Understanding service ecosystem dynamics: a typology

Abstract

Purpose: The service environment is becoming increasingly turbulent, leading to calls for a systemic understanding of it as a set of dynamic service ecosystems. This paper advances this understanding by developing a typology of service ecosystem dynamics that explains the varying interplay between change and stability within the service environment through distinct behavioral patterns exhibited by service ecosystems over time. Design/methodology/approach: This study builds upon a systematic literature review of service ecosystems literature and uses system dynamics as a method theory to abductively analyze extant literature and develop a typology of service ecosystem dynamics. Findings: The paper identifies three types of service ecosystem dynamics—behavioral patterns of service ecosystems—and explains how they unfold through self-adjustment processes and changes within different systemic leverage points. The typology of service ecosystem dynamics consists of (1) reproduction (i.e. stable behavioral pattern), (2) reconfiguration (i.e. unstable behavioral pattern) and (3) transition (i.e. disrupting, shifting behavioral pattern). Practical implications: The typology enables practitioners to gain a deeper understanding of their service environment by discerning the behavioral patterns exhibited by the constituent service ecosystems. This, in turn, supports them in devising more effective strategies for navigating through it. Originality/value: The paper provides a precise definition of service ecosystem dynamics and shows how the identified three types of dynamics can be used as a lens to empirically examine change and stability in the service environment. It also offers a set of research directions for tackling service research challenges.