Coordinating and competing in ecosystems: How organizational forms shape new technology investments
Article first published online: 21 AUG 2012
Copyright © 2012 John Wiley & Sons, Ltd.
Strategic Management Journal
Volume 34, Issue 3, pages 274–296, March 2013
How to Cite
Kapoor, R. and Lee, J. M. (2013), Coordinating and competing in ecosystems: How organizational forms shape new technology investments. Strat. Mgmt. J., 34: 274–296. doi: 10.1002/smj.2010
- Issue published online: 22 JAN 2013
- Article first published online: 21 AUG 2012
- Accepted manuscript online: 26 JUL 2012 08:38AM EST
- Manuscript Revised: 24 JUL 2012
- Manuscript Received: 16 AUG 2010
- firm boundaries;
- technology investment;
- business ecosystem;
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. Copyright © 2012 John Wiley & Sons, Ltd.