• The Journal of Information Systems
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• v.25 no.1
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• pp.75-104
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• 2016

Purpose The business ecosystem perspective offers a new lens in which to view customers. Customers as the member of business ecosystems influence firms by participating in both the firm level activities and the business ecosystem level activities. For example, customers participate in the business ecosystems by forming interest groups, allowing their voice to be heard the within business ecosystems. Customers can also, turn public opinion around and foster the business ecosystems favorable to firms. On the other hand, as an extreme case of customer participation, customers can engage in community activities to boycott the purchase of products or services from certain firms or business ecosystems. Design/methodology/approach This study views content creation and feedback activities as customer participation in the firm level. On the other hand, word-of-mouth (WOM) and boycott activities are considered as customer participation in the business ecosystem level. This study presents a research model regarding the relationships among customer socialization, customer participation, and psychological ownership. The proposed model is validated through an empirical analysis on online platform business ecosystems. Findings When the two business ecosystems are compared, different results were drawn. In the Facebook ecosystem, boycott and psychological ownership did not have a significant relationship. However, in the Kakao ecosystem, the two had a significant positive relationship. The mediating effect of the business ecosystem type sheds a light on the mission, purpose, vision, and other values associated with the theory of the business on the customer-firm relationship. Further implications for theory and practice were discussed in this study.

• The Journal of Information Systems
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• v.23 no.4
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• pp.93-117
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• 2014

How can business ecosystems be a source of firm's competitiveness? Is corporate social responsibility (CSR) is an investment activity for building sustainable business ecosystems? The purpose of this research is to identify the relationship between CSR, social value, sustainable business ecosystems, and firm's competitiveness by introducing a mediating role of social capital. We conducted in-depth interviews with seven informants from two domestic firms and four oversea firms. Three propositions were drawn by analyzing qualitative data collected from the interviews and literature review. Various activities creating social value including CSR and CSV (Creating Shared Value) are positively associated with sustainable business ecosystems. Firm accumulates social capital of the business ecosystem through creation of social value. Finally, the social capital of business ecosystem has a positive influence on firm's competitiveness. Implications were suggested for academics and practitioners.

• Journal of Distribution Science
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• v.12 no.12
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• pp.83-92
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• 2014

Purpose - A business ecosystem refers to mutually dependent systems interconnected by a loose foundation of various ecosystem members such as customers, suppliers, partners, and other stakeholders. The ecosystem-based strategy attempts to achieve competitive advantage for firms by enriching a business ecosystem or building a sustainable business ecosystem through the collaboration and co-evolution of its members. A sustainable business ecosystem is a source of competitiveness for firms anda manageable resource for gaining a competitive advantage. Customers represent the core membership of the business ecosystem and play a pivotal role in building a sustainable business ecosystem. This study examines the effects of customer participation on economic and social value in the business ecosystem and suggests a course of action for building a sustainable business ecosystem. Research design, data, and methodology - Two business cases of South Korea are selected from two different business types: business-to-business (B2B) and business-to-customer (B2C) firms. Business ecosystems for B2B and B2C firms reflect contrasting characteristics. Data was collected from in-depth interviews with four representatives of four firms. Results - The study suggested seven propositions for the relationships between customer participation and a sustainable business ecosystem through multiple case studies based on in-depth interviews. The results reveal the following four strategic actions for building sustainable business ecosystems based on the suggested propositions: alignment, systemization, socialization, and co-evolution. Alignment refers to achieving a harmonic balance or virtuous circle among the firm's mission, investment, and value creation. Systemization refers to building and implementing management and infrastructure systems rooted in the corporate culture. Socialization of customers in the business ecosystem reinforces the harmony or virtuous cycle. Finally, co-evolution is associated with the relationship between firms and customers as buyer firms in a restricted business ecosystem. Conclusions - This study considers multiple cases for the execution of a sustainable business ecosystem in collaboration with customers and suggests seven propositions and four strategic actions. The results are based on qualitative data from interviews with business associates from two firms in an open business ecosystem and two firms in a restricted business ecosystem, both in South Korea. Our research results regarding two contrasting business ecosystems shed light on business issues and policy making in Asian business environments, which are in the transition stages from a traditional conglomerate-driven to an inclusive growth-driven economy. The business ecosystem itself should be considered a manageable resource for firms' competitive positions in the market. A customer is a member of the business ecosystem and should thus be viewed not only as a purchasing entity and an object of relationship management but also as a co-creator of value. Therefore, firms should collaborate with customers to build sustainable business ecosystems. For this, firms must create social value, which cannot be created by customers alone, within the business ecosystem. Then, customers participate in a business ecosystem and build it to be favorable to them. Implications for academics and practitioners were suggested.

• Journal of Information Technology Services
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• v.15 no.1
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• pp.299-319
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• 2016

This study first introduces platform services and their business models. On the basis of the concepts of business ecosystem, we present a framework for distinguishing types of the platform service business models. Two key characteristics of business ecosystems-ecosystem configuration and value production process-are employed as fundamental dimensions for constructing typology. In particular, we also present the notion of value ecosystem, where not a single platform provider but a federation of platforms constitutes a virtual platform and completes a service system. The value ecosystem represents two distinct types of platform service business models : meta-platform ecosystem and platform coalition ecosystem. They show different governance structure in the platform federation and service flows across the ecosystem. We present detailed analyses of these two value ecosystems focusing on relevant cases of e-payment FinTech : Apple Pay as an example of meta-platform and Kakao Pay for platform coalition. Our conceptual typology contributes to platforms' proper strategy formulation and presents policy implications to, for example, platform neutrality.

• The Journal of Information Systems
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• v.24 no.3
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• pp.47-74
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• 2015

Purpose By participating in the business ecosystems, customers make both positive and negative impacts in the ecosystem. In particular, users of platform businesses participate in the business ecosystem as partial employees who voluntarily create and manage content. According to the organizational behavior literature, employees' psychological ownership toward the organization has an influence on the organizational competitiveness. Thus, with an assumption that customers gain psychological ownership toward the business that they participate in, it is important to analyze the process and the factors that influence their psychological ownership. This study proposes a research model that describes the process: customers undertake customer socialization, which then lead them to participate in the business-level and the business ecosystem-level activities. Through the participation, customers gain psychological ownership toward the business. Design/methodology/approach Based on a structural equation model, this study analyzes the data regarding the factors in the research model. Data was collected by surveying college students who represent themselves as Facebook and DaumKakao users. By analyzing the collected data, the relationships are validated between customer socialization and customer participations (i.e., both business-level and business ecosystem-level participation), and between the participations and customers' psychological ownership. Findings Based on the validation, this study confirms the importance of managing customers' psychological ownership and offers customers' participation by their socialization as a solution for increasing customers' psychological ownership. Also, this study proposes the business ecosystem research model as the general research framework for future research and expands the scope of strategic management from the individual level strategy to the business ecosystem wide perspective.

• Asia pacific journal of information systems
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• v.30 no.4
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• pp.808-831
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• 2020

The business world has been undergoing a digital transformation. The adoption of multi-sided digital platform across the world has sped up this transformation. Multi-sided digital platforms create value by mediating interactions and transactions of distinct groups of users. A platform and its stakeholders need to be considered as a business ecosystem. Elements or components in the ecosystem exchange values and together form a network of exchange values. The objective of this paper is to construct a framework for crafting and observing digital business ecosystems. The foundation theories used to construct the framework are transaction cost economy (TCE), multi-sided markets, and value network. This paper uses Go-Jek, a growing ride-hailing platform from Indonesia, as a case to discuss how the framework works in mapping Go-Jek's digital business ecosystem, and then explain its expansion strategy. This paper has both theoretical and managerial contributions. It provides a formal definition of digital business ecosystems as a network of exchange values. The framework does not only help studies the existing business ecosystems but also can be used to craft a new business ecosystem. It can also be used to study value exchanges within the ecosystem, assessing or crafting ecosystem expansion strategies.

• 한국경영정보학회:학술대회논문집
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• 2007.11a
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• pp.343-348
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• 2007

In a customer-driven economy, single-business level analysis may not be sufficient. A large number of loosely interconnected participants who depend on one another for their mutual effectiveness and survival make up a business ecosystem. A business ecosystem is a holistic view of vital flows and relationships that sustain business activity. Businesses need to understand their physical condition in a business ecosystem to evaluate their capabilities. This paper defines the healthiness of business ecosystems in order to understand their competitiveness. It can give business an actionable guide. Healthy ecosystem means a business environment that has had four capabilities to survive. IT plays a leading part in healthy business ecosystem. It looks into business strategies and the role of IT in business ecosystems.

• The Journal of Fisheries Business Administration
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• v.42 no.1
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• pp.71-83
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• 2011

An ecosystem-based fisheries management (EBFM) approach becomes more important as an alternative management method for a sustainable development of fisheries domestically and internationally. Many methods of applying a practical EBFM to fisheries management have been investigated, and considerable attention has been given to developing effective indicators of the present status of and changes in ecosystems and putting them to practical use. Among ecosystem indicators, developing socioeconomic indicators for EBFM is particularly important. This is because socioeconomic factors have direct effects on ecosystems, and ecosystems have direct effects on socioeconomic factors. Therefore, it is imperative that socioeconomic indicators are developed and evaluated in order to predict changes in ecosystems and to provide advice for effective fisheries management. This study is aimed to develop socioeconomic indicators which can be combined with biological and ecological indicators, in order to conduct the ecosystem-based fisheries assessment. In terms of socioeconomic indicators, five socioeconomic criteria were considered as important attributes of socioeconomic changes. These criteria include economical production, business conditions, income, market, and employment indicators. For evaluation of newly developed socioeconomic indicators, the Traffic Light System (TLS) method was used. In addition, on the basis of the application of developed indicators to the Korean large purse seine fishery, the socioeconomic conditions of the fishery and the usefulness of the indicators were evaluated and management implications were discussed.

• The Journal of Korean Institute of Communications and Information Sciences
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• v.37B no.11
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• pp.1058-1071
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• 2012

This paper proposes policies for developing ICT ecosystems so that Korean ICT companies can have a competitive power under the changing ICT industry environment. It analyzes the changes of user characteristics, their consumption trends and ICT industry environment. It also examines problems of domestic ICT industry and overseas ICT policies. In addition, it investigates the ICT ecosystem strategies of Google and Apple based on the theory of business ecosystem. This study suggests government policies for establishing a smart ecosystem, incubating a strategic ecosystem, and maintaining a sustainable ecosystem. The findings of this study provide additional insights and guidelines for policy makers to develop effective ICT ecosystems.

• Journal of Korean Institute of Industrial Engineers
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• v.37 no.1
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• pp.41-54
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• 2011

A central theme in recent IT (information technology) industry is a mobile ecosystem. While a concept of business ecosystem, which is an economic community of firms and individuals producing and consuming goods and services, has been around for about 20 years now, the recent spotlight is mainly caused by the enormous success of iPhone. Many hand-set makers or platform developers want to mimic Apple's iPhone ecosystem from which both application developers and hand-set users can benefit. In this study, a representation model of the business ecosystem is proposed for supporting systematic design and analysis of ecosystems. Whereas previous studies also proposed some representation models, they emphasized only on the value chain between participating players. The proposed model, which is named relation-based ecosystem model, represents an ecosystem with the requirement relationships between product and service components and the roles of players, as well as their value chain. Such comprehensive representation explicitly reveals the strategic difference between ecosystems. This advantage was illustrated by comparing a Korean traditional mobile ecosystem and an emerging smart-phone ecosystem represented by the proposed model.