The Translucent Hand of Managed Ecosystems: Engaging Communities for Value Creation and Capture

Altman, Elizabeth J.; Nagle, Frank; Tushman, Michael L.

doi:10.5465/annals.2020.0244

Cited by 76 publications

(74 citation statements)

References 255 publications

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“…(2) Our study shows the complexity of ecosystem creation by revealing a configurational change for a focal firm (Meyer, Tsui, & Hinings, 1993; Miller, 1986), involving changes in the firm's product activities in combination with changes in strategy and organizational design. Extant research tends to neglect that the internal activities of participating firms are likely to facilitate or hinder ecosystem emergence (Altman et al, 2022; Kapoor, 2018). We show that changes in the firm's strategy and organizational design may support the alignment of existing products and new ecosystem activities and in turn the firm's shift to an orchestrating role in the emerging ecosystem (Puranam, Alexy, & Reitzig, 2014).…”

Section: Discussionmentioning

confidence: 99%

“…Beyond simulation studies, however, there is limited knowledge about how managers can reconfigure activity systems to enable system‐wide renewal (Albert et al, 2015) towards an ecosystem (Altman et al, 2022; Joseph & Gaba, 2020). Even when managers of an established firm perceive the need to change their core business, they often struggle to find appropriate reconfigurations for their activity system (Danneels, 2011).…”

Section: Relevant Literaturementioning

confidence: 99%

“…We need to supplement the focus on non‐generic complementarities at the ecosystem level with detailed empirical knowledge of how firms cope with complementarities between products and the emerging ecosystem (Jacobides et al, 2018; Shipilov & Gawer, 2020). Such knowledge could enhance understanding of the processes and mechanisms underlying the adaptation (or failure) of established firms facing new integrated value propositions (Altman, Nagle, & Tushman, 2022). Therefore, we ask: “How can a firm adapt its existing product business to support the creation of an integrated value proposition?”…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

From product system to ecosystem: How firms adapt to provide an integrated value proposition

Stonig

Schmid

Müller-Stewens

2022

Strategic Management Journal

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Research Summary Ecosystems represent a key challenge for established firms, shifting their focus from products to system‐level collaboration around integrated value propositions. This longitudinal case study of a machine manufacturer reports how an established firm created an ecosystem to enhance its focal product. Drawing on an activity system lens, we develop a model how firms can achieve fit around an integrated value proposition through mutual adaptation of product and ecosystem activities. This strategic transformation is supported by a shift towards collaborative organizational design. We elaborate on how firms can create non‐generic complementarities between products and the emerging ecosystem through product adaptations, demonstrate the role of internal and external collaboration in developing ecosystem orchestration capabilities, and highlight data generation and processing as critical factors in realizing complementarities. Managerial Summary Digital ecosystems that enable new integrated value propositions pose a challenge for established firms, as these new activities often fundamentally conflict with the existing product business. Our case study of a machine manufacturer shows how a firm can leverage its product‐focused activities to establish itself as an ecosystem leader through the mutual adaptation of its product and ecosystem activities. The focal firm modularized its products and enhanced their information‐processing capacities while simultaneously embedding them in an integrative platform with open interfaces for partner components. The firm was thus able to realize data‐driven complementarities between the platform and its components. Supporting the ecosystem‐creation process required a shift of the organizational design towards collaboration, both internally and with partners.

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Section: Discussionmentioning

confidence: 99%

Section: Relevant Literaturementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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From product system to ecosystem: How firms adapt to provide an integrated value proposition

Stonig

Schmid

Müller-Stewens

2022

Strategic Management Journal

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“…Managed ecosystem entry modes deal with foreign entries of multi-sided platforms, in which platform firms leverage their firm-specific digital infrastructure while also cultivating localized operations. Altman, Nagle, and Tushman ( 2021 ) define managed ecosystems as unique ways in which firms engage external parties for value creation and capture such that the locus of activity resides outside the focal firm’s organizational boundaries while the locus of control remains within the firm. Managed ecosystem entry modes differ from virtual presence entry modes although both provide a vehicle for the firm to leverage firm-specific advantages in a foreign market.…”

Section: Entry Mode Researchmentioning

confidence: 99%

Charting new courses to enter foreign markets: Conceptualization, theoretical framework, and research directions on non-traditional entry modes

Brouthers

Chen

et al. 2022

J Int Bus Stud

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Recent advances in digitalization and increasing integration of international markets are paving the way for a new generation of firms to use non-traditional entry modes that are largely marginalized in previous entry mode studies. While extant research revolves around the level of resource commitment and control in foreign activities, non-traditional modes are encapsulated by the extent of embeddedness required for exploring new and/or exploiting existing resources. In particular, we draw attention to four such categories of non-traditional entry modes the literature has touched on, i.e., capital access, innovation outposts, virtual presence, and the managed ecosystem. We explore the key attributes, antecedents, and strategic implications of these modes. Our paper highlights the need for enriching current entry mode research by considering a broader range of entry mode activities available to firms as well as employing new theoretical perspectives to understand the complex phenomena of internationalization.

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“…3 Within firms, Community-and-Collaboration approaches appear in a range of forms, from producer cooperatives to advanced forms of participative management in conventional capitalist firms. Between firms, it can take the form of "managed ecologies" (Altman et al 2021) and the "collaborative communities" discussed by Snow et al (2009).…”

Section: Organization Sphere: Between Business Process and Community-and-collaborationmentioning

confidence: 99%

Alternative Futures for the Digital Transformation: A Macro-Level Schumpeterian Perspective

Bodrožić

Adler

2022

Organization Science

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This paper develops and deploys a theoretical framework for assessing the prospects of a cluster of technologies driving what is often called the digital transformation. There is considerable uncertainty regarding this transformation’s future trajectory, and to understand and bound that uncertainty, we build on Schumpeter’s macro-level theory of economy-wide, technological revolutions and on the work of several scholars who have extended that theory. In this perspective, such revolutions’ trajectories are shaped primarily by the interaction of changes within and between three spheres—technology, organization, and public policy. We enrich this account by identifying the critical problems and the collective choices among competing solutions to those problems that together shape the trajectory of each revolution. We argue that the digital transformation represents a new phase in the wider arc of the information and communication technology revolution—a phase promising much wider deployment—and that the trajectory of this deployment depends on collective choices to be made in the organization and public policy spheres. Combining in a 2 × 2 matrix the two main alternative solutions on offer in each of these two spheres, we identify four scenarios for the future trajectory of the digital transformation: digital authoritarianism, digital oligarchy, digital localism, and digital democracy. We discuss how these scenarios can help us trace and understand the future trajectory of the digital transformation.

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The Translucent Hand of Managed Ecosystems: Engaging Communities for Value Creation and Capture

Cited by 76 publications

References 255 publications

From product system to ecosystem: How firms adapt to provide an integrated value proposition

From product system to ecosystem: How firms adapt to provide an integrated value proposition

Charting new courses to enter foreign markets: Conceptualization, theoretical framework, and research directions on non-traditional entry modes

Alternative Futures for the Digital Transformation: A Macro-Level Schumpeterian Perspective

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