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2-1 SCM Vs Ecosystems
2-1 SCM Vs Ecosystems
Digital Business
journal homepage: www.elsevier.com/locate/digbus
A R T I C L E I N F O A B S T R A C T
Keywords: While digital transformations are taking place, we still have limited understanding as to how ecosystems and
Ecosystems supply chains differ from a theoretical standpoint and how they relate practically. We study the evolution of the
Supply chains concept of ecosystems through a systematic review of the literature to describe how the two concepts relate
Governance
throughout this evolution. We use cases to investigate how ecosystems and supply chains relate practically. We
show that non-contractual governance in a supply chain facilitates investment in specific assets by a few key
suppliers, while non-contractual governance in an ecosystem facilitates the creation of collective shared assets by
many ecosystem participants. We also show that practically supply chains and ecosystems can either compete or
complement each other and we present some of the conditions for the emergence of such relations.
* Corresponding author.
E-mail addresses: hlegenvre@eipm.org (H. Legenvre), ahameri@unil.ch (A.-P. Hameri), Ruggero.golini@unibg.it (R. Golini).
https://doi.org/10.1016/j.digbus.2022.100029
Received 11 May 2021; Received in revised form 3 June 2022; Accepted 6 June 2022
Available online 11 June 2022
2666-9544/© 2022 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-
nc-nd/4.0/).
H. Legenvre et al. Digital Business 2 (2022) 100029
beyond their distinctive capabilities and market position to further un where articles are selected by the researcher according to the arguments
derstand how cooperating and competing with other firms within their to be supported, a systematic literature review is “top-down” and aims to
business ecosystem could influence their long-term success. With the be an objective and fair representation of the articles published on a
development of digital technologies and the emergence of platform certain topic. What makes our review “systematic” is that we first
business models, ecosystems started to characterize the specific gover defined a research objective, then we defined the search criteria for the
nance mechanism that brings together heterogeneous, but interdepen Scopus query to extract all articles on the topic. Next we defined criteria
dent organizations. The role of an ecosystem is to first to combine to manually review and select only the relevant articles given for our
complementary capabilities to innovate and second to deliver value research objective. Finally, we analysed the contribution of these arti
propositions. Recent conceptualization efforts present ecosystems as a cles to provide theoretical distinction between ecosystem and supply
governance mechanism where multilateral relationships cannot be chain.
reduced to a set of bilateral contracts (Autio and Thomas, 2018; Jaco To find the main contributions in the field, we used Scopus as the
bides, Cennamo, & Gawer, 2018), and where non-contractual gover major source of information. In September 2018 we searched all articles
nance plays a fundamental role.1 These authors suggest ecosystems that containing the word “ecosystem” in the title, abstract and keywords.
differ from supply chains where inter-firm relationships are reduced to Given the purpose of our research, we limited the perimeter to articles
bilateral contracts. written in English and published in business, management and ac
We believe that this distinction is overly reductive and simplistic. It counting journals, hence excluding conference proceedings, books and
reduces supply chains to a series of bilateral transactions and ignores papers in other domains. We did not limit our search in time, so we could
most of the recent academic advancement on the adaptive network logic retrieve contributions as old as the Scopus database (the first paper
and collaborative relationships. Therefore, this conceptualization needs extracted dates back to 1969 in World Energy Resources and it was
to be refined to gain a more precise and rich understanding of how excluded afterwards as it is not about business ecosystems).
complex governance mechanisms orchestrate value creation and value The search resulted in 2284 articles, which were narrowed down
capture across multiple firms. More precisely, we examine two research using an iterative process. First, the articles were split between the re
questions. The first is how ecosystems and supply chains differ from a searchers, and each performed a review based on title, abstract and
theoretical standpoint. The second is how ecosystems and supply chains journal. Articles clearly referring to natural ecosystems2 were directly
relate practically. Even if ecosystems and supply chains differ in theory, excluded, while the dubious ones were discussed on a case-by-case basis.
practically they can compete or complement each other. For instance, the article “Proposal for a framework for quality mea
We believe that answering these research questions is important. In surement to the SPB - Brazilian Public Software”, published in Business
digital transformations the coordination of economic activities becomes Process Management Journal was not retained because the word
increasingly varied and complex. The coordination of economic activ ecosystem is not central to the paper and it is only used once to describe
ities relies on more diverse forms of governance. It is therefore impor the digital ecosystem domain.
tant to describe how these forms of governance differ conceptually, but To validate the manual classification, we also checked that the
also how they can interact together over time. This contributes to selected papers fulfilled at least one of these two conditions:
defining ecosystems and how they function (Autio, 2019; Jacobides
et al., 2018). It also contributes to the development of new language and • Presence of the article in the citation network (i.e., the article cites,
concepts that describe new organizational forms (Miles & Snow, 1986). and is cited by, at least one other article in the sample)
To answer these two research questions, we proceed in two steps. • The word Ecosystem appears in the references3
First, we study the evolution of the concept of ecosystem thanks to a
systematic literature review, this enables us to describe how ecosystems We obtained a corpus of 379 papers which explore or employ, as a
and supply chains relate throughout this evolution. We develop our first theoretical lens, the concept of ecosystem in a business context. As our
four propositions based on a discussion on how non-contractual gover goal is to focus on the literature that has contributed to conceptualize
nance applies to ecosystems and supply chains. Second, thanks to in ecosystems, out of the resulting sample of 379 papers we extracted those
terviews and secondary data collection, we document cases and develop articles that received the most citations by the other papers in the sample
three propositions that illustrate how the concept of ecosystem and (weighing by the year of publication) (see Table 1). These were called
supply chain relate practically. backbone papers as they are more central in the development of the
discipline. The idea of backbone papers is related to the main path
2. Research method analysis proposed by Colicchia and Strozzi (2012), which aims to
identify those papers that build on prior papers and continue to act as an
A systematic literature review is a methodology that follows a clearly authority in reference to later works. The main path is built by selecting
defined protocol and where the criteria are clearly stated before the the papers that are more central, that is, those that have the highest
review in order to identify, select and critically appraise research (Col number of citations by other papers in the sample while citing other
icchia & Strozzi, 2012; Coombes & Nicholson, 2013; Khan, Kunz, papers in the sample. One limitation of this approach is that to be
Kleijnen, & Antes, 2003). Compared to a “standard” literature review, considered in the main path, one paper needs to cite the previous paper
in the main path. In cases when two papers' publication dates are close in
time, they may not cite each other, for instance, due to a lengthy review
1
There are two important notions associated with non-contractual gover process. To overcome this limitation, we used a simpler approach, that
nance. First the governance is not bilateral; one firm can simultaneously exert is, to identify the papers with the highest number of yearly citations
incentives and controls on multiple firms. For instance, when Apple and Google, from the other papers in the sample while checking that they also cite
on their mobile application marketplaces, define different categories of mobile other papers in the sample. This simpler citation-based approach to
applications and provide visibility to certain applications for each category,
they impact all applications. There are also multilateral forms of governance.
For instance, as firms develop research consortiums, they need to take decisions
2
collectively. Second the governance is not contractual; while contracts result e.g., “Monitoring land cover change of the dryland forest landscape of
from the balance of power between different firms, other forms of governance Central Chile (1975–2008)”, published in Applied Geography)
3
contribute to building trust and to achieving mutually beneficial outcomes. The team also checked the papers that did not comply with these two
Referring to the example of the research consortium, this includes, for instance, conditions. Finally, we double checked the papers that were excluded, but that
the development of information exchange, social ties, and long-term contained words that were common in the selected papers (i.e., platform,
relationships. innovation) in the title, abstract or keywords.
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H. Legenvre et al. Digital Business 2 (2022) 100029
Table 1
Backbone papers.
Authors Title Year Source title Internal citations
per year
Moore J.F. Predators and prey: a new ecology of competition. 1993 Harvard Business Review 3.1
Iansiti M., Roy L. Strategy as Ecology 2004 Harvard Business Review 4.1
Teece D.J. Explicating dynamic capabilities: The nature and micro foundations of 2007 Strategic Management 3.1
(sustainable) enterprise performance Journal
Adner R., Kapoor R. Value creation in innovation ecosystems: How the structure of technological 2010 Strategic Management 8.0
interdependence affects firm performance in new technology generations Journal
Kapoor R., Lee J.M. Coordinating and competing in ecosystems: How organizational forms shape new 2013 Strategic Management Journal 3.2
technology investments
Gawer A., Cusumano Industry platforms and ecosystem innovation 2014 Journal of Product 5.6
M.A. Innovation Management
Thomas L.D.W., Autio Architectural leverage: Putting platforms in context 2014 Academy of Management 3.0
E., Gann D.M. Perspectives
Lusch R.F., Nambisan S. Service innovation: A service-dominant logic perspective 2015 MIS Quarterly: Management 5.8
Information Systems
Vargo S.L., Wieland H., Innovation through institutionalization: A service ecosystems perspective 2015 Industrial Marketing 5.8
Akaka M.A. Management
Vargo S.L., Lusch R.F. Institutions and axioms: an extension and update of service-dominant logic 2016 Journal of the Academy of 11.0
Marketing Science
Adner R., Kapoor R. Innovation ecosystems and the pace of substitution: Re-examining technology S-curves 2016 Strategic Management Journal 3.3
Vargo S.L., Lusch R.F. Service-dominant logic 2025 2017 International Journal of 4.0
Research in Marketing
identify the key papers can be found in other systematic literature re
Table 2
views (e.g., Coombes & Nicholson, 2013; De Marchi, Di Maria, Golini, &
Interviews.
Perri, 2020).
Among these influential papers we selected those that provide Case 1: Ecosystem and supply chain coexist and compete
Software industry A software developer involved in the ecosystem
comprehensive definitions of ecosystems. This led us to identify six
A software distributor manager
backbone papers (in bold characters in Table 1) that have made a sig A software user
nificant contribution to the development of the ecosystem theory and Case 2: An ecosystem of service providers complements a supply chain
that are widely cited by the other papers in the sample. We also Automotive industry A car maker executive
A first-tier supplier executive
considered other papers published by the authors of the backbone pa
A garage owner
pers that contribute to defining the word ecosystem. Case 3: A supply chain complements an ecosystem that develops technologies
Our analysis of the literature shows that the conceptualization of IoT technologies and An IoT application provider executive
ecosystems has evolved over time. The ecosystem was not established as applications One of the founders of the organizations that
a solid theoretical foundation before the years 2010s, it was an analogy orchestrates the ecosystem
Microprocessor Two managers from two different firms that contribute
that helped to depict changes in a firm's environment. By investigating
technology to the technology development ecosystem and offer
how the keywords associated with the 379 papers evolved over time, we products based on the technology
therefore broke the conceptualization of ecosystems down into four A manager in the not-for-profit organization that
stages. Each stage is anchored in some of the backbone papers. The orchestrates the ecosystem
characterization of the four stages enabled us to understand why the
concept of ecosystem was needed and to develop four propositions that
across industries. This stage corresponds to Moore (1993, 1996, 2006)
describe the relation between ecosystems and supply chains. However,
and Iansiti and Levien (2004a, 2004b). For Moore (1993, 1996) the
as the literature has not yet addressed the question of how ecosystems
success of innovative firms depends on their ability to mobilize re
and supply chains relate from a practical standpoint, we use interviews
sources owned by other organizations such as partners, suppliers or
and secondary data collection to document cases and extend our un
customers. Moore suggests shifting the locus of strategic analysis from a
derstanding on this matter.
firm's industry to its business ecosystem that crosses various industries.
Three specific relationships could be observed in/among/between
Firms cooperate and compete within an ecosystem, while ecosystems
the industries we selected. First, we looked for industries where an
compete against each other. He sees such ecosystems evolving from a
ecosystem and a supply chain could coexist and compete. Then we
dispersed group of organizations to a more structured community.
looked for industries where an ecosystem of service providers could
Throughout the lifecycle of an ecosystem (Moore, 1993) firms jointly
complement a supply chain that delivers a product. Finally, we looked
define new value propositions, collaborate to scale up supply, and
for industries where an ecosystem could design technologies that are
improve the complete offer together before searching for opportunities
later assembled by a supply chain. The analysis of these three relation
to renew their value propositions. Throughout this lifecycle, firms also
ships led us to develop three more propositions. Table 2 provides details
compete as they protect their ideas from others, focus on defeating
on the interviews conducted to develop the cases. All interviews were
imitations, and try to maximize their profit share and to create entry
aimed at describing how the ecosystem and the supply chain function
barriers to protect their positions. The broad and dynamic strategic
and relate and they all lasted 30 to 45 min.
perspective proposed by Moore has resonated with practitioners since
his first papers.
3. Ecosystems: A systematic review of the literature
Iansiti and Levien (2002, 2004a, 2004b), Iansiti & Lakhani (2017)
have broadened Moore's perspective. For them, the success of a firm
3.1. Stage one: The ecosystem as an interpretative lens
depends on the success of its business ecosystem, which extends beyond
the boundaries of its industry. They define ecosystems as a large number
Ecosystems and more specifically business ecosystems have emerged
of loosely interconnected participants who depend on each other for
in the normative literature as an interpretative lens used to strategize
their mutual effectiveness and survival. Ecosystems can even bring
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H. Legenvre et al. Digital Business 2 (2022) 100029
together hundreds of organizations in the design, production, distribu They describe ecosystems as combining both suppliers and com
tion, or implementation of even a single product (Iansiti & Levien, plementors (see Fig. 1). Suppliers provide the components that are in
2004a, 2004b). This includes immediate suppliers, partners and cus tegrated in a firm's product, while complementors provide product
tomers together with more distant technology providers or regulatory complements to the product clients. A classic example of a com
agencies. From a strategic standpoint, systematically identifying other plementor for plane manufacturers is airports. Plane manufacturers sell
organizations critical to a firm's current and future success is essential. their products to airlines who use them in conjunction with airports.
Within an ecosystem, firms can take on diverse roles. One role is the Through the study of a single industry over 43 years - the semi
keystone or hub organization which captures a significant share of value conductor lithography equipment industry - Adner and Kapoor (2010)
across the ecosystem by promoting its health and stability. The keystone show that technology leaders enhance their competitive advantage
organization cultivates the ecosystem's attractiveness by offering other when suppliers innovate, while they see their competitive advantage
firms some means of being productive and successful. eroded when complementors innovate. This study positions ecosystems
In summary, Moore (1993, 1996, 2006) together with Iansiti and within academic literature by suggesting a significant distinction be
Levien (2002, 2004a, 2004b), Iansiti and Levien (2017, 2018) have tween suppliers and complementors in terms of performance impact.
established the concept of the business ecosystem. Their contribution is Adner and Kapoor (2010) encourage practitioners to create innovation
first centred on performing strategic analysis. Business ecosystems are with complementors. Their study describes ecosystems as encompassing
an interpretative lens that identifies strategic interdependencies across suppliers, and focuses attention on complementors.
multiple organizations spanning multiple industries. These authors Teece (2007, 2012, 2018a) as well as Adner and Kapoor (2010) have
suggest that strategic actions can be undertaken throughout the lifecycle significantly contributed to position the ecosystem as a prime theoretical
of an ecosystem and that key roles, such as keystone or hub organiza concept. Suppliers remain part of a firm's ecosystem in these contribu
tions, can be adopted within an ecosystem. They also highlight the tions, but complementors take a more central position within the
importance of nurturing the ecosystem attractiveness. ecosystem theory for Adner and Kapoor (2010).
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H. Legenvre et al. Digital Business 2 (2022) 100029
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H. Legenvre et al. Digital Business 2 (2022) 100029
On the contrary, firms which exert control over key resources along a reinforced by trust building mechanisms; and third, cognitive aspects as
supply chain tend to develop offerings made of proprietary resources some activities can favour the emergence of shared goals, norms and a
and interfaces (Teece, 2007). While firms might favour modularity to common language. While non-contractual governance in supply chains
achieve economies of scale (Gawer & Cusumano, 2014), they try to limit strengthens relationships with a few key suppliers to address asset
the possibilities for complementors to openly access their products. specificity situations and dependency risks, non-contractual governance
Typically, a battery manufacturer provides mobile phone companies in ecosystems aims to attract a multitude of complementors to enhance
with hard to imitate proprietary components. Having proprietary com the value of the ecosystem. Within an ecosystem, non-contractual
ponents that cannot be easily interchanged facilitates extracting value mechanisms are used to attract complementors so they participate in
from the product. Additionally, leading mobile phone manufacturers the ecosystem and enhance the value of the platform's shared asset
tend to impose proprietary interfaces to extract more value from ac (Cennamo & Santaló, 2019), the collective value of the platform and its
cessories and repair activities. ecosystem. As Google provides Android to many mobile phone manu
Our second proposition is therefore formally stated in what follows.. facturers, it is rather easy to promote the value of the Android ecosystem
to developers. As mobile phone companies use Android, developers can
Proposition Two. Ecosystems support platforms built around
be sure that their applications will be accessible to many users. Other
modular technical systems with a sizable degree of openness,
trust building mechanisms can include visibility given to the launch of
whereas supply chains support products characterized by pro
high-profile games on a gaming platform. Therefore, further users can be
prietary resources and interfaces.
attracted to the platform and its reputation enhanced (Rietveld, Schil
Adner (2017), Jacobides et al. (2018) and Thomas and Autio (2019) ling, & Bellavitis, 2019). Similarly, in open-source ecosystems, many
claim that ecosystem governance cannot be reduced to bilateral con participants invest in promoting the value of the project they contribute
tracts. Jacobides et al. (2018) associate supply chains with bilateral to. As high-profile members join an open-source project extensive
contracts that govern price and quantity (Jacobides et al., 2018). While communication takes place which reinforces the trust of ecosystem
these research associate supply chain with arms-length market trans participants. Trust building mechanisms foster the development of
action, contracts also provide incentive and control mechanisms that shared goals and create a sense of reciprocal obligation.
reduce the risks associated with market transactions (Noteboom, 1996). Our fourth proposition is therefore formally stated in what follows.
As bilateral contracts also exist within ecosystems, we need to clarify
Proposition Four. Non-contractual governance in an ecosystem
their role. Bilateral contracts established between platform owners and
aims to attract numerous complement providers who collectively
complementors allow platforms to establish the access conditions to the
increase the value of the platform's shared assets, whereas non-
platform and to capture value. In the video game industry, which is a
contractual governance in supply chains focuses on a limited
prolific source of data for research on platforms and ecosystems (Cen
number of key suppliers by positively impacting investment in
namo & Santalo, 2013; Ozalp, Cennamo, & Gawer, 2018;), multiple
specific assets.
types of contracts and legally binding agreements exist between the
platforms and the complement providers. Contracts formalize the access Our systematic review of the literature enabled us to understand the
conditions to a platform (Boudreau, 2010) including revenue sharing evolution of the ecosystem concept. We then critically reviewed the use
schemes by which the platform takes a share of the sales made by of non-contractual governance for both ecosystems and supply chains.
complement providers. Contracts also govern access to resources such as Our first four propositions […]. Based on the above four propositions we
development kits and certification schemes used by developers to ensure conclude that ecosystems are best suited for dynamic business envi
technical inter-operability and to force complementors to respect certain ronments and rapidly evolving technical systems. Ecosystems support
rules. Finally, contracts provide access to marketing services offered by platforms built around modular technical systems with a sizable degree
the platform as a complementary offering to regulate for instance how of openness. In ecosystems, bilateral contracts govern access conditions
the brand of the platform can be used by complementors and can also to to the platform. Non-contractual governance in an ecosystem aims to
specify access conditions to specific advertising solutions for com attract numerous complement providers who collectively increase the
plementors. Similar types of binding agreements exist for mobile apps value of the platform's shared assets.
(Oh, Koh, & Raghunathan, 2015). Supply chains are best suited for predictable business environments.
Platforms can collect revenue from complementors using these Supply chains support products characterized by proprietary resources
contracts. In return, platforms grant complementors access to the shared and interfaces. In a supply chain, bilateral contracts govern prices and
resources provided by the platform while maintaining some technical quantities. Non-contractual governance in supply chains focuses on a
and commercial controls. limited number of key suppliers by positively impacting investment in
Our third proposition is therefore formally stated in what follows. specific assets.
The four propositions are summarized in Table 4, which compares
Proposition Three. In a supply chain, bilateral contracts govern
ecosystems and supply chains from a theoretical standpoint.
the price, quantity and risk associated with market exchanges,
whereas in ecosystems bilateral contracts govern a broader set of
5. How ecosystems and supply chains relate practically
access conditions to the platform.
Jacobides et al. (2018) and Thomas and Autio (2019) reduce supply Two forms of governance can differ theoretically, but they can relate
chains to arm's length bilateral contracts. However, supply chains can practically. Therefore, even if ecosystems and supply chains differ in
also display non-contractual forms of governance, especially for the key theory, practically they can relate. We have identified three types of
relationships that govern access to specific assets and dependency relationships between ecosystems and supply chains. First, ecosystems
situations. and supply chains can coexist and compete. Second, an ecosystem can
Scholars have used the social capital theory developed by Nahapiet complement a supply chain by delivering multiple services after a
and Ghoshal (1998) to show the impact of non-contractual mechanisms product is sold on a market. Third, a supply chain can complement an
on performance in supply chains (Adler & Kwon, 2002; Krause, Hand ecosystem by mixing and matching technologies within a product. In
field, & Tyler, 2007; Kwon & Suh, 2004; Li, Ye, & Sheu, 2014; Matthews such cases the ecosystem develops the technologies. We use short cases
& Marzec, 2012). Social capital theory includes three mechanisms: first, from diverse industries that were developed out of interviews and sec
structural aspects as the strength of ties in a supply network can be ondary data to show that such relationships exist. We also suggest some
reinforced though socialization and information exchange; second, of the conditions allowing practical relationships between ecosystems
relational aspects as the quality of inter-firm relationships can be and supply chains to emerge. Then we develop three additional
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H. Legenvre et al. Digital Business 2 (2022) 100029
Table 4 Eisenhardt (2018). Among the firms they studied, the product (solar
How supply chains and ecosystems differ. panels) does not provide differentiation factors. The source of market
ECOSYSTEM SUPPLY CHAIN advantages comes from the relationships with complementors who
provide sales, financing and installation solutions. Among the five
Environment Governance mechanism for Governance mechanism for
dynamic business predictable business competing firms studied in the research, the two which experienced
environments characterized environments where a firm rapid growth had either invested in complementors or established
by complex and rapidly can exert significant control partnerships with large and successful complementors. Other firms
evolving technical systems. over key resources along a which had kept an arm's length relationship with some of the com
supply chain.
Offering Platforms, modular technical Product characterized by
plementors did not experience growth. In this case, the two governance
systems with a sizable degree proprietary resources and forms (i.e., supply chains and ecosystems) exist during a transitory phase
of openness interfaces until one gains a dominant position on the market. Consequently, an
Role of contractual Govern access to platforms Govern price, quantity, and ecosystem can compete with supply chains at least during a transition
governance and their shared resources risk along the supply chain
period.
mechanism
Role of non- Attract large number of Manage access to specific Our fifth proposition is therefore formally stated in what follows..
contractual complementors assets with a limited number
Proposition Five. Practically, supply chains and ecosystems can
governance within the ecosystem. of key suppliers
mechanism Enhance the collective value Allow privileged access to coexist and compete in a market. This is possible either during a
of the platform and its shared key resources by the buying transition period until a dominant form of governance emerges, or
assets firm. it can endure as none of the governance mechanisms represent a
distinctive advantage on the market.
propositions. The short cases were developed through the compilation of In the second relation, we looked at how an ecosystem can comple
secondary data from trade magazines or company websites. They were ment a supply chain along two stages of a product lifecycle. During the
then completed with interviews of industry representatives. For the 3D first stage, a firm establishes a supply chain to design and deliver specific
modelling, animation, and game design case we interviewed a software products to clients. In the second stage, services complementary to the
developer and a user of these products. For the automotive case we product are offered to clients by an ecosystem of firms. In line with our
interviewed three industry representatives: one executive from an OEM, first three propositions, this ecosystem is characterized by a wide array
one from a first-tier supplier and a garage manager. For the RISC V of complementors and by shared resources used by these com
ecosystem, seven interviews were conducted with different ecosystem plementors. To study this practical relationship, we looked for empirical
members. The interviews were used for another research project fully evidence within an industry where multiple service providers are
focused on the RISC V ecosystem. The interviews lasted between 30 and needed to either install or maintain the product after it was delivered to
90 min. The number of interviews and their length were commensurate the client. We found that within the automotive industry, the design
with the complexity of each ecosystem and supply chain, and the depth manufacturing and sales of new vehicles are performed by a supply
of analysis we needed to achieve. chain, whereas aftermarket activities are performed by an ecosystem of
In this software segment, many product benchmarks and product complementors. Gawer and Cusumano (2014) suggest that the supply
comparisons available online show that Cinema 4D from Maxon and chain characterizes the automotive industry. A new vehicle results from
Blender are competing options for users. Cinema 4D is sold by a com a complex division of labour along a supply chain where car manufac
pany named Maxon, which has established a supply chain to deliver the turers have multiple first-tier suppliers and these suppliers in turn have
product to users. Maxon use bilateral contracts to hire resources to work multiple suppliers of components and raw materials. Supply chains
on the development of the software and then they can sell the software design and deliver new vehicles whereas the automotive aftermarket is
to a distributor who can package it for clients along with additional organized differently. Multiple firms complement the vehicles delivered
services. In the same product and market segment, Blender is an open- by car makers by offering repair and maintenance services. The auto
source software that leverages an ecosystem. In 2002, the “Free motive aftermarket is best described as an ecosystem that is comprised
Blender” crowdsourcing campaign orchestrated by the non-profit of a diverse group of complementors. Hammant, Disney, Childerhouse,
Blender Foundation collected €100,000 allowing to release Blender as and Naim (1999) and Breitschwerdt, Cornet, Kempf, Michor, and
a community based open-source project. Add-ons are created by an Schmidt (2017) have shown that complementors include aftermarket
ecosystem made up of individuals, but a few companies, such as Ubisoft parts providers, accessories providers, wholesalers, local retailers, fast
and Epic Games or organizations such as NASA, also use Blender and fit solution providers, independent garages, and specialist garages.
contribute to its development. Our analysis of Maxon and Blender shows During the design of a vehicle the car maker contracts with a few first-
that a supply chain (Maxon) and an ecosystem (Blender) can compete. tier suppliers that design and produce parts which are integrated in
None of these organizations have yet created decisive advantages in the vehicle. However, the first-tier suppliers create and control the
terms of cost or in functionalities offered to clients. Consequently, no complementary diagnostic equipment, software, and tools necessary to
governance form has the upper hand. Neither collective shared assets, diagnose and repair a vehicle in the aftermarket. Thanks to the control of
nor investment in complementary assets create advantages. Two these capabilities, first-tier suppliers can develop and orchestrate a large
different governance forms can therefore coexist. This is best described group of partners which deliver complementary services. The ecosystem
as the result of a historical development and of path dependence pro of complementors uses the brand, equipment, software, and tools pro
cesses. The two governance forms have evolved differently, but neither vided by the first-tier supplier to deliver maintenance and repair ser
has a dominant position. A specialist of this software, who we inter vices, which allows the first-tier supplier to capture a solid share of the
viewed, commented on the case: “You will find some people who are automotive aftermarket.
very keen to have an open-source model available on the market and Our sixth proposition is therefore formally stated in what follows.
others who have been trained on a proprietary software and would never
Proposition Six. Ecosystems and supply chains can coexist and
consider to switch to another tool. This creates two communities that in
complement each other within a product lifecycle. An ecosystem
some ways ignore each other.” The co-existence of two different forms of
can deliver services after a product is sold on a market. This is
governance is a path dependency in governance structures; a phenom
possible as complementary capabilities provide the meansto
enon identified by Heide (1994) and De Reuver and Bouwman (2012).
establish an ecosystem of partners.
A second source of anecdotal evidence is provided by the study of the
transformation in the nascent solar panel industry by Hannah and In the third relation we looked at how supply chains can complement
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H. Legenvre et al. Digital Business 2 (2022) 100029
an ecosystem along two stages of a product lifecycle. During the first The three propositions are summarized in Fig. 2. Supply chains are
stage, an ecosystem of firms collaborates on technology development represented by the three triangles and ecosystems by the multiple cir
activities. In the second stage, firms assemble multiple products from cles. The three diagrams illustrate the three propositions described
this pool of technologies. In line with our first three propositions, the above. First, supply chains and ecosystems can coexist and compete
ecosystem is characterized by a wide array of complementors which within a market either during a transition period or for a longer time if
create shared resources, and technologies that are accessible to all users none of the governance mechanisms provides a distinctive advantage on
and complementors. We considered some ecosystems that are classified this market. Second, an ecosystem can complement a supply chain after
as production side ecosystems by Jacobides et al. (2018). We found that a product is sold on a market. This requires controlling the comple
within the IoT and the processor sectors, the development of a tech mentary capabilities necessary to establish an ecosystem of partners.
nology can be performed by an ecosystem, whereas the product design Finally, a supply chain can complement an ecosystem. The ecosystem
and manufacturing is performed by a supply chain. designs technologies that are later mixed and matched along a supply
According to Teece (2018b), in the digital economy, enabling tech chain to create a wide array of applications.
nologies and standards serves as the foundation for multiple applica
tions across industries. Therefore, when such enabling technologies and 6. Managerial implications
standards are developed by an ecosystem, multiple supply chains can
subsequently be designed. The Internet of Things is one instance of low- Some managerial recommendations can be derived from the present
power wide-area networks; where technologies can be interfaced around investigation of how ecosystems and supply chains differ theoretically
standards to create a broad diversity of applications including precision and relate practically. As many companies focus on leveraging digital
agriculture, intelligent logistics, smart infrastructures, utilities, and technologies to move from a product strategy to a platform strategy, we
cities. The ecosystem designs the technological foundations on which a position our managerial implication within this context. We invite ex
specific product architecture can be developed. One of our informants ecutives who operate supply chains to review the complete lifecycle of
told us that in this field, it is very important to test the interoperability of their products and assess where, along their supply chain, digital tech
different technologies prior to the development of applications. The nologies can create a dynamic business environment characterized by
ecosystem provides an open architecture together with some key hard complex and rapidly evolving technical systems. They can then assess
ware and software components, so new supply chains can be built upon opportunities to leverage an ecosystem. First, they should assess if they
them to provide specific applications. can convince many firms to collaborate around an open architecture to
Another example of enabling technologies comes from the micro design technologies that are accessible to all. Second, they can assess if
processor industry where over 2000 firms and organizations have they can control the capabilities required to build a platform and
established an ecosystem that creates complementary technologies to orchestrate a wide ecosystem of complementors. If they comply with one
the RISC V open standard; an instruction set architecture for processors. of the criteria above, they need to design effective governance mecha
In this case, the ecosystem designs multiple complementary technolo nisms. To orchestrate the ecosystem, they should first be prepared to use
gies to the standard, and these are later mixed and matched to deliver a contractual governance to control access to the shared resources of the
wide array of domain-specific processors. Technologies are created by platform. Second, they should be prepared to use a non-contractual form
the ecosystem whereas the final products and applications are integrated of governance, such as social capital to attract a large number of com
in, and delivered, by supply chains. plementors within the ecosystem and enhance the collective value of the
Our seventh proposition is therefore formally stated in what follows.. platform and its shared assets.
Proposition Seven. Ecosystems and supply chains coexist and
7. Conclusion
complement each other by having an ecosystem that designs
technologies which are later delivered by supply chains. This is
Moore's (1993) concept of the ecosystem has shaped the language of
possible as multiple technologies can be mixed and matched to
practitioners. They have used this semantic resource to broaden the
create a wide array of applications.
locus of their strategic analysis beyond single industries. The emergence
of platforms has anchored ecosystems in a reality made of open in
terfaces and complementors. Recently, scholars have carved a specific
conceptual space for ecosystems among other forms of governance
structures. Our article contributes to this effort by offering seven specific
propositions that illustrate how ecosystems and supply chains differ
theoretically and relate practically.
The seven propositions were developed over a two-stage research
process. First, we performed a systematic literature review to analyse the
evolution of the ecosystem concept. This allowed us to describe how
ecosystems and supply chains relate theoretically throughout this evo
lution. Our first four propositions were developed according to a dis
cussion on how non-contractual governance applies to both ecosystems
and supply chains. Second, thanks to interviews and secondary data
collection, we documented cases that illustrate how the concept of
ecosystems and supply chains relate practically. Consequently, another
three propositions were then developed.
Our findings can be summarized as follows. Ecosystems are gover
nance mechanisms that are well fitted to dynamic business environ
ments and rapidly evolving technical systems. Ecosystems are at the core
of platforms that are built around modular technical systems with a
sizable degree of openness. Within ecosystems, bilateral contracts
govern access conditions to the platform while non-contractual gover
nance increases the value of the platform's shared assets by attracting
Fig. 2. How ecosystems and supply chains relate practically. numerous complement providers. On the other hand, supply chains are
8
H. Legenvre et al. Digital Business 2 (2022) 100029
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Declaration of Competing Interest doi.org/10.1111/j.1745-493X.2004.tb00165.x
Li, Y., Ye, F., & Sheu, C. (2014). Social capital, information sharing and performance:
Evidence from China. International Journal of Operations & Production Management,
The authors declare that they have no known competing financial 34, 1440–1462. https://doi.org/10.1108/IJOPM-03-2013-0132
interests or personal relationships that could have appeared to influence Matthews, R. L., & Marzec, P. E. (2012). Social capital, a theory for operations
the work reported in this paper. management: A systematic review of the evidence. International Journal of Production
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