: H2: Integrative capabilities has positive Association toward the incremental innovation performance. The encroachment speed of the MSP irms may be in luenced by the interaction of crowd-based resources and potential disruptive business model adoption It leads into both incremental innovation performance and radical innovation performance. Hair et al, (2014) mention that there are certain rules of thumb condition that makes PLS-SEM can be a “Silver Bullet” alternative of Covariance-Based SEM (CB-SEM) when it is dif icult to implement because of the assumption criteria cannot be met
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