From open business model to ecosystem business model: A processes view

Abstract

A central and underexamined phenomenon in the growing literature on business models is: how firms pursuing platformization transform their open business models to create an ecosystem-based business model and ecosystem business model. While an open business model focuses mainly on searching and integrating external knowledge to address key aspects of a firm's value proposition and offerings, an ecosystem-based business model refers to how a firm adjusts the critical components of its business model according to its position, role, and links in the ecosystem. However, an ecosystem business model involves activities and offerings from ecosystem actors that should be aligned to materialize a general value proposition. This platformization requires a profound yet little understood view on how firms transform business models through cognitive and managerial processes. To address this research gap, we employ a multiple-case study approach in four large firms. This study identifies a new business model transformation process consisting of three phases: 1) broadening view, 2) integrating, and 3) orchestrating. Our findings contribute to the literature by demonstrating the unique cognitive and managerial processes related to shaping the emergence of the ecosystem business model while simultaneously transforming the firm's business model to operate in ecosystems.