Research Summary: Despite a wealth of research on competitive and cooperative strategy, gaps remain with respect to how firms successfully navigate cooperation and competition over time. This is especially true in ecosystems, in which firms depend on one another to collectively provide components and create value for consumers. Through an in-depth multiple case study of five firms in the U.-S. residential solar industry from 2007 to 2014, we induct a theoretical framework that explains how firms navigate nascent ecosystems over time. We identify three strategies, each with a distinct balance of cooperation and competition, as well as unique advantages, disadvantages, and required capabilities. Overall, we contribute to research on ecosystem strategy, crystallize the pivotal role of bottlenecks, and shed light on the dynamic interplay of cooperation and competition. Managerial Summary: Competition and cooperation are fundamental to strategy, and often closely intertwined. But how firms navigate and balance cooperation and competition over time, especially in ecosystems where firms depend on one another to deliver value to consumers, is unclear. In this article, we conduct an in-depth multiplecase study of five firms in the U.S. residential solar industry to examine how firms can successfully navigate nascent ecosystems over time. We identify three distinct strategies, each with a distinct balance of cooperation and competition, and examine the unique advantages, disadvantages, and required capabilities of each. In doing so, we also contribute novel insights into the evolution of ecosystems and bottlenecks.

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Research often examines disruption in the context of head-to-head competition between firms and technologies. In contrast, we examine the unique dynamics of disruptive technologies within supplier ecosystems. We do so through an inductive multiple case study set in the global advertising industry from 2008–2013, as the industry grappled with the emergence of social media. Using rich archival and field data, we closely track five global consumer goods manufacturers and their associated advertising suppliers as they attempted to integrate social media into their advertising activities. Our primary contribution is to unpack the process by which firms reconfigure their supplier ecosystems to address disruptive new technologies. Our framework reveals that integrating new technologies may require firms to reconfigure the distributions of both activity and power, and that fundamental trade-offs may leave the value of new technologies unrealized. Broadly, we contribute to research and theory on buyer-supplier relationships, alliances, and technology disruption by bringing a more realistic perspective that considers firms’ network of suppliers and interfirm turf wars in technology adoption.

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