The Translucent Hand of Managed Ecosystems: Engaging Communities for Value Creation and Capture

46 Pages Posted: 19 Jul 2023

See all articles by Elizabeth J. Altman

Elizabeth J. Altman

University of Massachusetts Lowell

Frank Nagle

Harvard Business School

Michael Tushman

Harvard University - Organizational Behavior Unit

Date Written: May 1, 2021

Abstract

Management research has increasingly explored the domains of ecosystems, platforms, and open/user/distributed innovation - governance structures focused on engaging with external communities. While these research areas include substantial empirical and theoretical work and share notable similarities, the literature streams have evolved separately limiting our ability to understand underlying mechanisms and dynamics. We comprehensively review these distinct literatures to highlight commonalities and induce novel insights. We introduce the overarching concept of the managed ecosystem governance structure through which an organization engages external communities for value creation and capture such that the locus of activity resides outside organizational boundaries while the locus of control remains within the organization. It represents a translucent hand between the invisible hand of the market and visible hand of the organizational hierarchy. Because the extant literature only lightly addresses incumbent organizations transitioning to these models and rarely touches upon those operating with multiple governance structures simultaneously, we further review and synthesize research on organizational adaptation and ambidexterity. From this integrative review, we identify capabilities to execute managed ecosystems including shepherding communities without exploiting them, managing data and intellectual property, ecosystem-driven open adaptation, and ambidextrous governance. We additionally present opportunities for future research across these research domains.

Keywords: Ecosystems, Platforms, Open and User Innovation Strategy, Capabilities

Suggested Citation

Altman, Elizabeth J. and Nagle, Frank and Tushman, Michael, The Translucent Hand of Managed Ecosystems: Engaging Communities for Value Creation and Capture (May 1, 2021). Harvard Business School Strategy Unit Working Paper No. 19-096, Harvard Business School Organizational Behavior Unit Working Paper No. 19-096, Academy of Management Annals, Vol 16 (1), 2022., Available at SSRN: https://ssrn.com/abstract=3344435 or http://dx.doi.org/10.2139/ssrn.3344435

Elizabeth J. Altman

University of Massachusetts Lowell ( email )

1 University Ave
Lowell, MA 01854
United States

Frank Nagle (Contact Author)

Harvard Business School ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

Michael Tushman

Harvard University - Organizational Behavior Unit ( email )

Soldiers Field
Boston, MA 02163
United States

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