Ecosystem Effectuation: Creating New Value Through Open Innovation During a Pandemic

The Eindhoven University of Technology posted a unique case study of a low-cost airline, AirAsia. With their fleet of aircraft grounded by the Pandemic, and unable to pursue any incremental innovation opportunities, AirAsia decided to follow a radical ambidexterity path – focusing on exploration by building an innovation ecosystem.  This case not only offers insights on a novel way to create value through open innovation but also extends the body of knowledge on entrepreneurial effectuation by introducing the concept of an ecosystem effectuation. AirAsia’s case shows that, in financially distressed times, business model reconfiguration may not be enough, and instead of selecting means to attain goals, the goals may be created upon available means.

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