Lecture 9

Question 1

What is a business ecosystem, and how does it differ from a traditional supply chain?

Answer 1

Business Ecosystem: A network of interdependent entities collaborating to co-create value, emphasizing modularity, innovation, and decentralized governance.

Key Differences:
- Ecosystems are non-hierarchical and governed by influence, while supply chains are often hierarchical.
- Ecosystems prioritize adaptability and innovation, while supply chains focus on efficiency and resource control.

Question 2

How has the concept of ecosystems evolved over time?

Answer 2

1. Phase 1 (1993–2005): Ecosystems as a theoretical perspective for collaboration across industries.
2. Phase 2 (2005–2014): Development of modularity and dynamic capabilities.
3. Phase 3 (2014–2018): Real-world implementation through IT platforms like Amazon and Alibaba.
4. Phase 4 (2018–present): Ecosystems as a governance structure replacing strict contractual relationships.

Question 3

What is the role of modularity in ecosystems?

Answer 3

Modularity allows components or services to be easily added, removed, or replaced, enabling innovation, collaboration, and adaptability within ecosystems.

Question 4

What are the key characteristics of ecosystems, according to Jacobides et al. (2018)?

Answer 4

1. Unique Complementarities: Entities depend on each other for functionality.
2. Supermodular Complementarities: When one activity enhances the value of another.
3. Dynamic Co-Evolution: Participants adapt together to changing conditions.
4. Non-Hierarchical Governance: Relationships are defined by influence rather than strict contracts.

Question 5

How do ecosystems and supply chains coexist?

Answer 5

1. Ecosystems enhance supply chains’ adaptability and innovation.
2. Supply chains provide the operational structure for ecosystems.
3. They may compete or complement each other depending on market conditions.

Question 6

What are the governance mechanisms in ecosystems?

Answer 6

1. Standards and informal rules replace contracts.
2. Collaboration is driven by mutual benefits and shared goals rather than strict controls.
3. Governance focuses on fostering innovation and managing interdependencies.

Question 7

How does the semiconductor supply chain exemplify ecosystem dynamics?

Answer 7

1. Advanced semiconductors are manufactured in Taiwan, while equipment and software come from the US and the Netherlands.
2. Assembly and packaging occur in low-cost countries.
3. Collaboration across countries highlights the interdependence and complexity of ecosystems.

Question 8

What challenges exist in managing ecosystems?

Answer 8

1. Mapping dependencies and managing interdependencies effectively.
2. Balancing collaboration and competition.
3. Cultural and organizational barriers to adopting ecosystem principles.

Question 9

How do ecosystems support cross-industry collaboration?

Answer 9

By integrating diverse innovations (e.g., IoT, AI), ecosystems enable cross-industry collaboration, enhancing supply chain innovation and resilience.

Question 10

What insights did Jacobides et al. (2018) provide on ecosystems?

Answer 10

• Ecosystems create value through modularity, complementarity, and co-evolution.
  Governance is non-contractual and focuses on fostering innovation.
• Relationships are dynamic and adapt to changing market needs.

Question 11

What is the significance of Legenvre et al. (2022) on ecosystems and supply chains?

Answer 11

• Ecosystems enhance modular innovation, while supply chains ensure operational efficiency.
  Both systems complement each other in product lifecycles.
• Ecosystems are better suited for dynamic markets, whereas supply chains excel in stable environments.