concept

business ecosystem

Also known as: business ecosystem model

Facts (42)

Sources
Business ecosystems as a way to activate lock-in in business models link.springer.com Springer Mar 28, 2025 39 facts
claimNespresso, an operating unit of the Nestlé Group, utilizes a business ecosystem model where consumers must use specifically designed coffee machines to use Nespresso's patented, single-use coffee capsules.
accountAmazon launched its third business model, which evolved into a business ecosystem, in response to customer issues regarding delayed or misdirected order deliveries.
claimThe article 'Business ecosystems as a way to activate lock-in in business models: a theoretical integration' by D.M. Haftor, R.C. Climent, and A. Kallmuenzer is licensed under a Creative Commons Attribution 4.0 International License.
claimA theory of the business ecosystem was proposed by Jacobides et al. (2018) to offer a unified notion of the unique features of a business ecosystem in response to the growing number of ecosystems and diversity in theorizing.
claimBusiness ecosystems emerge when multiple actors cooperate to create value together, making dedicated investments to tailor their activities and resources to fit into the ecosystem, resulting in aggregate offerings that could not be created otherwise.
referenceThe theory of the business ecosystem, as introduced by Jacobides et al. (2018), is a standalone theory that can be integrated with business model theory to expand the list of lock-in mechanisms.
quoteAlignment structure in a business ecosystem is defined as 'the extent to which there is a mutual agreement among the members regarding positions and flows'.
claimFirms that invest resources in developing modules for a unique interface face the risk of being denied access to that interface and the risk of restricting their offering to a single business ecosystem.
referenceOne stream of business ecosystem literature defines the ecosystem as a 'community of organizations, institutions, and individuals that impact the enterprise and the enterprise’s customers and suppliers' (Teece, 2007: 1325).
claimDigital platforms function as marketplaces that offer transaction opportunities with lower friction than other models and provide a unique form of coordination that incentivizes innovation and entrepreneurial action not found outside a business ecosystem.
claimIf large corporations prioritize exploitation while overlooking exploration, the business ecosystem may suffer negative consequences, according to Corvello et al. (2023).
referenceIansiti and Levien (2004) discussed the dynamics of business ecosystems and their implications for strategy, innovation, and sustainability in their book, The Keystone Advantage.
referenceBusiness ecosystems are defined as groups of actors comprising multiple firms that possess unique or supermodular complementarity, which is non-generic and allows actors to create and appropriate value.
claimNespresso's business ecosystem creates lock-in for participating firms and consumers through dedicated investments, sunk costs, and the exclusion of other coffee producers and machine makers from the ecosystem.
claimBusiness ecosystems differ from strategic networks, firm-supplier relationships in a value chain, and formally integrated hierarchies because actors maintain interdependence and co-specialization through investments in capabilities without requiring contractual ties.
claimAmazon required more than a decade to establish a powerful business ecosystem under the Amazon Prime brand.
claimThe Perfetto coffee brand serves as an example of a firm that established its own business ecosystem with unique standards for modularity, interface, and access to compete with Nespresso.
claimA business ecosystem is defined as a group of actors that interact and depend on each other’s activities and resources to create value, according to Jacobides et al. (2018).
referenceJacobides et al. (2018) advanced the theory of the business ecosystem, which identifies a novel method for locking in actors that differs from the bilateral firm-customer dynamics typically focused on in business model theory.
claimThe literature stream focusing on collaborative arrangements asserts that if offerings from various actors are not successfully coordinated to ensure fit, the business ecosystem will fail to create value (Adner, 2012; Adner & Kapoor, 2010).
claimFirms should leverage business ecosystems to build substantial lock-in effects by establishing unique complementarities, encouraging modular specialization, and developing multi-sided network effects.
claimIn a business ecosystem, one or more actors establish standards with basic requirements for complementarity based on modularity and interfaces, while individual actors independently make decisions regarding design, price, and volume.
referenceA second stream of literature defines a business ecosystem as a set of components supported by complements, describing them as 'the collaborative arrangements through which firms combine their individual offerings into a coherent, customer-facing solution' (Adner, 2006: 98).
claimBusiness ecosystems are composed of actors from different industries offering complementary products and services that create user value, such as the Apple App Store providing applications that enhance iPhone utility.
claimThe article 'Business ecosystems as a way to activate lock-in in business models' introduces a conceptualization of a business model that activates the lock-in theme by establishing a business ecosystem.
quoteA business ecosystem is defined as 'the alignment structure of the multilateral set of partners that need to interact in order for a focal value proposition to materialize'.
claimOpen access funding for the article 'Business ecosystems as a way to activate lock-in in business models: a theoretical integration' was provided by Uppsala University.
claimIn a business ecosystem, a firm may act as a business model orchestrator, which sets standards for modularity, interfaces, and access rights, or as a provider of complementary products or services, which accesses the ecosystem while complying with the orchestrator's standards.
claimBusiness ecosystems operate without formal vertical integration or hierarchical governance.
claimThe concept of a business ecosystem emerged toward the end of the 1900s, developing in parallel to but separately from the concept of the business model, as noted by Iansiti & Levien (2004) and Moore (1993).
claimA primary challenge in business ecosystems is directing and coordinating the specific investments, activities, and resources of participating firms in the absence of direct hierarchical executive power.
claimLock-in in a business ecosystem is activated by multiple firms (at least two) whose complementary business model architectures enhance each other, rather than being activated solely by the business model architecture of a single firm.
claimOrchestrating a well-structured business ecosystem allows managers to enhance firm resilience and create high exit barriers for competitors and stakeholders.
claimBusiness model theory identifies six mechanisms for activating lock-in: brand loyalty, sunk costs, direct network effects, indirect network effects, data network effects, and the business ecosystem.
claimFirms that do not participate in the Nespresso ecosystem can compete by manufacturing machines using generic, unprotected standards or by establishing their own unique business ecosystems with different standards for modularity, interface, and access.
claimA firm's business model architecture can be configured to provide offerings that complement the business models of other firms, creating a unique form of complementarity that forms a business ecosystem, which activates lock-in for participants and raises entry barriers for imitators.
claimBusiness ecosystems enable multiple firms to create and appropriate value through unique complementarities in ways that are not possible for firms acting alone.
claimThe theory of the business ecosystem integrated with business model theory presented in the paper lacks empirical support as a whole, relying only on anecdotal illustrations.
claimUnder business ecosystem thinking, firms create value through collaboration rather than isolation, with companies depending on external actors similar to how organisms rely on their environment.
Comparing Business, Innovation, and Platform Ecosystems - PMC pmc.ncbi.nlm.nih.gov PMC 2 facts
claimThe study titled 'Comparing Business, Innovation, and Platform Ecosystems' has the primary research aim of critically examining theoretical studies on different ecosystem types, with a specific focus on business, innovation, and platform ecosystems.
claimThe research article 'Comparing Business, Innovation, and Platform Ecosystems' aims to critically examine theoretical studies on business, innovation, and platform ecosystem types.
[PDF] Business models for open source hardware theses.hal.science HAL Mar 11, 2020 1 fact
claimA business ecosystem is defined as an economic community.