Abstract

We are currently experiencing a period of digital transformation characterized by new disruptive business models that use information technology within gig economy. The gig economy is driven by informationalism, globalization, and network effects. Within this context, SaaS (software as a service) startups are particularly noteworthy. These are organizations in the early stages of the entrepreneurial process that often face scarcity of economic resources and lack structured internal processes. Therefore, this paper aims to explore the decision-making strategies adopted by SaaS startups when navigating the Valley of Death (VoD) through the perspective of the Causation-Effectuation Theory. This qualitative research involves a multiple-case study approach, featuring semi-structured interviews with founders of four SaaS startups, as well as document analysis to examine several contextual aspects, including vision, decision-making, management, and changes in business models. The main outcomes show that the effectuation logic is well-suited for crossing the VoD, offering strategies that address daily challenges and help consolidate innovation projects under economic pressure. In conclusion, effectuation logic emerges as the predominant strategy for SaaS startups as they navigate the VoD, enabling entrepreneurs to overcome obstacles, gain knowledge, and achieve scalable and sustainable growth.

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