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

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.