Abstract
During periods of discontinuous technological change (DTC), firms seek alliances to obtain new resources and competences. The concept of innovation ecosystems is increasingly used to address joint value creation endeavours. Interactions within an innovation ecosystem are typically organized around a technology platform consisting of shared assets, standards, and interfaces. Yet, few empirical studies explain how innovation ecosystems emerge. Based on a longitudinal case study of autonomous drive technology development at Volvo Car Group, this paper aims at showing how alliances for developing a new technology leads to the emergence of an innovation ecosystem. In the context of a DTC, the paper underlines how the initial resource constraints can be a blessing in disguise that drives a firm to seek new alliances. We identify that the alliances had a significant influence on the technology platform, transitioning it from an internal to a modular technology platform. This triggered the emergence of an innovation ecosystem, consisting of actors co-creating value and organizing around the technology platform. Further, the paper highlights the subtle distinction between modularization for outsourcing and modularization for co-creating value.
Highlights
In the early 90s, Intel faced a major impediment to its growth as customers bought PCs, not microprocessors
This paper aims at providing new insights on the emergence process of innovation ecosystems based on a four-year longitudinal case study at Volvo Car Group
We argue that modularity was a consequence of the technology-sourcing alliances and had unintended implications in the emergence process of the innovation ecosystem
Summary
In the early 90s, Intel faced a major impediment to its growth as customers bought PCs, not microprocessors. The key to selling more computers, i.e., more microprocessors, was contingent on the ability of users to connect their PCs to other hardware. Intel’s success depended on the establishment of an architectural standard for PCs that facilitated the development of complementary products and coordinate innovation outside of Intel (Gawer et al, 2002). The Intel Architecture Lab was created to advance both system hardware and software, and redefined the technical architecture of the PC. Intel’s success was closely tied to its foresight in developing this inter face, stimulating complementary innovations, and coordinating inno vation activities with other actors in the PC industry
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