Ecological determinants of smart home ecosystems: A coopetition framework

Abstract

Nearly every industry classification is experiencing slow growth and increasing concentration. Seldom do researchers have an opportunity to observe an emerging industry segment with as much promise as the smart home ecosystem, an exponentially growing industry. The study presents a novel approach using industry life cycle model and a coopetition framework to understand the process of the ecosystem development. Building on recent literature suggesting companies that purposefully match strategy to life cycle stage, the paper describes the strategic motivations and critical factors involved in the competition-based evolution of smart home ecosystems from early to growth phases, leading to a decision among the largest competitors to engage in coopetition. Following life cycle theory, in a mature phase, we forecast companies will attempt to differentiate by leveraging their brands, services, and bundles to drive differentiation. The standardization discussed in industry life cycle research is complemented by using the collaboration model required for complex and highly integrated systems. We provide four propositions and discussion of implications for future research and practice.