Predicting Ecosystem Alliances Using Landscape Theory

• Main Author: Shruti Satsangi
• Format: Article
• Language: English
• Published: Carleton University 2012-08-01
• Series: Technology Innovation Management Review
• Subjects: alliance formation; business ecosystems; coalition forming games; coalition prediction; landscape theory
• Online Access: http://timreview.ca/sites/default/files/article_PDF/Satsangi_TIMReview_August2012.pdf

Previous articles in the TIM Review have covered various aspects of the concept of business ecosystems, from the types of ecosystems to keystone strategy, to different member roles and value co-creation. While there is no dearth of suggested best practices that organizations should follow as ecosystem members, it can be difficult to apply these insights into actionable steps for them to take. This is especially true when the ecosystem members already have a prior history of cooperation or competition with each other, as opposed to where a new ecosystem is created. Landscape theory, a political science approach to predicting coalition formation and strategic alliances, can be a useful complement to ecosystems studies by providing a tool to evaluate the best possible alliance options for an organization, given information about itself and the other companies in the system. As shown in the case study of mobile device manufacturers choosing platform providers in the mobile ecosystem, this tool is highly flexible and customizable, with more data providing a more accurate view of the alliances in the ecosystem. At the same time, with even basic parameters, companies can glean significant information about which coalitions will best serve their interest and overall standing within the ecosystem. This article shows the synergies between landscape theory and an ecosystems approach and offers a practical, actionable way in which to analyze individual member benefits.