Growing Up Innovative : A Multiple Case Study of Digital Innovation in Digital Startups

Digital startup firms are key actors in innovation landscapes and a viable part of the Swedish tech industry. They operate within hypercompetitive environments, which are dynamic and volatile due to the nature of digital technologies. However, startups often face challenges such as limited resources in terms of finances, skills, and knowledge that affect their preconditions for innovation. Previous research has failed to address the unique characteristics and required management competencies of startups engaged in digital innovation. We aim to contribute to the field of IS and digital innovation, but also provide deeper insights for new startups on how to manage digital innovation. Therefore, we explore the following research question: how do digital startups manage innovation? We have conducted a multiple case study and our findings included two different approaches for digital innovation management in startups - knowledge-push and need-pull. Our findings suggest that these different approaches to digital innovation management affect several activities within the startups. These are: strategic use of data, value creation, financial resources, knowledge-sharing/capabilities, and networking. Further, we suggest practical implications for startups and suggestions for future research.