IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v156y2020ics0040162519316233.html
   My bibliography  Save this article

Strategizing for digital innovations: Value propositions for transcending market boundaries

Author

Listed:
  • Antonopoulou, Katerina
  • Begkos, Christos

Abstract

Digital entrepreneurs often exploit market opportunities across boundaries by constantly designing value propositions rather than innovating. We conceptualize this as a strategizing practice, which we aim to investigate further. This paper explores the mechanisms that digital entrepreneurs use to design and redesign value propositions to exploit market opportunities across boundaries by drawing on a two-year in-depth case study of a digital venture. We argue that at the heart of designing value propositions are the following four mechanisms: excogitating functionality, self-reverberating benefits, designating interdependencies, and conforming intentionalities. The paper argues that through the constant enactment of these mechanisms and a pattern that acts as a catalyst, it is possible to redesign the value proposition to transcend market boundaries without constantly developing new digital products. Our paper offers significant implications for digital technology entrepreneurship and strategizing literature by (a) capturing and theorizing the continual design of the value proposition as a strategizing practice to transcend market boundaries, (b) enunciating the mechanisms underpinning the design of the value proposition, and (c) introducing a new theoretical approach to the study of value proposition drawing on a practice perspective.

Suggested Citation

  • Antonopoulou, Katerina & Begkos, Christos, 2020. "Strategizing for digital innovations: Value propositions for transcending market boundaries," Technological Forecasting and Social Change, Elsevier, vol. 156(C).
    • Handle: RePEc:eee:tefoso:v:156:y:2020:i:c:s0040162519316233
    DOI: 10.1016/j.techfore.2020.120042
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0040162519316233
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techfore.2020.120042?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. Jay B. Barney, 1986. "Strategic Factor Markets: Expectations, Luck, and Business Strategy," Management Science, INFORMS, vol. 32(10), pages 1231-1241, October.
    2. Deborah Dougherty & Danielle D. Dunne, 2011. "Organizing Ecologies of Complex Innovation," Organization Science, INFORMS, vol. 22(5), pages 1214-1223, October.
    3. Wanda J. Orlikowski & Jack J. Baroudi, 1991. "Studying Information Technology in Organizations: Research Approaches and Assumptions," Information Systems Research, INFORMS, vol. 2(1), pages 1-28, March.
    4. Liliana Doganova & Marie Eyquem-Renault, 2009. "What do business models do? Narratives, calculation and market exploration," Post-Print halshs-00347615, HAL.
    5. Brem, Alexander & Bilgram, Volker & Marchuk, Anna, 2019. "How crowdfunding platforms change the nature of user innovation – from problem solving to entrepreneurship," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 348-360.
    6. Doganova, Liliana & Eyquem-Renault, Marie, 2009. "What do business models do?: Innovation devices in technology entrepreneurship," Research Policy, Elsevier, vol. 38(10), pages 1559-1570, December.
    7. Morris, Michael & Schindehutte, Minet & Allen, Jeffrey, 2005. "The entrepreneur's business model: toward a unified perspective," Journal of Business Research, Elsevier, vol. 58(6), pages 726-735, June.
    8. Eero Vaara & Richard Whittington, 2012. "Strategy as practice : Taking Social Practices Seriously," Post-Print hal-02276672, HAL.
    9. Clark G. Gilbert, 2006. "Change in the Presence of Residual Fit: Can Competing Frames Coexist?," Organization Science, INFORMS, vol. 17(1), pages 150-167, February.
    10. Michel Callon, 2010. "Performativity, Misfires And Politics," Journal of Cultural Economy, Taylor & Francis Journals, vol. 3(2), pages 163-169, July.
    11. 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.
    12. Gerry Johnson & Leif Melin & Richard Whittington, 2003. "Micro Strategy and Strategizing: Towards an Activity‐Based View," Journal of Management Studies, Wiley Blackwell, vol. 40(1), pages 3-22, January.
    13. Marine Agogué & Kevin Levillain & Sophie Hooge, 2015. "Gamification of Creativity: Exploring the Usefulness of Serious Games for Ideation," Post-Print hal-01185366, HAL.
    14. Amrit Tiwana & Benn Konsynski & Ashley A. Bush, 2010. "Research Commentary ---Platform Evolution: Coevolution of Platform Architecture, Governance, and Environmental Dynamics," Information Systems Research, INFORMS, vol. 21(4), pages 675-687, December.
    15. Fabian Muniesa, 2014. "The Provoked Economy: Economic Reality and the Performative Turn," Post-Print halshs-00989576, HAL.
    16. Christos Begkos & Katerina Antonopoulou, 2020. "Measuring the unknown," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 33(3), pages 588-619, February.
    17. de Reuver, Mark & Sørensen, Carsten & Basole, Rahul C., 2018. "The digital platform: a research agenda," LSE Research Online Documents on Economics 80669, London School of Economics and Political Science, LSE Library.
    18. Nicholas Dew & S. Sarasvathy & S. Venkataraman, 2004. "The economic implications of exaptation," Journal of Evolutionary Economics, Springer, vol. 14(1), pages 69-84, January.
    19. Fabian Muniesa, 2014. "The Provoked Economy," Post-Print halshs-01113022, HAL.
    20. Bui, Binh & Cordery, Carolyn J. & Wang, Zhichao, 2019. "Risk management in local authorities: An application of Schatzki's social site ontology," The British Accounting Review, Elsevier, vol. 51(3), pages 299-315.
    21. Hans-Gerd Ridder, 2017. "The theory contribution of case study research designs," Business Research, Springer;German Academic Association for Business Research, vol. 10(2), pages 281-305, October.
    22. Eero Vaara & Richard Whittington, 2012. "Strategy as practice : Taking Social Practices Seriously," Post-Print hal-02312709, HAL.
    23. Eaton, Ben & Elaluf-Calderwood, Silvia & Sorensen, Carsten & Yoo, Youngjin, 2015. "Distributed tuning of boundary resources: the case of Apple's iOS service system," LSE Research Online Documents on Economics 63272, London School of Economics and Political Science, LSE Library.
    24. 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.
    25. Shafer, Scott M. & Smith, H. Jeff & Linder, Jane C., 2005. "The power of business models," Business Horizons, Elsevier, vol. 48(3), pages 199-207.
    26. Vargo, Stephen L. & Maglio, Paul P. & Akaka, Melissa Archpru, 2008. "On value and value co-creation: A service systems and service logic perspective," European Management Journal, Elsevier, vol. 26(3), pages 145-152, June.
    27. Beckert, Jens & Aspers, Patrik (ed.), 2011. "The Worth of Goods: Valuation and Pricing in the Economy," OUP Catalogue, Oxford University Press, number 9780199594658.
    28. Ola Henfridsson & Youngjin Yoo, 2014. "The Liminality of Trajectory Shifts in Institutional Entrepreneurship," Organization Science, INFORMS, vol. 25(3), pages 932-950, June.
    29. Martin Messner & Brian Jørgensen, 2010. "Accounting and Strategising: A Case Study from New Product Development," Post-Print hal-00528382, HAL.
    30. Kolloch, Michael & Dellermann, Dominik, 2018. "Digital innovation in the energy industry: The impact of controversies on the evolution of innovation ecosystems," Technological Forecasting and Social Change, Elsevier, vol. 136(C), pages 254-264.
    31. Brem, Alexander & Radziwon, Agnieszka, 2017. "Efficient Triple Helix collaboration fostering local niche innovation projects – A case from Denmark," Technological Forecasting and Social Change, Elsevier, vol. 123(C), pages 130-141.
    32. Jørgensen, Brian & Messner, Martin, 2010. "Accounting and strategising: A case study from new product development," Accounting, Organizations and Society, Elsevier, vol. 35(2), pages 184-204, February.
    33. Michael Barrett & Eivor Oborn & Wanda Orlikowski, 2016. "Creating Value in Online Communities: The Sociomaterial Configuring of Strategy, Platform, and Stakeholder Engagement," Information Systems Research, INFORMS, vol. 27(4), pages 704-723, December.
    34. Rafael Ramírez, 1999. "Value co‐production: intellectual origins and implications for practice and research," Strategic Management Journal, Wiley Blackwell, vol. 20(1), pages 49-65, January.
    35. Omar A. El Sawy & Arvind Malhotra & YoungKi Park & Paul A. Pavlou, 2010. "Research Commentary ---Seeking the Configurations of Digital Ecodynamics: It Takes Three to Tango," Information Systems Research, INFORMS, vol. 21(4), pages 835-848, December.
    36. Le, Huong Van & Suh, Min-ho, 2019. "Changing trends in internet startup value propositions, from the perspective of the customer," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 853-864.
    37. Youngjin Yoo & Ola Henfridsson & Kalle Lyytinen, 2010. "Research Commentary ---The New Organizing Logic of Digital Innovation: An Agenda for Information Systems Research," Information Systems Research, INFORMS, vol. 21(4), pages 724-735, December.
    38. Wanda J. Orlikowski, 1996. "Improvising Organizational Transformation Over Time: A Situated Change Perspective," Information Systems Research, INFORMS, vol. 7(1), pages 63-92, March.
    39. Henry Chesbrough & Richard S. Rosenbloom, 2002. "The role of the business model in capturing value from innovation: evidence from Xerox Corporation's technology spin-off companies," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 11(3), pages 529-555, June.
    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. Bunduchi, Raluca & Crișan-Mitra, Cătălina & Salanță, Irina-Iulia & Crișan, Emil Lucian, 2022. "Digital product innovation approaches in entrepreneurial firms – the role of entrepreneurs’ cognitive frames," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    2. Benzidia, Smaïl & Luca, Ruxandra Monica & Boiko, Sergiy, 2021. "Disruptive innovation, business models, and encroachment strategies: Buyer's perspective on electric and hybrid vehicle technology," Technological Forecasting and Social Change, Elsevier, vol. 165(C).
    3. da Fonseca, André Luís A. & Chimenti, Paula & Campos, Roberta D., 2023. "‘Take my advice’: Entrepreneurial consumers and the ecosystemic logics of digital platforms," Technological Forecasting and Social Change, Elsevier, vol. 193(C).
    4. 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).

    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. Klein, Amarolinda & Sørensen, Carsten & Freitas, Angilberto Sabino de & Pedron, Cristiane Drebes & Elaluf-Calderwood, Silvia, 2020. "Understanding controversies in digital platform innovation processes: The Google Glass case," Technological Forecasting and Social Change, Elsevier, vol. 152(C).
    2. 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).
    3. Teubner, Alexander & Stockhinger, Jan, 2020. "IT/IS strategy research and digitalization: An extensive literature review," ERCIS Working Papers 34, University of Münster, European Research Center for Information Systems (ERCIS).
    4. Andreas Hein & Maximilian Schreieck & Tobias Riasanow & David Soto Setzke & Manuel Wiesche & Markus Böhm & Helmut Krcmar, 2020. "Digital platform ecosystems," Electronic Markets, Springer;IIM University of St. Gallen, vol. 30(1), pages 87-98, March.
    5. Fabian Schueler & Dimitri Petrik, 2022. "Objectives of platform research: A co-citation and systematic literature review analysis," Papers 2202.08822, arXiv.org.
    6. Thorsten Koch & Josef Windsperger, 2017. "Seeing through the network: Competitive advantage in the digital economy," Journal of Organization Design, Springer;Organizational Design Community, vol. 6(1), pages 1-30, December.
    7. Chowdhury, Soumitra & Åkesson, Maria & Thomsen, Michel, 2021. "Service innovation in digitalized product platforms: An illustration of the implications of generativity on remote diagnostics of public transport buses," Technology in Society, Elsevier, vol. 65(C).
    8. Brunswicker, Sabine & Schecter, Aaron, 2019. "Coherence or flexibility? The paradox of change for developers’ digital innovation trajectory on open platforms," Research Policy, Elsevier, vol. 48(8), pages 1-1.
    9. Albøge, Kristian Groth & Andersen, Jesper Gyldenlev & Lueg, Rainer & Nielsen, Kristian Posselt, 2015. "A framework for business model development in technology-driven start-ups," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 69(1), pages 67-80.
    10. Boriana Rukanova & Mark Reuver & Stefan Henningsson & Fatemeh Nikayin & Yao-Hua Tan, 2020. "Emergence of collective digital innovations through the process of control point driven network reconfiguration and reframing: the case of mobile payment," Electronic Markets, Springer;IIM University of St. Gallen, vol. 30(1), pages 107-129, March.
    11. Aljona Zorina & William H. Dutton, 2021. "Theorizing Actor Interactions Shaping Innovation in Digital Infrastructures: The Case of Residential Internet Development in Belarus," Organization Science, INFORMS, vol. 32(1), pages 156-180, January.
    12. Şimşek, Tolga & Öner, M Atilla & Kunday, Özlem & Olcay, Gökçen Arkalı, 2022. "A journey towards a digital platform business model: A case study in a global tech-company," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    13. Ericson, Mona, 2014. "On the dynamics of fluidity and open-endedness of strategy process toward a strategy-as-practicing conceptualization," Scandinavian Journal of Management, Elsevier, vol. 30(1), pages 1-15.
    14. Swen Nadkarni & Reinhard Prügl, 2021. "Digital transformation: a review, synthesis and opportunities for future research," Management Review Quarterly, Springer, vol. 71(2), pages 233-341, April.
    15. Bouncken, Ricarda B. & Fredrich, Viktor, 2016. "Good fences make good neighbors? Directions and safeguards in alliances on business model innovation," Journal of Business Research, Elsevier, vol. 69(11), pages 5196-5202.
    16. Panos Constantinides & Ola Henfridsson & Geoffrey G. Parker, 2018. "Introduction—Platforms and Infrastructures in the Digital Age," Information Systems Research, INFORMS, vol. 29(2), pages 381-400, June.
    17. Boedker, Christina & Chong, Kar-Ming & Mouritsen, Jan, 2020. "The counter-performativity of calculative practices: Mobilising rankings of intellectual capital," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 72(C).
    18. Engwall, Mats & Kaulio, Matti & Karakaya, Emrah & Miterev, Maxim & Berlin, Daniel, 2021. "Experimental networks for business model innovation: A way for incumbents to navigate sustainability transitions?," Technovation, Elsevier, vol. 108(C).
    19. Mina Nasiri & Minna Saunila & Juhani Ukko & Tero Rantala & Hannu Rantanen, 2023. "Shaping Digital Innovation Via Digital-related Capabilities," Information Systems Frontiers, Springer, vol. 25(3), pages 1063-1080, June.
    20. Cheng, Cong & Wang, Limin, 2022. "How companies configure digital innovation attributes for business model innovation? A configurational view," Technovation, Elsevier, vol. 112(C).

    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:156:y:2020:i:c:s0040162519316233. 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.