Cost‐effectively leveraging digital capital to develop means for effectual decision‐making

Abstract Research Summary Extant studies suggest that a particular set of means, once in place, prompt entrepreneurs to enact effectual decision‐making. However, little is known about how such effectual means are developed, particularly when entrepreneurs' primary means are digital capital rather than pre‐existing effectual means. To address this gap, our qualitative research examines an emerging phenomenon in which young people engage in side‐hustling through social media. Our findings reveal that entrepreneurs develop effectual means by leveraging digital capital through browsing, consulting, and imitating. This developmental process is significantly streamlined by digital capital's generativity, recommendability, and multimodality, with its cost‐effectiveness dynamically assessed to determine the continuity of development. Drawing on these findings, we discuss implications for effectuation theory and entrepreneurship studies. Managerial Summary Entrepreneurs are known to rely on their established means for effectual decision‐making. However, little is known about how entrepreneurs make effectual decisions when they possess digital capital but have underdeveloped means for effectuation. This study explores how young side‐hustlers on social media build means for effectuation through browsing, consulting, and imitating. The generativity, recommendability, and multimodality of digital capital significantly enhance this developmental process, while cost‐effectiveness is continuously assessed to determine whether to proceed. We develop a process model that illustrates how entrepreneurs leverage and optimize digital capital to drive effectuation in the digital age.