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Chapter 2: Literature review 23 _______________________________________________________________________________________________________________________________________________ (1996, p. 26), and as “a network of interdependent niches that [can be] occupied by organizations” (2006, p. 34) – with some niches known and some not yet discovered. Iansiti & Levien (2004) distinguished between different roles within ecosystems, including keystone organizations, dominators, and niche players. Keystone organizations “aim to improve overall health of their ecosystems by providing a stable and predictable set of common assets ... that other organizations use to build their own offerings” (p. 73). Iansiti & Levien write (p. 74): Broadly speaking, an effective keystone strategy has two parts. The first is to create value within the ecosystem. Unless a keystone finds a way of doing this efficiently, it will fail to attract or retain members. The second part ... is to share the value with other participants in the ecosystem. The keystone that fails to do this will find itself perhaps temporarily enriched by ultimately abandoned. Keystones anchor an ecosystem. However, most firms in an ecosystem are niche players who operate in the shadow of the keystone to provide value creation through specialized complements that are differentiated from those of other niche players in the network. In contrast, dominators are harmful to the health of an ecosystem. A physical dominator integrates vertically or horizontally to own and directly control greater portions of the network directly; if a physical dominator wrests control by acquiring or competing directly with niche players, an ecosystem cannot emerge or sustain. Likewise, a value dominator leverages it central position to suck value out of an ecosystem, appropriating attractive profits for itself but leaving little or nothing to sustain niche players. If the organizations occupying hub positions at the centre of the network behave as dominators rather than keystones, an ecosystem will not long endure. _______________________________________________________________________________________________________________________________________________ Copyright © 2018 Ewan Reid

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