Fractal Characteristics of Discontinuous Growth of Digital Company: An Entrepreneurial Bricolage Perspective
Digital companies exhibit discontinuous growth in the process of shifting from their existing core business to a newer and less familiar business. This pattern of growth often ends in failure mainly because companies invest most of their resources in maintaining the value network of their existing c...
Saved in:
| Main Authors: | , , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Wiley
2021-01-01
|
| Series: | Complexity |
| Online Access: | http://dx.doi.org/10.1155/2021/8839941 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1832554582448799744 |
|---|---|
| author | Xiaoyu Yu Jiangyong Lu Xiaomin Liu Yihan Wang Yilin Jia |
| author_facet | Xiaoyu Yu Jiangyong Lu Xiaomin Liu Yihan Wang Yilin Jia |
| author_sort | Xiaoyu Yu |
| collection | DOAJ |
| description | Digital companies exhibit discontinuous growth in the process of shifting from their existing core business to a newer and less familiar business. This pattern of growth often ends in failure mainly because companies invest most of their resources in maintaining the value network of their existing core business, which ultimately results in a “lock-in” effect. The fractal theory assumes that there are similarities among fractals within companies. These similarities may reduce the threats posed by the value network lock-in effect and increase the chances of successful discontinuous growth. In this study, we applied fractal theory to consider the following questions: (1) in what aspects does the successful discontinuous growth of digital companies exhibit fractal characteristics? (2) What strategy does digital companies use to ensure these fractal characteristics? We adopted an exploratory single-case study method and chose ByteDance as the case company to analyze its successful shift from Toutiao (a media platform) to Douyin (a short-video sharing platform). Our results show that (1) a necessary condition for the successful discontinuous growth of digital companies is that similarities exist (e.g., in technology or customer base) between the existing core business and the new business and (2) entrepreneurial bricolage is a strategy used by digital companies to ensure the existence of fractal characteristics of similarities. We discuss the theoretical contributions and practical implications of this finding. |
| format | Article |
| id | doaj-art-98736a0677e5475b9a6616efa53b73f8 |
| institution | Kabale University |
| issn | 1076-2787 1099-0526 |
| language | English |
| publishDate | 2021-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Complexity |
| spelling | doaj-art-98736a0677e5475b9a6616efa53b73f82025-02-03T05:51:12ZengWileyComplexity1076-27871099-05262021-01-01202110.1155/2021/88399418839941Fractal Characteristics of Discontinuous Growth of Digital Company: An Entrepreneurial Bricolage PerspectiveXiaoyu Yu0Jiangyong Lu1Xiaomin Liu2Yihan Wang3Yilin Jia4School of Management, Shanghai University, Shanghai 200444, ChinaGuanghua School of Management, Peking University, Beijing 100871, ChinaSchool of Management, Shanghai University, Shanghai 200444, ChinaSchool of Management, Shanghai University, Shanghai 200444, ChinaSchool of Management, Shanghai University, Shanghai 200444, ChinaDigital companies exhibit discontinuous growth in the process of shifting from their existing core business to a newer and less familiar business. This pattern of growth often ends in failure mainly because companies invest most of their resources in maintaining the value network of their existing core business, which ultimately results in a “lock-in” effect. The fractal theory assumes that there are similarities among fractals within companies. These similarities may reduce the threats posed by the value network lock-in effect and increase the chances of successful discontinuous growth. In this study, we applied fractal theory to consider the following questions: (1) in what aspects does the successful discontinuous growth of digital companies exhibit fractal characteristics? (2) What strategy does digital companies use to ensure these fractal characteristics? We adopted an exploratory single-case study method and chose ByteDance as the case company to analyze its successful shift from Toutiao (a media platform) to Douyin (a short-video sharing platform). Our results show that (1) a necessary condition for the successful discontinuous growth of digital companies is that similarities exist (e.g., in technology or customer base) between the existing core business and the new business and (2) entrepreneurial bricolage is a strategy used by digital companies to ensure the existence of fractal characteristics of similarities. We discuss the theoretical contributions and practical implications of this finding.http://dx.doi.org/10.1155/2021/8839941 |
| spellingShingle | Xiaoyu Yu Jiangyong Lu Xiaomin Liu Yihan Wang Yilin Jia Fractal Characteristics of Discontinuous Growth of Digital Company: An Entrepreneurial Bricolage Perspective Complexity |
| title | Fractal Characteristics of Discontinuous Growth of Digital Company: An Entrepreneurial Bricolage Perspective |
| title_full | Fractal Characteristics of Discontinuous Growth of Digital Company: An Entrepreneurial Bricolage Perspective |
| title_fullStr | Fractal Characteristics of Discontinuous Growth of Digital Company: An Entrepreneurial Bricolage Perspective |
| title_full_unstemmed | Fractal Characteristics of Discontinuous Growth of Digital Company: An Entrepreneurial Bricolage Perspective |
| title_short | Fractal Characteristics of Discontinuous Growth of Digital Company: An Entrepreneurial Bricolage Perspective |
| title_sort | fractal characteristics of discontinuous growth of digital company an entrepreneurial bricolage perspective |
| url | http://dx.doi.org/10.1155/2021/8839941 |
| work_keys_str_mv | AT xiaoyuyu fractalcharacteristicsofdiscontinuousgrowthofdigitalcompanyanentrepreneurialbricolageperspective AT jiangyonglu fractalcharacteristicsofdiscontinuousgrowthofdigitalcompanyanentrepreneurialbricolageperspective AT xiaominliu fractalcharacteristicsofdiscontinuousgrowthofdigitalcompanyanentrepreneurialbricolageperspective AT yihanwang fractalcharacteristicsofdiscontinuousgrowthofdigitalcompanyanentrepreneurialbricolageperspective AT yilinjia fractalcharacteristicsofdiscontinuousgrowthofdigitalcompanyanentrepreneurialbricolageperspective |