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Chapter 2: Literature review 24 _______________________________________________________________________________________________________________________________________________ 2.2.1 Business ecosystems as an organizational form Moore (2006) argued that business ecosystems are a distinct organizational form – a mode of organizing economic production that differs from markets and organizational hierarchies. Moore (2006, p. 31) writes: For more than sixty years, markets and hierarchies have dominated our thinking about economic organization... A third form, the ecosystem organizational form, has now become so important in practice that it should be accorded equal recognition in theory and policy-making. Markets, hierarchies and ecosystems are the three pillars of modern business thinking. Table 9 compares Moore’s explanations of the three organizational forms of markets, hierarchies, and business ecosystems. Table 9: Markets, hierarchies, and business ecosystems (from Muegge, 2011a, p. 86; adapted from Moore, 2006) Forms Key Features Market Hierarchy Business ecosystem Function Ideal relationships sought Levels of analysis to judge performance Guidance Facilitate transactions for goods Perfectly transparent transactions Goods and services The invisible hand of the market (Smith, 1776) Facilitate control over activities that produce goods Perfect control Tasks and activities The visible hand of the professional manager or entrepreneur (Chandler, 1977) Facilitate coordination of innovation in goods and the activities that produce them Facilitate managed co-evolution of the complex web of markets and hierarchies Perfect co-evolution of innovation A multitude of contributors The guiding hand of community leaders 2.2.2 Related ideas Moore (2006) cited and drew on a broad set of “related ideas” (p. 36) from scholarly research and practice in the domains of business strategy, marketing, research _______________________________________________________________________________________________________________________________________________ Copyright © 2018 Ewan ReidPDF Image | Carbon Removal
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