Examining Underrepresented Communities’ Intention Towards Digital Entrepreneurship: A Dual-Theory Framework

2023 | Americas Conference on Information Systems | Citations: 0

Authors: David, Dessa; Zu, Xingxing

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Topics: digital entrepreneurship IT career digital business entrepreneurship electronic business

Methods: survey design survey conceptual modelling

Theories: technology acceptance model theory of planned behavior

When Stablecoin is No Longer Stable - A Case Study on the Failure of TerraUSD

2023 | International Conference on Information Systems | Citations: 0

Authors: Nurbaev, Vladimir; Au, Cheuk Hang; Chou, Chih-Yuan

Abstract: Comparing to other price-volatile cryptocurrencies, stablecoins provide a relia ... Expand

Abstract: Comparing to other price-volatile cryptocurrencies, stablecoins provide a reliable way to store value and make transactions, and thus are more suitable for daily-life usage and investment risk control. However, there remains a lack of understanding of how stablecoin can gain success. This may lead to the introduction of stablecoins based on uninformed proposals, which may eventually fail. In turn, owners of these stablecoins may suffer from significant financial losses. Using theories of Information Systems and digital startups failures as the theoretical foundation, our study identified four underlying factors (lack of scarcity, lack of fiat reserve backup, decentralization, and failure of value creation) and two triggers (massive selling by major investors and algorithm malfunction) behind the collapse of a stablecoin, based on the case of TerraUSD's collapse. Our findings provide implications for stablecoins issuers to prioritize maintenance and foster user adoption, thus increasing the likelihood of success of stablecoins. Collapse

Topics: stablecoin value creation backup digital entrepreneurship social media

Methods: qualitative coding case study field study netnography business process modeling

On the Potential of Business Process Management for Digital Entrepreneurship: Findings from a Literature Review

2023 | International Conference on Information Systems | Citations: 0

Authors: Wuttke, Tobias; Haskamp, Thomas; Perscheid, Michael; Uebernickel, Falk

Abstract: Digital ventures face significant organizational challenges when scaling, inclu ... Expand

Abstract: Digital ventures face significant organizational challenges when scaling, including increasing sales and employee numbers, that withdraw resources from working on their market offerings. While digital entrepreneurship literature stresses the importance of creating processes that balance structure and flexibility to deal with these challenges, business process management (BPM) literature focuses on improving pre-designed business processes. We reconcile these perspectives in a structured literature review to explore how BPM can support digital venturing. We identify synergies and tensions between BPM and digital entrepreneurship and propose three avenues for future research. These include exploring ambidextrous BPM in digital ventures, treating digital venturing as a business process, and developing capabilities for balancing flexibility and structure. We contribute to information systems research by critically reviewing the literature on BPM and digital entrepreneurship and providing potential areas for future investigation. Collapse

Topics: digital entrepreneurship business process management entrepreneurship database system task productivity

Methods: literature sample literature study structured literature research survey qualitative interview

Theories: dynamic capabilities theory dominant logic

Mitigating information asymmetry to acquire venture capital financing for digital startups in China: The role of weak and strong signals

2023 | Information Systems Journal | Citations: 1

Authors: Yang, Yuxue; Fang, Yulin; Wang, Nianxin; Su, Xiang

Abstract: This paper addresses how weak and strong signals affect venture capital funding ... Expand

Abstract: This paper addresses how weak and strong signals affect venture capital funding acquired by digital startups at their early stage in various industries of China. We also articulate the interaction mechanism of these strong and weak signals by demonstrating their complementary or substitutive effects in alleviating information asymmetry on startup quality, which can help digital startups secure venture capital financing. Drawing on signalling theory and institutional legitimacy theory, we introduce application (app) downloads as a novel strong signal that can reduce market legitimacy concerns, and previous-round venture capitalist reputation as a traditional strong signal that mitigates regulatory legitimacy concerns. We treat founders' startup and IT experience as weak signals, as they provide rhetorical and indirect information indicating a startup's potential to establish regulatory and market legitimacy. The study empirically investigates our hypotheses using data of 163 digital startups in various industries of China. Results confirm the positive relationships between strong signals and venture capital funding secured by a digital startup. Furthermore, signals of similar strength are found to complement each other's effects in certain situations, while strong signals can reduce the effects of weak signals on a digital startup's financing performance under specific conditions that create these mixed effects. Implications for digital startup research and practice as well as limitations and suggestions for future research are discussed. Collapse

Topics: digital entrepreneurship mobile application decision making business model database system

Methods: descriptive statistic theory development robustness check multiple regression statistical hypothesis test

Theories: lemon market theory signaling theory theory of bounded rationality

The Role of Environmental Factors for the Success of Digital Start-ups

2022 | European Conference On Information Systems | Citations: 0

Authors: Eggert, Mathias; Chwallek, Constanze; Wollf, Frederik

Abstract: Digital start-ups are perceived as an engine for innovation and job promotor. W ... Expand

Abstract: Digital start-ups are perceived as an engine for innovation and job promotor. While success factors for non-IT start-ups have already been extensively researched, this study sheds light on digital entrepreneurs, whose business model relies primarily on services based on digital technologies. Applying the Grounded Theory method, we identify relevant environmental success factors for digital entrepreneurs. The study's research contribution is threefold. First, we provide 16 relevant and less relevant environmental success factors, which enables a comparison with prior identified factors. We found out that several prior environmental success factors, such as accessibility to transportation or the availability of land and facilities are less relevant for a digital entrepreneur. Second, we derive and discuss hypotheses for the influence of these factors on digital start-up success. Third, we present a theoretical model that lays the foundation for explaining the environmental influence on digital entrepreneurship success. Collapse

Topics: digital entrepreneurship value creation legal context business model innovation management

Methods: qualitative interview theory development qualitative coding grounded theory personal interview

AI meets Digital: A Critical Review on Artificial Intelligence in Digital Entrepreneurship

2022 | European Conference On Information Systems | Citations: 0

Authors: Gerling, Christoph; Meier, Philip; Koehler, Charlotte

Abstract: Driven by a reduction in the cost of data generation and computing power and si ... Expand

Abstract: Driven by a reduction in the cost of data generation and computing power and simultaneous advancement of mathematical methods, algorithms are becoming increasingly capable of mimicking human learning, profound judgment, and decision-making, even outperforming humans in doing so. This recent emergence of artificial intelligence (AI) seems to not only change the way how entrepreneurial endeavors operate but also the way how they emerge. In general, digital technologies are prone to render the processes and outcomes behind entrepreneurial endeavors less bounded and the locus of an entrepreneurial agency less predefined. Addressing the role of AI in this is only nascent so far. We thus suggest it is time to perform a critical review of the literature at the intersection of AI and digital entrepreneurship. Our investigation adopts a socio-technical lens to capture the state of the AI entrepreneurship literature and identify promising research avenues to trigger further discussions. Collapse

Topics: artificial intelligence digital entrepreneurship entrepreneurship database system spreadsheet

Methods: literature sample literature study machine learning structured literature research design artifact

Theories: socio technical theory

The Effects of Digital Technology on Opportunity Recognition

2022 | Business & Information Systems Engineering | Citations: 15

Authors: Kreuzer, Thomas; Lindenthal, Anna-Katharina; Oberländer, Anna Maria; Röglinger, Maximilian

Abstract: Recognizing opportunities enabled by digital technology (DT) has become a compet ... Expand

Abstract: Recognizing opportunities enabled by digital technology (DT) has become a competitive necessity in today’s digital world. However, opportunity recognition is a major challenge given the influence of DT, which not only disperses agency across various actors, but also blurs boundaries between customers, companies, products, and industries. As a result, traditional entrepreneurship knowledge needs to be rethought and the effects of DT on opportunity recognition need to be better understood. Drawing from opportunity recognition theory – as one of the central theories in the entrepreneurship domain – this study builds on a structured literature review to identify and explain three direct as well as three transitive effects of DT on opportunity recognition. These effects have been validated with real-world cases as well as interviews with academics and practitioners. In sum, this study contributes to descriptive and explanatory knowledge on the evolution from traditional to digital entrepreneurship. As a theory for explaining, the findings extend opportunity recognition theory by illuminating how and why DT influences opportunity recognition. This supports research and practice in investigating and managing opportunities more effectively. Collapse

Topics: entrepreneurship innovation management digital innovation knowledge creation digital ecosystem

Methods: qualitative interview qualitative coding theory development literature study structured literature research

The emancipatory potential of digital entrepreneurship: A study of financial technology-driven inclusive growth

2022 | Information & Management | Citations: 0

Authors: Leong, Carmen; Tan, Felix Ter Chian; Tan, Barney; Faisal, Fithra

Abstract: Digital entrepreneurship possesses immense societal implications beyond its comm ... Expand

Abstract: Digital entrepreneurship possesses immense societal implications beyond its commercial significance. Yet our knowledge of the emancipatory potential of digital entrepreneurship remains limited because few studies have gone beyond the conventional emphasis on profits and wealth creation. Drawing on the emancipatory perspective that views entrepreneurship as change creation through the removal of constraints, this article ex­ amines how emancipation can occur through the actions of digital entrepreneurs. Using an empirical investi­ gation of entrepreneurial endeavours set against disadvantaged communities in Indonesia, we uncover constraints facing a developing economy and the role of digital technologies in ameliorating them. Through extensive fieldwork and in-depth case study analyses, we identify constraining societal norms and restrictive practices, as well as the three forms of digital enablement - to emulate services, aggregate capital and equalise opportunities – necessary for the enactment of digitally enabled emancipation. We present a framework to illustrate the enactment of emancipatory digital entrepreneurship for the inclusive development of businesses and communities. Collapse

Topics: digital entrepreneurship entrepreneurship electronic finance innovation management crowdsourcing

Methods: qualitative interview case study qualitative coding literature study field study

Theories: theory of economic growth

Digital Affordances and Digital Capabilities: Evidence from Six AI Startups

2022 | International Conference on Information Systems | Citations: 0

Authors: Li, Ting; Zou, Yi (Zoe); Chan, Yolande

Abstract: Many digital startups fail in their pursuit of niche business value for three r ... Expand

Abstract: Many digital startups fail in their pursuit of niche business value for three reasons: underdeveloped digital affordances, inadequate digital capabilities, and perhaps most importantly, a misalignment between digital affordances and digital capabilities. Digital affordances depict the potential involvement of digital technologies by groups in value creation while digital capabilities represent the ability to leverage and make changes to digital resources to fulfil specific objectives (e.g., affordance actualization). Based on insights derived from a longitudinal in-depth case study of six AI startups, we propose a co-evolution framework that illustrates several iterative loops between digital capabilities and digital affordances. Our analysis also reveals key properties of digital affordances and digital capabilities. Specifically, we find that digital startups with mutually reinforcing digital affordances and digital capabilities are most likely to succeed. We also develop a typology of digital startups using a 2 by 2 affordancecapability matrix. Collapse

Topics: affordance information technology capability artificial intelligence digital entrepreneurship usability

Methods: survey longitudinal research qualitative interview qualitative coding case study

Theories: theory of affordance co-evolution theory

Open Source Collaboration in Digital Entrepreneurship

2022 | Organization Science | Citations: 3

Authors: Lin, Yu-Kai; Maruping, Likoebe M.

Abstract: Emerging digital technologies give rise to digital entrepreneurship and the wide ... Expand

Abstract: Emerging digital technologies give rise to digital entrepreneurship and the widespread phenomenon of open source collaboration (OSC) on GitHub for entrepreneurial pursuits. Although openness is a common theme in digital entrepreneurship, it is unclear how digital startups—that is, startups that that have digital artifacts at the core of their business model for value creation and capture—actually realize value from their OSC engagement. We develop a theoretical framework to explain how the engagement in OSC may affect the value of digital startups and how the effect is contingent on the stage of venture maturity (conception, commercialization, or growth) and the mode of OSC engagement (inbound or outbound). In analyses that pool 17,552 matched digital startups with monthly panel observations between 2008 and 2017, we find digital startups in the conception and commercialization stages benefit more from inbound OSC whereas the ones in the growth stage benefit more from outbound OSC. As digital startups increasingly use OSC for ideation, experimentation, and scaling, our contribution is to show whether, when, and how knowledge flows through OSC might affect the value of digital startups. We discuss implications for research on organizing for digital entrepreneurship as well as open innovation. Collapse

Topics: digital entrepreneurship open innovation innovation management value creation open source

Methods: theory development longitudinal research experimental group descriptive statistic regression analysis method

Theories: organizational theory