Designing incentive systems for participation in digital ecosystems—An integrated framework

Abstract

Digital ecosystems are a highly relevant phenomenon in contemporary practice, offering unprecedented value creation opportunities for both companies and consumers. However, the success of these ecosystems hinges on their ability to establish the appropriate incentive systems that attract and engage diverse actors. Following the notion that setting “the right” incentives is essential for forming and growing digital ecosystems, this article presents an integrated framework that supports scholars and practitioners in identifying and orchestrating incentives into powerful incentive systems that encourage active participation and engagement. This framework emphasizes the importance of understanding how individuals and groups are motivated to engage in the ecosystem to incentivize them effectively. To demonstrate its applicability and value, we show its application in the context of an emergent digital ecosystem within the Smart Living domain.