Abstract

This paper examines the application of effectuation principles in the context of digital multi-stakeholder platform ventures, focusing on how entrepreneurial approaches can navigate and leverage the open innovation pathway. Effectuation, a theory of entrepreneurial decision-making, emphasizes leveraging existing resources and forming strategic partnerships to drive innovation in uncertain environments. When applied to digital platforms with diverse stakeholders, effectuation guides entrepreneurs in adapting their strategies to meet evolving needs and create value through collaborative efforts. The concept of open innovation complements this by facilitating external collaboration, crowdsourcing, and ecosystem integration. Through case studies and theoretical exploration, this paper highlights how effectuation and open innovation intersect to foster successful platform development and scaling, offering insights into effective strategies for digital entrepreneurship in complex, multi-stakeholder settings.