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Opinnäytetyön Kirjoitamisen Ohjeet LAPPEENRANTA UNIVERSITY OF TECHNOLOGY School of Business and Management Master’s Degree Programme in Strategy, Innovation and Sustainability (MSIS) Abdullai, Abdul-Rauf Larry DANCE WITH SOME AND DINE WITH OTHERS: ECOSYSTEM STRATEGY, MULTIPLE ECOSYSTEMS AND LEADERSHIP ROLES 1st Supervisor: Professor Paavo Ritala, LUT 2nd Supervisors: Pontus Huotori (D.Sc), LUT ABSTRACT Author’s name: Abdul -Rauf Larry Abdullai Title of thesis: Dance with Some and Dine with Others: Ecosystem Strategy, Multiple Ecosystems and Leadership Roles School: LUT School of Business and Management Master’s Strategy, Innovation and Sustainability Program: Year: 2018 Master’s Thesis: Lappeenranta University of Technology 150 pages (without ref list), Figures, 19 Tables 22 Examiners: Professor Paavo Ritala Pontus Huotori (D.Sc) Keywords: Ecosystems, strategies, leadership roles, orchestration, complexity. This is an exploratory research aimed at furthering the understanding on the activities central players in business undertake to manage the complexities associated with their ecosystems. Admittedly, there exist extensive works on ecosystem leadership and strategies, nonetheless, quite a handful focus on how focal firms manage the relational and technological ecosystem complexities. Hence, the complexity attributes of ecosystems necessitated the interest to investigate the phenomenon which is considered timely and novel. The research employed qualitative approach based on multiple case study on six S&P 500 companies. The overarching aim of the study was to identify, what roles do focal firms in business play and what strategies do they employ in their specific roles to manage the complexities surrounding their ecosystems. For better understanding of this phenomenon, the theoretical approach combined theories on ecosystems with the view of treating ecosystems as a complex adaptive systems (CAS). For the empirical process, seven thematic themes were developed to understanding the roles and strategies of focal firms and other peripheral actors in the ecosystem. In addition, evaluation matrix was crafted to highlight the robustness, productivity, niche creation, ecosystem size as well as the relational and technological complexities of the case firms’ ecosystems. Finally, a comparison techniques was utilized to identify differences and similarities of the focal firms’ ecosystem orchestration which revealed a relationship between ecosystem orchestration and ecosystem complexity. The results highlighted several strategies employed by the focal firms indicating that ecosystem strategies are not discrete. Furthermore, the results showed that focal firms typically employed multiple roles in managing their involvement in multiple ecosystems. Complementors were also featured in this complex web of interdependency and interconnectedness. Overall, the results indicate that the more complex (both relational and technological) an ecosystem is, the more difficult it is to orchestrate and so focal firms aside leading the ecosystem, also adopt other roles such as complementing and participating in different ecosystems. The reverse is also true. ii ACKNOWLEDGEMENTS This genesis of this thesis initially was as a result of my interest in researching about topics related to open innovation and multi-actor collaborations. However, I had the opportunity to work during summer to assist my supervisor in gathering data for his project. Upon completion of the summer job and with further deliberations and consultations, I was offered the opportunity to work with this rich data in furthering the understanding of the ecosystem concept. Thus, I extend my sincere gratitude to my supervisors Professor Paavo Ritala and Pontus Huotori (D.Sc) for the motivation, mentorship, immense knowledge and continuous support throughout my master thesis. Their relentless guidance and contributions helped me in learning so much which shaped the outcome of this thesis. I would like to express my utmost gratitude to the Almighty God, my parents, wife and other family members for the unconditional support, motivation and sacrifices, without which I would not have been in Finland in pursuit of high education. The list of people I owe appreciation cannot be complete without mentioning Mohammadamin Esmaeili, Agnes Asemokha, Shola Oyedeji, Abubakar Adekori, and the Banire family for their unwavering support. Finally, I am grateful to LUT, all MSIS professors and non-teaching staffs of the university, colleagues and all my friends who supported me throughout my studies in diverse ways. I say a big thank you to all of you. ii LIST OF ABBREVIATIONS AT&T American Telecom and Telegraph Corporation BE Business Ecosystem BRM Better Risk Mitigation CAS Complex Adaptive System CC Commercial Capital CEO Chief Executive Officer DBE Digital Business Ecosystems GE General Electric IFM Improved Forecasting Method IO Industrial Organization IE Innovation Ecosystem IOP Input Oriented Perspective IoT Internet of things ITC Information Technology and Communication OOP Output Oriented Perspective PLC Product-Level Complementarity RBV Resource Based View R&D Research and Development SC Social Capital SMEs Small and Medium-sized Enterprise STD Smart Tradeoff Decisions STEM Science, Technology, Engineering and Mathematics TC Technological Capital UMich University of Michigan iii TABLE OF CONTENTS 1 INTRODUCTION ............................................................................................ 5 1.1 RESEARCH BACKGROUND ........................................................................................ 5 1.2 RESEARCH OBJECTIVE AND RESEARCH GAP ............................................................ 6 1.3 RESEARCH QUESTIONS ............................................................................................ 8 1.4 THEORETICAL APPROACH ........................................................................................ 9 1.5 DEFINITIONS AND DELIMITATIONS ........................................................................ 10 1.6 STRUCTURE OF THE STUDY .................................................................................... 12 2 CONCEPTUAL BACKGROUND ................................................................... 14 2.1 THE ECOSYSTEM ANALOGY ................................................................................... 16 2.2 ECOSYSTEMS AS COMPLEX ADAPTIVE SYSTEMS ..................................................... 25 2.3 ECOSYSTEM STRATEGY ......................................................................................... 28 2.4 MANAGING THE ECOSYSTEM COMPLEXITY ............................................................ 34 3 ECOSYSTEM STRUCTURE AND VALUE CREATION ............................... 39 3.1 LEADERSHIP ROLES ................................................................................................ 39 3.2 COMPLEMENTARY AND PERIPHERAL ROLES .......................................................... 40 3.2.1 How complementors participate in ecosystems ............................................... 43 3.3 ASSESSING THE ECOSYSTEM’S HEALTH ................................................................. 43 4 RESEARCH METHODOLOGY..................................................................... 45 4.1 RESEARCH DESIGN ................................................................................................ 46 4.2 RESEARCH APPROACH AND STRATEGY .................................................................. 49 4.3 CASE SAMPLE SELECTION ...................................................................................... 50 4.4 DATA COLLECTION AND ORGANIZATION METHOD ................................................ 50 4.5 DATA ANALYSIS AND PROCESSING ......................................................................... 51 4.6 VALIDITY AND RELIABILITY .................................................................................. 53 5 RESULTS AND ANALYSIS ........................................................................... 55 5.1 CASE COMPANIES’ DESCRIPTION AND ECOSYSTEM STRUCTURE ............................. 57 5.2 COMPANY DESCRIPTION ......................................................................................... 60 5.3 ECOSYSTEM STRATEGIES AND LEADERSHIP ROLES ............................................... 70 1 5.4 CENTRAL PLAYERS' ROLE IN ECOSYSTEM ORCHESTRATION .................................. 109 5.5 THE ROLE OF COMPLEMENTORS IN ECOSYSTEM HEALTH ...................................... 111 5.6 CROSS-CASE ANALYSIS ....................................................................................... 113 5.6.1 Evaluating the ecosystems of the case firms .................................................. 114 5.6.2 Characteristics of the various ecosystem archetypes .................................... 115 6 Discussions ................................................................................................... 123 6.1 STRATEGIES AS SUCCESS FACTORS FOR ECOSYSTEMS .......................................... 123 7 Conclusion .................................................................................................... 125 7.1 THEORETICAL IMPLICATION ................................................................................. 125 7.2 MANAGERIAL IMPLICATION ................................................................................. 131 7.3 LIMITATION AND FUTURE RESEARCH .................................................................. 134 REFERENCES ...................................................................................................
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