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Cited by 150Digital Platforms and EconomicsInnovation and Knowledge ManagementService and Product Innovation

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

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Stonig, Joachim, Schmid, Torsten, Müller‐Stewens, Günter·2022·Strategic Management Journal
DOI 10.1002/smj.3390
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Abstract

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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Authors
Stonig, J., Schmid, T., & Müller‐Stewens, G.
Affiliations
University of St.Gallen (CH)
Corresponding author
Stonig, Joachim
ORCID
Stonig, Joachim
Venue
Strategic Management Journal
Publisher
Wiley
Published
2022-02-24
Volume
43
Issue
9
Pages
1927-1957
ISSN
  • 0143-2095 (ISSN-L)
  • 1097-0266
DOI
10.1002/smj.3390
OpenAlex
W4212938058
Cited by
150
References
77
Citations by year
2026: 44 · 2025: 37 · 2024: 37 · 2023: 26 · 2022: 5 · 2021: 1
FWCI
19.61
Type
journal article
Language
en
Open access
Licence
Locations
  • Strategic Management Journal (publishedVersion, cc-by)
  • Alexandria (UniSG) (University of St.Gallen) (acceptedVersion)
  • Alexandria (UniSG) (University of St.Gallen) (submittedVersion)
Topics
  • Social Sciences › Business, Management and Accounting › Strategy and Management › Digital Platforms and Economics
  • Social Sciences › Business, Management and Accounting › Strategy and Management › Innovation and Knowledge Management
  • Social Sciences › Business, Management and Accounting › Marketing › Service and Product Innovation
Keywords
digital ecosystems, product systems, activity systems, modularization, platform strategy, open interfaces, ecosystem orchestration, machine-building industry, ecosystem leadership, strategic change

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