Abstract
Business ecosystem leaders tend to focus on their own success rather than carefully monitoring the success of business ecosystem members, and each member must find a mechanism to capture value. Rarely has business ecosystem research examined the success of business ecosystem members. This study investigates the mechanisms by which business ecosystem members capture value in the business ecosystem related to different types of storage formats and how these mechanisms contribute to the sustainability of the business ecosystem. We identify two value capture mechanisms in the storage business ecosystem. First, media manufacturers, being members of the storage business ecosystem, can capture value through strong network effect in the server backup markets. They can sell a significant amount of media for every single unit of a drive sold through the strong network effect. Second, media manufacturers can capture value by selling their media repeatedly as consumables for many years. We quantitatively confirm these mechanisms using a vector autoregressive model to measure the strength of the indirect network effect. These mechanisms help business ecosystem members in staying within the business ecosystem and also contribute to the business ecosystem’s sustainability.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.