Information & Management
Authors：Alan Hevner, Shirley Gregor (2022)
Presenter ：CHEN,YOU-SHENG (Shane)
2023 / 03 / 08
Envisioning entrepreneurship
and digital innovation through
a design science research lens :
A matrix approach

JCR
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Information & Management

Table of Contents
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01 Introduction
02 Research essay roadmap
03 Effectuation theory and
digital innovation
04 Design science research
process models
05 The knowledge innovation
matrix (KIM)
06 Entrepreneurial strategies
and innovation practices
07 Preparatory workshop
applying KIM
08 A DSR-DI process model for
digital innovation
09 Discussion and conclusions

Abstract
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Purpose
a novel process model of
DI (digital innovation) that
supports a richer
understanding of different
types of entrepreneurship
for the investment of DI
in organizations
Findings
the need for a higher order,
sense-making process model
that defines, structures, and
manages multiple innovation
strategies in an ambidextrous
entrepreneurship portfolio
Methodology
we draw on our prior stream of
research on DI over a period of
some years; combining work in
design science research (DSR)
and the application of DSR
concepts to digital innovation
(KIM & innovative design
activities)
Originality
provide a common language
and process model that can be
understood and used by
people with many different
backgrounds in
entrepreneurial activities

1. Introduction
Innovation slowdown
recent studies have expressed
concerns of an innovation slowdown
with deleterious consequences
Lack of commitment
the lack of strong, coordinated commitments by
industrial, academic, and governmental entities
to enable and support an entrepreneurial
culture of innovation and risk-taking
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Challenges Measuring outcomes
Unpredictable
Over regulation
Diversity of stakeholders
Readiness for
disruptive innovations
Difficulties of scaling

1. Introduction
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Digital innovation emphasizes combinations of digital and physical
components to produce novel products that organizations across a
wide range of disciplines view DI to be of vital importance
Ambidextrous organizations should be capable of both exploring
new opportunities and working diligently at exploiting existing
capabilities
More than traditional innovation, requires many different
perspectives on the methods and tools to be used in the
development of effective and evolvable complex systems
incorporating DI

2. Research essay roadmap
Innovation (J. Tidd, 2009)
innovation is a process of
turning opportunity into
new ideas and of
putting these into wide
used practice.
Innovation (OECD, 2005)
an innovation is the
implementation of a new
or significantly improved
product or process.
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Digital innovation (Y.Yoo, 2010)
a subset of innovation in
which information
technology (IT) and
digitization of information
are embodied in the
innovation or enable the
innovation
DSR (A. Hevner, 2004)
creates and evaluates IT
artifacts to solve
organizational problems
that can apply to both
general innovation and
digital innovation

2. Research essay roadmap
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The synthesis of DI and DSR provides
significant value in that the knowledge
contribution, an explicit requirement of
DSR, is made visible in order to provide
greater validity, credibility, acceptance,
and reusability of the innovation results
Via disciplined use of the DSR-DI matrix
process, an organization can strategically
construct an ambidextrous portfolio of DI
projects

3. Effectuation theory and digital innovation
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How can a rigorous collaborative discipline in a formal process model be defined for
designing, building, evaluating, evolving, and operating such massive, complex, and
unpredictable DI-embedded systems?
we ground our thinking in effectuation theory from the research field of entrepreneurship
2001 Sarasvathy conceptualizes effectuation as the opposite of causation
Effectuation is about designing and evaluating alternatives with differing effects instead
of choosing among given alternatives
find possibilities → perceived opportunities → ongoing → markets
2006 Wiltbank describe 4 strategies that entrepreneurs can apply to DI
planning → adapting(environment) → following(clear vision) →
being transformative in the sense of applying effectual logic

4. Design science research process models
ADR
DSRM
Extend GDC model
to apply DSR
Performing DSR
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1990 Nunamaker et al.
for scheduling and coordinating
design activities
5 stages: conceptual design, constructing the architecture of the system, analyzing
the design, prototyping
2008
Vaishnavi and
Kuechler
extend the General Design Cycle
model of Takeda et al. (1990)
5 steps: awareness of the problem → preliminary design suggestion →
development stage → iterations → explicit in the suggestion
2007 Peffers et al.
for the production and presentation
of DSR
6 steps: problem identification, definition solution, design and development,
demonstration, evaluation, and communication
2011 Sein et al.
followed by multiple iterations of the
build intervention
2022 Hevner and Gregor
support differing entrepreneurial
activities for the 4 types of strategies
DSR-DI

5. The knowledge innovation matrix (KIM)
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An empirical study that processes for radical innovations differ from those for
incremental innovations
2014 Koen et al.
Incremental innovations include cost reductions,
improvements to existing product line, and repositioning
efforts
2014 Koen et al.
Radical innovations are additions to existing product lines,
new product lines, and new-to-the-world products
Some basic dichotomous classifications include the distinction between
exploration and exploitation
1991 March
Exploration was “search, variation, risk taking,
experimentation, play, flexibility, discovery, innovation”
1991 March
Exploitation was “refinement, choice, production, efficiency,
selection, implementation, execution”

5. The knowledge innovation matrix (KIM)
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We apply the Knowledge
Innovation Matrix (KIM) as
initially developed in Gregor
and Hevner(2015)
KIM offers a finer-grained
view than simple
dichotomous classifications
and is firmly based in the
fundamental differences in
triggers of an innovation
推進 開發
發明 擴展適應

5. The knowledge innovation matrix (KIM)
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application domain
(problem) maturity -Y
• key roles in innovation of
opportunities [34], tasks and
problems [62], markets [63],
needs [64] and fields
knowledge (solution)
maturity -X
• key roles in innovation of new
ideas [57,58], new insights
[59],new knowledge and skills
[60], technological know-how
[53], new knowledge [61], and
learning

5. The knowledge innovation matrix (KIM)
advancement
where a better solution
is developed for a
known problem
invention
radical innovations
both the idea of the
problem or opportunity,
have not been recognized
exploitation
incremental innovations
seen as ‘new-to-us’
rather than
‘new-to-the-world.’
exaptation
how to satisfy one particular
need or application function
is applied to another need or
market in a completely
different field
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推進 開發
發明 擴展適應
Fig. 2. Knowledge Innovation Matrix
application
domain
High knowledge
Low knowledge
Low
High
exploitation
Variants of
exploration

6. Entrepreneurial strategies and innovation practices
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6.1. Invention strategy and practices
• high levels of creativity will be
required to generate novel
ideas
• the support of conditions
fostering creativity are important
• non-conventional approaches
for the development of ideas will
be employed
Strategy
1. genius grants
2. bootlegging
 give freedom
and free time
 allowing
innovators to
incubate ideas
 encourage original thinking
Individual
characteristics
 highly creative
 strong intrinsic
motivation
（fringe experts）
 preparation
 incubation
 evaluation
 elaboration

6. Entrepreneurial strategies and innovation practices
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6.2. Exaptation strategy and practices
• high level of creativity and
associative thinking are
required to generate the
novel relationships between
the existing knowledge and a
new application
Strategy
1. crowd-sourcing
2. open-sourcing
3. out-of-the-box design thinking
4. collaborative design
 encourage
contributions of
diverse ideas
 collaborative teams
with diversities in
domain expertise and
technical skill sets
Individual
characteristics
 highly creative
 strong intrinsic
motivation
encouraged to
generate idea
 brainstorming
 ideation
exercises

6. Entrepreneurial strategies and innovation practices
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6.3. Advancement strategy and practices
• the one in which there is less
than optimal solution
knowledge for addressing a
relatively well-understood
problem
• the experts may lie outside
the organization
Strategy
1. achieve a significant advance
on existing knowledge for
solving a particular problem
2. heuristic search
3. buy in R&D projects
 access to important
knowledge sources in
the knowledge base
 find a true
difference
 allow experimentation
and risk taking
Individual
characteristics
 highly creative
 strong intrinsic
motivation
 require true
expertise and
in-depth domain
knowledge

6. Entrepreneurial strategies and innovation practices
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6.4. Exploitation strategy and practices
• the one in which there is mature
solution knowledge for
achieving a well-understood
problem
• identify the best practices that
have produced superior results
in other firms and replicate
these practices to improve its
own competitive advantage
Strategy
1. to optimize the functioning
of a state-of-the-art
technology in a new
application environment
 environmental
factors provide an
opportunity that could
lead to value-added
advantages
 can apply
cutting-edge
technologies
to interesting
problems
Individual characteristics
 typify creative people
 redefining of the
innovation to fit a new
context
 agenda-setting
 matching
 redefining/
restructuring
 clarifying
 routinizing

participants
there were 11 participants in the workshop, gender (7 male, 4 female); sector (7 private
sector, 3 public sector, 1 academic); and work roles (2 management, 1 analyst, 1 administration,
2 R&D, 1 management consulting, 1 strategy, 1 product development, 1 sales, 1 solutions)
procedure
1. to classify 6 cases as entrepreneurial strategies
2. the KIM matrix could be used further in nudge design innovation
Comments (questionnaire)
• 70 % of cases were classified in the quadrant regarded as the best fit by the experimenters
• as a way of understanding where innovation fits
• a more structured way, significant and desirable tool in application of strategy
7. Preparatory workshop applying KIM
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8. A DSR-DI process model for digital innovation
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its environmental
context from the
current problem space
and appropriates
existing knowledge
from the extant
knowledge bases

8. A DSR-DI process model for digital innovation
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The goal is to form a collaborative,
high functioning entrepreneurial
team with a full understanding of the
means, aspirations, and capabilities
that each role brings to the project
The resources will allow detailed
project planning activities to be
performed for budgeting, staffing,
and scheduling purposes

8. A DSR-DI process model for digital innovation
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The team must represent the
complex problem or opportunity
in a format that can be
understood and manipulated
 choose to approach the
problem iteratively
 to reframe the problem
entirely
 to imitate another design
 to decompose the system into
subsystems
to identify which of the four matrix
strategies will be most effectively
applied in this innovation cycle

8. A DSR-DI process model for digital innovation
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The execution of the selected
entrepreneurial strategy is the stage
of creating novel ideas
They allow human creativity and
reason will be important for success
Domain-
relevant
skills
Creativity-
relevant
processes
Intrinsic task
motivation
The social
environment

8. A DSR-DI process model for digital innovation
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• Can the proposed design be
implemented?
• Does the design have value?
• How can the design be most
effectively represented and
communicated?
• How best to construct the actual use
artifacts?
• How can we demonstrate the utility of
the design artifact before its
implementation into the problem
space?

8. A DSR-DI process model for digital innovation
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an important impact will be made from
the intervention of the DI design into
the problem space with clear evidence
generated to determine the success or
failure of the entrepreneurial project
• Fitness for Use:
assesses the ability of the design
artifact to perform in the current
application context with the current
set of goals in the problem space
• Fitness for Evolution:
assesses the ability of the DI design
artifact to adapt to changes in the
problem space over time

8. A DSR-DI process model for digital innovation
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The team’s activities
• to reflect on the completed
innovation cycle, to capture
lessons learned
• to plan for future digital
innovation cycles
• to follow up the success (or
failure) of the current cycle with
new entrepreneurial goals

9. Discussion and conclusions
invention
creative processes within an individual or
group that are facilitated by conditions
01
exaptation
allow the identification of new user needs that
can be met by an existing technology
02
advancement
knowledge of novel technology advances, and
experience with traditional R&D-type activities
03
exploitation
could be adopted or appropriated with some
re-design by an organization or individual
04
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9. Discussion and conclusions
future research
we suggest deeper investigations into the
different entrepreneurial roles for key DI stakeholders
1
Limitations
We recognize that the landscape of digital innovation is huge and there are
other entrepreneurial roles and strategies that we have not been able to
cover adequately in this essay
2
• To investigate how organizations can use the DSR-DI model so as to behave
ambidextrously, being involved in all four entrepreneurial strategies
• To balance these activities well are 9 times more likely to achieve
breakthrough products (S.Muller, 2004)
3
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THANK
YOU
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RESOURCES
● Alan Hevner, Shirley Gregor, Envisioning entrepreneurship and digital innovation
through a design science research lens: A matrix approach, Information & Management,
Volume 59, Issue 3, 2022, 103350, ISSN 0378-7206,
https://doi.org/10.1016/j.im.2020.103350.
● Free Google Slides theme and PowerPoint template - Digital Divide Infographics
https://slidesgo.com/theme/digital-divide-infographics#position-3&related-
1&rs=detail-related
● Microsoft Stock images (royalty-free images)
● “Effectual Thinking” Is What Makes Entrepreneurs Entrepreneurial?
https://www.linkedin.com/pulse/effectual-thinking-what-makes-entrepreneurs-brad-
costanzo
● 星巴克設計團隊的創意地鐵, 《經理人月刊》編輯部
https://www.managertoday.com.tw/articles/view/2647