Coordinating and competing in ecosystems: How organizational forms shape new technology investments

Rahul Kapoor, Joon Mahn Lee

Research output: Contribution to journalArticle

143 Citations (Scopus)

Abstract

We consider firms in the context of their business ecosystems and explore how differences in the ways in which firms are organized with respect to complementary activities affect their decision to invest in new technologies. We argue that, in addition to creating differences in incentives and bureaucratic costs, firm-complementor organizational form plays an important role in the firm's ability to coordinate accompanying changes in complementary activities so as to shape the benefits from investing early in the new technology. We test our predictions in the U.S. healthcare industry from 1995-2006. The study makes a strong case for viewing firms' competitive strategies in the context of their business ecosystems and for the existence of an important link between firms' coordination choices and their strategic investments.

Original languageEnglish
Pages (from-to)274-296
Number of pages23
JournalStrategic Management Journal
Volume34
Issue number3
DOIs
Publication statusPublished - 2013 Mar

Keywords

  • alliances
  • business ecosystem
  • complementors
  • firm boundaries
  • technology investment

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management

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