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
