Economics at your fingertips  

Digital ecosystems and their implications for competitive strategy

Mohan Subramaniam ()
Additional contact information
Mohan Subramaniam: Boston College

Journal of Organization Design, 2020, vol. 9, issue 1, 1-10

Abstract: Abstract This paper discusses some implications for competitive strategy when business environments are framed as digital ecosystems. Digital ecosystems are ecosystems shaped by interdependencies initiated through data connectivity, galvanized by technologies such as sensors and the Internet of Things (IoT). They are composed of two parts: production and consumption ecosystems. Production ecosystems are founded upon interdependencies associated with value chains. Although their underlying interdependencies are traditional, they gain fresh impetus because of data connectivity. Consumption ecosystems on the other hand are spawned by interdependencies among entities that complement the data generated by product usage. These are largely new interdependencies that did not exist before modern digital technologies enabled connectivity. Taken together, digital ecosystems influence a firm’s strategic landscape. I discuss three implications of digital ecosystems for competitive strategy: (1) the scope of value creation, (2) the scope of competition, and (3) the rise of digital monopoly power. I also discuss the implications of digital ecosystems for organizational design and suggest how studies can assess the processes driving the digitization of ecosystems.

Keywords: Digital ecosystems; Competitive strategy; Platforms (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) Abstract (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from

DOI: 10.1186/s41469-020-00073-0

Access Statistics for this article

Journal of Organization Design is currently edited by Børge Obel and Charles C. Snow

More articles in Journal of Organization Design from Springer, Organizational Design Community
Bibliographic data for series maintained by Sonal Shukla ().

Page updated 2020-09-04
Handle: RePEc:spr:jorgde:v:9:y:2020:i:1:d:10.1186_s41469-020-00073-0