Managing uncertainty propagation in innovation ecosystems

Abstract

The propagation of uncertainty occurs when information, perceived as revealing uncertainty, spreads through the innovation ecosystem. This paper explores how entrepreneurs cope with uncertainty propagation. Drawing on four in-depth inductive case studies of innovation ecosystems, we characterise the phenomenon of uncertainty propagation and the mechanisms by which entrepreneurs might manage the same. The mechanisms are: i) identification of a protected niche; ii) use of cognitive alignment; iii) adoption of sequential learning; and iv) use of a communication platform. These mechanisms serve as the basis of a holistic framework that can be used to mitigate the effects and occurrence of uncertainty propagation. Overall, this paper contributes to the reinvigoration of the study of uncertainty and the management of uncertainty in new firms and in the innovation ecosystems.