How to orchestrate participants of ecosystem to foster innovation: an exploratory analysis on the network level

Abstract

PurposeSmall and medium-sized enterprises (SMEs), typically with limited resources, strive hard to obtain the trust of ecosystem participants as an orchestrator. Accordingly, the firms do not have sufficient legitimacy to persuade other parties to join their networks. This study aims to investigate how an SME operating in the publishing industry orchestrates ecosystem participants. In particular, the study analyzes how the orchestrating firm stimulates interactions among ecosystem participants.Design/methodology/approachCase study research with a qualitative approach has been documented as a well-accepted method for investigating complex phenomena and for theory building. Collected data from various informants and different collection techniques are triangulated to ensure validity. Cross-case analysis to identify common patterns is undertaken as the basis for developing a sound conclusion.FindingsThe study demonstrated what orchestrating firms should do to foster innovations and how they benefit from other participants in the ecosystem. The analysis identified the orchestrator's four roles: entrepreneurship networks, knowledge activation, innovation intermediary and network leadership. Among the four roles, there are interrelationships, and to some degree, these overlap. The orchestrating firm must emerge into the ecosystem and work together with all members of the ecosystem. Managers of the orchestrating firm and network members should collaborate to find the most beneficial configuration for all ecosystem participants.Research limitations/implicationsThis research is limited to the knowledge-intensive publishing industry. The use of specific industries closely related to innovation provides an advantage in the way that enables researchers to conduct depth analysis, but at the expense of generalizability, and therefore, future research can analyze different industries.Originality/valueThis study focuses on networks as the unit of analysis. Previous studies assumed individual firms as the unit of analysis and ignored the fact that companies interact with other companies when pursuing open innovation. The study focuses on the interactions between actors as the unit of analysis and on the role of orchestrators undertaken by an SME.