Innovation process in the business ecosystem: the four cooperations practices in the media platform

The main purpose of this research is to construct a generalized set of innovation processes that occur at the ecosystem level based on the academic research. The study analyzes the cultural and creativity-driven over-the-top (OTT) platform that encompasses diverse network of ecosystem members by utilizing the four cooperation practices.,This study begins with the literature review that discusses various topics related to ecosystem (e.g. service innovation, innovative ecosystem). Then, this study introduces a new conceptual framework that describes how cooperations occur in the ecosystem. Finally, a qualitative and explorative case study of the OTT platforms in the global context is conducted.,The application of the framework reveals how co-innovative business ecosystems demonstrate co-evolution through different structures and directions. An ecosystem can evolve by incorporating other industries (i.e. horizontal growth or broadening strategy) to deepen and broaden the industry integration.,As an explorative approach that opens the discussion on how co-innovation and co-evolution occur at the ecosystem level, particularly in the culture and creativity-driven industry, the value of this research extends to other similar industries where diverse actors such as technology firms, Internet firms, direct consumers, government and even the society impact the type of product and service and shape the evolution of the entire ecosystem.

[1]  Suvi Nenonen,et al.  Managing Co‐Creation Design: A Strategic Approach to Innovation , 2015 .

[2]  C. Prahalad,et al.  Co-creation experiences: The next practice in value creation , 2004 .

[3]  Bing-Sheng Teng,et al.  Partner analysis and alliance performance , 2003 .

[4]  Christian Grönroos,et al.  Consumer dominant value creation: a theoretical response to the recent call for a consumer dominant logic for marketing , 2015 .

[5]  S. Evans,et al.  A literature and practice review to develop sustainable business model archetypes , 2014 .

[6]  Willem Selen,et al.  Multi‐dimensional nature of service innovation: Operationalisation of the elevated service offerings construct in collaborative service organisations , 2011 .

[7]  Su Mi Dahlgaard-Park,et al.  Service quality management and ecosystem theory , 2014 .

[8]  A. Payne,et al.  A stakeholder perspective of the value proposition concept , 2011 .

[9]  Joakim Wincent,et al.  Quality Meets Structure: Generalized Reciprocity and Firm-Level Advantage in Strategic Networks , 2010 .

[10]  S. Nambisan,et al.  Entrepreneurship and strategic thinking in business ecosystems , 2012 .

[11]  H. Chesbrough,et al.  Innovating Business Models with Co-Development Partnerships , 2007 .

[12]  Christoph Fuchs,et al.  The Innovation Effect of User Design: Exploring Consumers’ Innovation Perceptions of Firms Selling Products Designed by Users , 2012 .

[13]  Rahul C. Basole Visualization of interfirm relations in a converging mobile ecosystem , 2008, 2008 7th International Conference on Mobile Business.

[14]  E. Trist A Concept of Organizational Ecology , 1977 .

[15]  H. Gemünden,et al.  Network configuration and innovation success: An empirical analysis in German high-tech industries , 1996 .

[16]  Paul A. Pavlou,et al.  Swift Guanxi in Online Marketplaces: The Role of Computer-Mediated Communication Technologies , 2014, MIS Q..

[17]  Darshan A. Desai,et al.  Co‐creating learning: insights from complexity theory , 2010 .

[18]  Marc Rysman The Economics of Two-Sided Markets , 2009 .

[19]  R. Pera,et al.  Motives and resources for value co-creation in a multi-stakeholder ecosystem: A managerial perspective , 2016 .

[20]  E. Weyl,et al.  A Price Theory of Multi-Sided Platforms , 2009 .

[21]  Aaron Schiff,et al.  Open and closed systems of two-sided networks , 2003, Inf. Econ. Policy.

[22]  I. Nonaka,et al.  The Concept of “Ba”: Building a Foundation for Knowledge Creation , 1998 .

[23]  C. Bhattacharya,et al.  The role of corporate social responsibility in strengthening multiple stakeholder relationships: A field experiment , 2006 .

[24]  Kenneth K. Boyer,et al.  Operations Strategy Research in the POMS Journal , 2005 .

[25]  Mateusz Lewandowski,et al.  Designing the Business Models for Circular Economy—Towards the Conceptual Framework , 2016 .

[26]  Michael Etgar A descriptive model of the consumer co-production process , 2008 .

[27]  Raffaele Fiorentino,et al.  Operations strategy: a firm boundary-based perspective , 2016, Bus. Process. Manag. J..

[28]  F. Kodama,et al.  Japanese innovation in mechatronics technology , 1986 .

[29]  Stephen L. Vargo,et al.  Evolving to a New Dominant Logic for Marketing , 2004 .

[30]  Stephen L. Vargo,et al.  Service, value networks and learning , 2010 .

[31]  Raymond T. Sparrowe,et al.  Social Networks and the Performance of Individuals and Groups , 2001 .

[32]  E. Gummesson,et al.  Marketing as Value Co-creation Through Network Interaction and Resource Integration , 2010 .

[33]  P. Maglio,et al.  The Emergence of Service Science: Toward Systematic Service Innovations to Accelerate Co‐Creation of Value , 2008 .

[34]  Susan Fournier,et al.  Brands matter: An empirical demonstration of the creation of shareholder value through branding , 2006 .

[35]  J. Farquhar,et al.  The multi-layered nature of the internet-based democratization of brand management , 2013 .

[36]  M. Christopher,et al.  A strategic framework for integrating marketing and supply chain strategies , 2010 .

[37]  Ricky W. Griffin,et al.  Toward a Theory of Organizational Creativity , 1993 .

[38]  Stephen L. Vargo,et al.  Service-dominant logic: continuing the evolution , 2008 .

[39]  Assessing Unilateral Merger Effects in a Two-Sided Market: An Application to the Dutch Daily Newspaper Market , 2012 .

[40]  Mikko A. Junttila,et al.  A resource-based view of manufacturing strategy and the relationship to manufacturing performance , 2002 .

[41]  Bo Edvardsson,et al.  Co‐creation in Radical Service Innovation: A Systematic Analysis of Microlevel Processes , 2012 .

[42]  J. Rochet,et al.  Two-sided markets: a progress report , 2006 .

[43]  G. S. Dangayach,et al.  Manufacturing strategy: Literature review and some issues , 2001 .

[44]  J. Sheth,et al.  Implications of the Revised Definition of Marketing: From Exchange to Value Creation , 2007 .

[45]  Satish Nambisan,et al.  DESIGNING VIRTUAL CUSTOMER ENVIRONMENTS FOR NEW PRODUCT DEVELOPMENT : TOWARD A THEORY , 2005 .

[46]  B. Hillebrand,et al.  Mechanisms for Stakeholder Integration: Bringing Virtual Stakeholder Dialogue into Organizations , 2012 .

[47]  P. Swamidass,et al.  Assessing Operations Management from a Strategic Perspective , 1989 .

[48]  M. Hatch,et al.  Toward a theory of brand co-creation with implications for brand governance , 2010 .

[49]  Stephen L. Vargo,et al.  The Four Service Marketing Myths , 2004 .

[50]  Maria Antikainen,et al.  A Framework for Sustainable Circular Business Model Innovation , 2016 .

[51]  Christian Kowalkowski,et al.  The co-creative practice of forming a value proposition , 2012 .

[52]  C. Prahalad,et al.  Strategy as stretch and leverage. , 1993, Harvard business review.

[53]  Paul P. Maglio,et al.  Fundamentals of service science , 2008 .

[54]  C. Grönroos Value co-creation in service logic: A critical analysis , 2011 .

[55]  Bing-Sheng Teng,et al.  Alliance Constellations: A Social Exchange Perspective , 2002 .

[56]  Richard Buchanan,et al.  Wicked Problems in Design Thinking , 1992 .

[57]  G. Barczak The Future of NPD/Innovation Research , 2012 .

[58]  Hui Tan,et al.  Knowledge Accession and Knowledge Acquisition in Strategic Alliances: The Impact of Supplementary and Complementary Dimensions , 2009 .

[59]  Ke Rong,et al.  Organizing business ecosystems in emerging electric vehicle industry: Structure, mechanism, and integrated configuration , 2017 .

[60]  María Luz Martín-Peña,et al.  A taxonomy of manufacturing strategies in Spanish companies , 2008 .

[61]  M. Savona,et al.  Policies to enhance the ‘hidden innovation’ in services: evidence and lessons from the UK , 2010 .

[62]  Yong Lin,et al.  Understanding business ecosystem using a 6C framework in Internet-of-Things-based sectors , 2015 .

[63]  Jack A. Nickerson,et al.  The Antecedents and Performance Implications of Cooperative Exchange Norms , 2006, Organ. Sci..

[64]  Anna Sidorova,et al.  Business intelligence success: The roles of BI capabilities and decision environments , 2013, Inf. Manag..

[65]  Sang M. Lee,et al.  Co‐innovation: convergenomics, collaboration, and co‐creation for organizational values , 2012 .

[66]  J. Liedtka Perspective: Linking Design Thinking with Innovation Outcomes through Cognitive Bias Reduction , 2015 .

[67]  M. Armstrong,et al.  Two-sided Markets, Competitive Bottlenecks and Exclusive Contracts , 2004 .

[68]  Chrisanthi Avgerou,et al.  Relational and institutional embeddedness of Web‐enabled entrepreneurial networks: case studies of netrepreneurs in China , 2013, Inf. Syst. J..

[69]  Kumar Rakesh Ranjan,et al.  Value co-creation: concept and measurement , 2014, Journal of the Academy of Marketing Science.

[70]  Ron Adner Match your innovation strategy to your innovation ecosystem. , 2006, Harvard business review.

[71]  Christine Chevallier,et al.  Competitive intelligence, knowledge management and coopetition: The case of European high-technology firms , 2016, Bus. Process. Manag. J..

[72]  Eric Trist,et al.  Referent Organizations and the Development of Inter-Organizational Domains , 1983 .

[73]  Henry Mintzberg Musings on management. Ten ideas designed to rile everyone who cares about management. , 1996, Harvard business review.

[74]  John Hagel,et al.  Formular una estrategia configuradora en un mundo en constante disrupción , 2008 .

[75]  Mark S. Granovetter Economic Action and Social Structure: The Problem of Embeddedness , 1985, American Journal of Sociology.

[76]  J. Quelch,et al.  How global brands compete. , 2004, Harvard business review.

[77]  Jon Mikel Zabala-Iturriagagoitia,et al.  Epigenetic Economic Dynamics: The evolution of big internet business ecosystems, evidence for patents , 2014 .

[78]  E. Jaakkola,et al.  Value co-creation in knowledge intensive business services: A dyadic perspective on the joint problem solving process , 2012 .

[79]  Morton E. O'Kelly,et al.  A geographer's analysis of hub-and-spoke networks☆ , 1998 .

[80]  Wenpin Tsai Knowledge Transfer in Intraorganizational Networks: Effects of Network Position and Absorptive Capacity on Business Unit Innovation and Performance , 2001 .

[81]  J. Füller Refining Virtual Co-Creation from a Consumer Perspective , 2010 .

[82]  Faïz Gallouj,et al.  Innovation in services , 1997 .

[83]  Ron Adner,et al.  Value Creation in Innovation Ecosystems: How the Structure of Technological Interdependence Affects Firm Performance in New Technology Generations , 2009 .

[84]  Ravi Kathuria,et al.  Alignment of strategic priorities and performance: an integration of operations and strategic management perspectives , 2003 .

[85]  A. Payne,et al.  Managing the co-creation of value , 2008 .

[86]  Richard Gyrd-Jones,et al.  Managing the co-created brand: Value and cultural complementarity in online and offline multi‐stakeholder ecosystems , 2013 .

[87]  Nick Bontis,et al.  Key factors that improve knowledge-intensive business processes which lead to competitive advantage , 2018, Bus. Process. Manag. J..

[88]  Janet R. McColl-Kennedy,et al.  Co-creating service experience practices , 2015 .

[89]  Rodrigo Kazuo Ikenami,et al.  Unpacking the innovation ecosystem construct: Evolution, gaps and trends , 2016, Technological Forecasting and Social Change.