IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v146y2019icp945-960.html
   My bibliography  Save this article

Digital startups and the adoption and implementation of Lean Startup Approaches: Effectuation, Bricolage and Opportunity Creation in practice

Author

Listed:
  • Ghezzi, Antonio

Abstract

Digital startups launching original value propositions can test out and validate their business model using a recent and emerging set of practices known as Lean Startup Approaches (LSAs), which consist of Customer Development and the Lean Startup. While LSAs are gaining momentum in the ecosystem surrounding digital startups, they still suffer from poor theoretical foundations and operational issues that hinder their adoption and implementation. The aim of this study is to go beyond recalling anecdotal and single-case examples and, through mixed-methods research involving 227 digital startups, provide a first large-scale analysis of: (i) if and how digital startups apply Lean Startups Approaches; (ii) the ensuing results; (iii) the main advantages and disadvantages that stem from adopting and implementing LSAs; and (iv) how digital startups connect and combine the LSAs with other entrepreneurial approaches and tools for launching startups. The findings reveal that most of the sample has adopted LSAs and obtained several benefits from their use. A list of practical guidelines on how to solve the existing drawbacks and enhance the effectiveness of adopting and implementing LSAs is hence proposed. To conclude, a framework for organizing the empirical findings is put forward, where LSAs are inserted into the entrepreneurship theory debate on Effectuation, Entrepreneurial Bricolage and Opportunity Creation. Suggestions are then provided on how to sequence and bridge effectuation and causation logics and decision-making tools in an “entrepreneurial opportunities space”.

Suggested Citation

  • Ghezzi, Antonio, 2019. "Digital startups and the adoption and implementation of Lean Startup Approaches: Effectuation, Bricolage and Opportunity Creation in practice," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 945-960.
  • Handle: RePEc:eee:tefoso:v:146:y:2019:i:c:p:945-960
    DOI: 10.1016/j.techfore.2018.09.017
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S004016251731778X
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.techfore.2018.09.017?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. Satish Nambisan, 2017. "Digital Entrepreneurship: Toward a Digital Technology Perspective of Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 41(6), pages 1029-1055, November.
    2. Henning Breuer, 2013. "Lean Venturing: Learning To Create New Business Through Exploration, Elaboration, Evaluation, Experimentation, And Evolution," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 17(03), pages 1-22.
    3. Jullien, Bruno, 2000. "Participation Constraints in Adverse Selection Models," Journal of Economic Theory, Elsevier, vol. 93(1), pages 1-47, July.
    4. V. Krishnan & Karl T. Ulrich, 2001. "Product Development Decisions: A Review of the Literature," Management Science, INFORMS, vol. 47(1), pages 1-21, January.
    5. William R. Kerr & Ramana Nanda & Matthew Rhodes-Kropf, 2014. "Entrepreneurship as Experimentation," Journal of Economic Perspectives, American Economic Association, vol. 28(3), pages 25-48, Summer.
    6. Toshiro Kiura & Ockie J. H. Bosch & Nam C. Nguyen & Seiko Shirasaka & Takashi Maeno, 2014. "Creating a New Business Through Applying the Systems‐Based Evolutionary Learning Laboratory Approach," Systems Research and Behavioral Science, Wiley Blackwell, vol. 31(6), pages 696-707, November.
    7. Dennis Lyth Frederiksen & Alexander Brem, 2017. "How do entrepreneurs think they create value? A scientific reflection of Eric Ries’ Lean Startup approach," International Entrepreneurship and Management Journal, Springer, vol. 13(1), pages 169-189, March.
    8. Frédéric Delmar & Scott Shane, 2003. "Does business planning facilitate the development of new ventures?," Strategic Management Journal, Wiley Blackwell, vol. 24(12), pages 1165-1185, December.
    9. Brinckmann, Jan & Grichnik, Dietmar & Kapsa, Diana, 2010. "Should entrepreneurs plan or just storm the castle? A meta-analysis on contextual factors impacting the business planning-performance relationship in small firms," Journal of Business Venturing, Elsevier, vol. 25(1), pages 24-40, January.
    10. Garry Bruton & Susanna Khavul & Donald Siegel & Mike Wright, 2015. "New Financial Alternatives in Seeding Entrepreneurship: Microfinance, Crowdfunding, and Peer–to–Peer Innovations," Entrepreneurship Theory and Practice, , vol. 39(1), pages 9-26, January.
    11. Michael A. Hitt & R. Duane Ireland & S. Michael Camp & Donald L. Sexton, 2001. "Strategic entrepreneurship: entrepreneurial strategies for wealth creation," Strategic Management Journal, Wiley Blackwell, vol. 22(6‐7), pages 479-491, June.
    12. Ghezzi, Antonio & Cortimiglia, Marcelo Nogueira & Frank, Alejandro Germán, 2015. "Strategy and business model design in dynamic telecommunications industries: A study on Italian mobile network operators," Technological Forecasting and Social Change, Elsevier, vol. 90(PA), pages 346-354.
    13. Garry D. Bruton & Igor Filatotchev & Salim Chahine & Mike Wright, 2010. "Governance, ownership structure, and performance of IPO firms: the impact of different types of private equity investors and institutional environments," Strategic Management Journal, Wiley Blackwell, vol. 31(5), pages 491-509, May.
    14. Greg Fisher, 2012. "Effectuation, Causation, and Bricolage: A Behavioral Comparison of Emerging Theories in Entrepreneurship Research," Entrepreneurship Theory and Practice, , vol. 36(5), pages 1019-1051, September.
    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. Weking, Jörg & Desouza, Kevin C. & Fielt, Erwin & Kowalkiewicz, Marek, 2023. "Metaverse-enabled entrepreneurship," Journal of Business Venturing Insights, Elsevier, vol. 19(C).
    2. Xuan, Li, 2022. "Big data-driven fuzzy large-scale group decision making (LSGDM) in circular economy environment," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    3. Faiez Ghorbel & Wafik Hachicha & Younes Boujelbene & Awad M. Aljuaid, 2021. "Linking Entrepreneurial Innovation to Effectual Logic," Sustainability, MDPI, vol. 13(5), pages 1-13, March.
    4. Zaheer, Hasnain & Breyer, Yvonne & Dumay, John, 2019. "Digital entrepreneurship: An interdisciplinary structured literature review and research agenda," Technological Forecasting and Social Change, Elsevier, vol. 148(C).
    5. 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).
    6. Mathiyazhagan, Kaliyan & Agarwal, Vernika & Appolloni, Andrea & Saikouk, Tarik & Gnanavelbabu, A, 2021. "Integrating lean and agile practices for achieving global sustainability goals in Indian manufacturing industries," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    7. Ghezzi, Antonio, 2020. "How Entrepreneurs make sense of Lean Startup Approaches: Business Models as cognitive lenses to generate fast and frugal Heuristics," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    8. Zaheer, Hasnain & Breyer, Yvonne & Dumay, John & Enjeti, Mahesh, 2022. "The entrepreneurial journeys of digital start-up founders," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    9. Morteza Hadizadeh & Javad Ghaffari Feyzabadi & Zahra Fardi & Seyed Morteza Mortazavi & Vitor Braga & Aidin Salamzadeh, 2024. "Digital Platforms as a Fertile Ground for the Economic Sustainability of Startups: Assaying Scenarios, Actions, Plans, and Players," Sustainability, MDPI, vol. 16(16), pages 1-27, August.
    10. Velásquez, Iris María Cantillo & Vargas, Yamile León, 2022. "Tendencias de investigación en los negocios internacionales," Revista Tendencias, Universidad de Narino, vol. 23(2), pages 273-302, July.
    11. Bongsug (Kevin) Chae, 2022. "Mapping the Evolution of Digital Business Research: A Bibliometric Review," Sustainability, MDPI, vol. 14(12), pages 1-13, June.
    12. Ávila-Robinson, Alfonso & Islam, Nazrul & Sengoku, Shintaro, 2022. "Exploring the knowledge base of innovation research: Towards an emerging innovation model," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
    13. Sanasi, Silvia & Ghezzi, Antonio & Cavallo, Angelo, 2023. "What happens after market validation? Experimentation for scaling in technology-based startups," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    14. Silvia Sanasi, 2023. "Entrepreneurial experimentation in business model dynamics: Current understanding and future opportunities," International Entrepreneurship and Management Journal, Springer, vol. 19(2), pages 805-836, June.
    15. Klaudia Bracio & Marek Szarucki, 2020. "Mixed Methods Utilisation in Innovation Management Research: A Systematic Literature Review and Meta-Summary," JRFM, MDPI, vol. 13(11), pages 1-27, October.
    16. Fernandes, Cristina & Ferreira, João J. & Veiga, Pedro Mota & Kraus, Sascha & Dabić, Marina, 2022. "Digital entrepreneurship platforms: Mapping the field and looking towards a holistic approach," Technology in Society, Elsevier, vol. 70(C).
    17. Chengbin, Wang & Hongbin, Wang & Min, Dai & Yongyan, Fang, 2022. "Lean Startup Approaches(LSAs): Convergence, Integration and Improvement," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    18. Zichong Lyu & Dirk Pons & Yilei Zhang & Zuzhen Ji, 2022. "Minimum Viable Model (MVM) Methodology for Integration of Agile Methods into Operational Simulation of Logistics," Logistics, MDPI, vol. 6(2), pages 1-28, June.
    19. Bejjani, Melissa & Göcke, Lutz & Menter, Matthias, 2023. "Digital entrepreneurial ecosystems: A systematic literature review," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    20. Yáñez-Valdés, Claudia & Guerrero, Maribel & Barros-Celume, Sebastián & Ibáñez, María J., 2023. "Winds of change due to global lockdowns: Refreshing digital social entrepreneurship research paradigm," Technological Forecasting and Social Change, Elsevier, vol. 190(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. Ghezzi, Antonio, 2020. "How Entrepreneurs make sense of Lean Startup Approaches: Business Models as cognitive lenses to generate fast and frugal Heuristics," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    2. Onesun Steve Yoo & Tingliang Huang & Kenan Arifoğlu, 2021. "A Theoretical Analysis of the Lean Start-up Method," Marketing Science, INFORMS, vol. 40(3), pages 395-412, May.
    3. Cavallo, Angelo & Ghezzi, Antonio & Dell'Era, Claudio & Pellizzoni, Elena, 2019. "Fostering digital entrepreneurship from startup to scaleup: The role of venture capital funds and angel groups," Technological Forecasting and Social Change, Elsevier, vol. 145(C), pages 24-35.
    4. Lange, Francie & Tomini, Nino & Brinkmann, Florian & Kanbach, Dominik K. & Kraus, Sascha, 2023. "Demystifying massive and rapid business scaling – An explorative study on driving factors in digital start-ups," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    5. Ghezzi, Antonio & Cavallo, Angelo, 2020. "Agile Business Model Innovation in Digital Entrepreneurship: Lean Startup Approaches," Journal of Business Research, Elsevier, vol. 110(C), pages 519-537.
    6. Igor Laine & Tamara Galkina, 0. "The interplay of effectuation and causation in decision making: Russian SMEs under institutional uncertainty," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-37.
    7. Yi Jiang & Charles-Clemens Rüling, 2019. "Opening the Black Box of Effectuation Processes: Characteristics and Dominant Types," Entrepreneurship Theory and Practice, , vol. 43(1), pages 171-202, January.
    8. Ioanna Deligianni & Irini Voudouris & Spyros Lioukas, 2017. "Do Effectuation Processes Shape the Relationship between Product Diversification and Performance in New Ventures?," Entrepreneurship Theory and Practice, , vol. 41(3), pages 349-377, May.
    9. 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.
    10. Katrin M. Smolka & Ingrid Verheul & Katrin Burmeister–Lamp & Pursey P.M.A.R. Heugens, 2018. "Get it Together! Synergistic Effects of Causal and Effectual Decision–Making Logics on Venture Performance," Entrepreneurship Theory and Practice, , vol. 42(4), pages 571-604, July.
    11. Silvia Sanasi, 2023. "Entrepreneurial experimentation in business model dynamics: Current understanding and future opportunities," International Entrepreneurship and Management Journal, Springer, vol. 19(2), pages 805-836, June.
    12. 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.
    13. Dennis Lyth Frederiksen & Alexander Brem, 2017. "How do entrepreneurs think they create value? A scientific reflection of Eric Ries’ Lean Startup approach," International Entrepreneurship and Management Journal, Springer, vol. 13(1), pages 169-189, March.
    14. Saras D. Sarasvathy, 2021. "The Middle Class of Business: Endurance as a Dependent Variable in Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 45(5), pages 1054-1082, September.
    15. Shirokova, Galina & Morris, Michael H. & Laskovaia, Anastasiia & Micelotta, Evelyn, 2021. "Effectuation and causation, firm performance, and the impact of institutions: A multi-country moderation analysis," Journal of Business Research, Elsevier, vol. 129(C), pages 169-182.
    16. Chengbin, Wang & Hongbin, Wang & Min, Dai & Yongyan, Fang, 2022. "Lean Startup Approaches(LSAs): Convergence, Integration and Improvement," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    17. Igor Laine & Tamara Galkina, 2017. "The interplay of effectuation and causation in decision making: Russian SMEs under institutional uncertainty," International Entrepreneurship and Management Journal, Springer, vol. 13(3), pages 905-941, September.
    18. Antje Schmitt & Kathrin Rosing & Stephen X. Zhang & Michael Leatherbee, 2018. "A Dynamic Model of Entrepreneurial Uncertainty and Business Opportunity Identification: Exploration as a Mediator and Entrepreneurial Self-Efficacy as a Moderator," Entrepreneurship Theory and Practice, , vol. 42(6), pages 835-859, November.
    19. Sirén, Charlotta & Kohtamäki, Marko, 2016. "Stretching strategic learning to the limit: The interaction between strategic planning and learning," Journal of Business Research, Elsevier, vol. 69(2), pages 653-663.
    20. K. Poehlmann & R. Helm & O. Mauroner & J. Auburger, 2021. "Corporate spin-offs’ success factors: management lessons from a comparative empirical analysis with research-based spin-offs," Review of Managerial Science, Springer, vol. 15(6), pages 1767-1796, August.

    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:146:y:2019:i:c:p:945-960. 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.