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Legitimacy building of digital platforms in the informal economy: evidence from Indonesia
Journal of Entrepreneurship in Emerging Economies ( IF 2.9 ) Pub Date : 2021-08-16 , DOI: 10.1108/jeee-02-2021-0073
Eko Heru Prasetyo 1
Affiliation  

Purpose

This study aims to investigate how digital entrepreneurs develop platforms business models under an unregulated market and what approach they take to address informal economy (IE) activities.

Design/methodology/approach

The author used a qualitative method by interviewing sixteen respondents, including founders, Chief Executive Officers, and managers of digital-driven start-ups in Indonesia. I then analysed the interviews into several codes and themes for further discussion.

Findings

This study reveals distinctive approaches performed by startups within three-level institutions, namely, users, market and regulation. Each level represents digital entrepreneurs’ unique behaviour, which the author described as collective, narrative and compliant.

Research limitations/implications

This paper demonstrates that digital entrepreneurs leveraging informal sectors contribute to the process of formalisation. However, the author emphasise less on how it impacts informality and who receives incentives.

Practical implications

This study suggests appropriate strategies for entrepreneurs who build and develop a platform beyond immature setting and unveils different directions to comprehend their legitimacy building.

Social implications

This study also elucidates political implications such as how the dynamics between regulators’ response and entrepreneurs’ reaction shape the new regulative environment. An idea of self-regulate – entrepreneurs as actors instead of a subject of regulation – might be suitable to reflect how they overcome the bottom of the pyramid using technology innovation.

Originality/value

While previous studies focused primarily on sharing economy, this study provides a different array of discussion on the digitalisation of the informal economy in emerging markets.



中文翻译:

非正规经济中数字平台的合法性建设:来自印度尼西亚的证据

目的

本研究旨在调查数字企业家如何在不受监管的市场下开发平台商业模式,以及他们采取什么方法来解决非正规经济 (IE) 活动。

设计/方法/途径

作者使用定性方法采访了 16 位受访者,其中包括印度尼西亚数字驱动型初创企业的创始人、首席执行官和经理。然后我将访谈分析成几个代码和主题以供进一步讨论。

发现

本研究揭示了初创公司在三级机构(即用户、市场和监管)中执行的独特方法。每个级别代表数字企业家的独特行为,作者将其描述为集体的、叙事的和顺从的。

研究局限性/影响

本文表明,利用非正规部门的数字企业家有助于正规化进程。然而,作者较少强调它如何影响非正规性和谁获得激励。

实际影响

本研究为在不成熟的环境下建立和开发平台的企业家提出了适当的策略,并揭示了理解其合法性建设的不同方向。

社会影响

这项研究还阐明了政治影响,例如监管者的反应和企业家的反应之间的动态如何塑造新的监管环境。自我监管的想法——企业家作为参与者而不是监管主体——可能适合反映他们如何利用技术创新克服金字塔底部。

原创性/价值

虽然之前的研究主要集中在共享经济上,但本研究针对新兴市场非正规经济的数字化提供了一系列不同的讨论。

更新日期:2021-08-16
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