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

Stonig, Joachim, Torsten Schmid, and Günter Müller‐Stewens

Abstract

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.

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Stonig, Joachim, Torsten Schmid, and Günter Müller‐Stewens. "From product system to ecosystem: How firms adapt to provide an integrated value proposition." Strategic Management Journal 43.9 (2022): 1927-1957. DOI: https://doi.org/10.1002/smj.3390