Evolution of Digital Innovations Based on Entrepreneurial Opportunities

Abstract

Digital innovations evolve unpredictable as the characteristics of digital technology provide diverse opportunities for entrepreneurs. The flexible, malleable, and unbounded nature of digital technologies makes the evolution process unpredictable as entrepreneurs can rarely estimate beforehand how new digital technologies might impact the evolution process. It is also hard to predict how customers will react to the changes enabled by digital technologies. In this longitudinal case study, we were interested in different competitive moves that entrepreneurs apply to effectuate changes in the evolutionary pathway of digital innovations. Further, we were fascinated by how the evolution of digital innovations is shaped by the characteristics of digital technologies. Based on the longitudinal case study, we recognized five different moves taken by entrepreneurs to bring to the market and further evolve their digital platform–based innovation. These moves were related either to the creation of new, unexpected opportunities that digital technologies enabled or to more planned decisions to expand market opportunities. This study contributes to digital entrepreneurship literature by providing a detailed method for analyzing the evolution of digital innovations through competitive moves.