Value creation and capture in business ecosystems from the business model’s perspective

• Main Author: Zheng, Q. (Qiongfang)
• Format: Dissertation
• Language: English
• Published: University of Oulu 2019
• Online Access: http://jultika.oulu.fi/Record/nbnfioulu-201906052350

Abstract. This thesis explores the concepts of business model, value creation and capture, business ecosystems and their relations to each other. While as the value network consists of linear relationships between actors, business ecosystems encompass relationships that are more diverse and tend to be more value capture-oriented. Business models are competing and collaborating simultaneously in ecosystems, this encourages value co-creation and co-capture. This co-evolution of business models enables and fosters ecosystem ecology. There are numerous actors interacting across the IoT ecosystem forming the complex interdependence and interconnection between and among different stakeholders, hence IoT is chosen as a context to study how ecosystem shapes value creation and value capture from the business model’s perspective. Four propositions are made based on the theoretical review and empirical evidence. 1) In comparison with the traditional value chain, value co-creation and co-capture are more dynamic in ecosystems. 2) In comparison with the traditional value chain, the value can be co-created and co-captured through platform business model in ecosystems. 3) In comparison with the traditional value chain, the value is co-created and co-captured through open innovation in ecosystems. 4) Value creation and capture can be maximized by creating own business ecosystem, yet it requires more resources and therefore lead to higher risks. The research methodology chosen for this thesis is a qualitative approach. Both the tradition of exploratory expert interviews focusing on exploring certain central dimensions and highlighting the expert status of the interviewee, and thematic interviews steered to stress on the flexible structure and open discussion is utilized. New themes are formed after transparent data analysis and reflecting on the theoretical and empirical findings. 1) Combining TVC and ecosystem value chain instead of choosing either or. 2) Platforms allow value co-creation and co-capture, yet a lack of track record of performance indicate higher risks for new platform business. 3) It is critical to managing the degree of openness in the open source business model but it is possible to face the challenge with some tools. 4) Creating one’s own ecosystem does not necessarily lead to maximum value creation or capture, but it certainly involves high risks and requires heavy investments. To answer the research question in short: value capture and value creation are more dynamic in ecosystems. It is not applicable for firms to maximize the creation and capture of value because increased value creation generally goes hand in hand with lower value capture. Value creation and capture are not monotone transformations of one another. Ecosystemic business models such as platform businesses and open innovation businesses enable value co-creation and co-capture. Among others, it is better for startups to find relevant ecosystems and become key players in them for optimizing value creation and capture. As business models other industry players are using affect value creation and capture, one needs to foresee the reaction of other firms when choosing, innovating, or reforming a business model.