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Managing the Ecosystem

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  • From RBV to RVF Resource-based View: Firm as consisting of multiple business units/subsidiaries but operating in isolation Rent creation through resources possessed or controlled by the focal firm Relational View of the firm: Conception of the firm as being embedded in a web of relationships (network) Rent creation through resources shared between network members
  • Concept of relational rents Relational rents are supernormal profits jointly generted in an exchange relationship that cannot be generated by either firm in isolation
  • Sources of realtional rents Complementary Resource Endowment: Modularity of network and dual network strategy Interfirm Knowledge Sharing Routines: Regular working group meetings and use of Windchill PLM System Interfirm Relation-specific assets: Integrated development and manufacturing Effective Interfirm Governance: Dediacated network management function and clear contractual arrangements
  • Opportunities and threats of innovating in networks Opportunities: Enable learning Increase responsiveness Reduce uncertainty Save time Threats Build capabilities Protect IP Control the development Control the cost
  • Dual network strategy Quality performers for components with high customer value Cost leaders for components with low impact on customer value
  • The ecosystem lens The ecosystem is defined by the alignment structure of the multilateral set of partners that need to interact in order for a focal value proposition to materialize
  • Critical network management processes Knowledge mobility: Needs to be made available wherever required to promote value creation Value appropriability: Value created needs to be captured and distributed failry among ecosystem members avoiding problems of free riding and opportunistic behaviour (trust, procedural justice, joint asset ownership Ecosystem stability: Stability of ecosystem is a requirement for effective value extraction from collaborative activities - ecosystem reputation, anticipated future gains, multiplexity
  • Mobility of knowledge Tacit: Negotiation of specifications Explicit: PLM Software (smart, connected, complete, flexible)
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