Dynamic capabilities for transitioning from product platform ecosystem to innovation platform ecosystem

Abstract

Over recent decades, many platform-native start-ups and firms were founded and some are now among the world’s most valuable. This study, however, focuses on an incumbent firm transitioning from a long established product platform ecosystem to an innovation platform ecosystem in response to the platform-natives’ threats of disruption. We specifically investigate the dynamic capabilities needed by the incumbent firm in an enterprise software ecosystem in the transition phase. Our analysis builds on multi-perspective empirical data covering the viewpoints of all the actor types in the ecosystem, i.e., platform owner, platform partners, and end-user firms. The results imply the necessity of four dynamic capabilities: resource curation, ecosystem preservation, resource reconfiguration, and ecosystem diversification. With this study, we contribute to the emerging literature on the incumbent firms’ transition to a new ecosystem organising logic, and extend the study of dynamic capabilities specifically for the case of transitioning to innovation platform ecosystems.