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Chapter 2: Literature review 31 _______________________________________________________________________________________________________________________________________________ leverage and architectural openness” (p. 47) and assert that platforms combine elements of three leverage rationales: production, innovation, and transaction. “The platform ecosystem stream views the platform as a hub or a central point of control within a technology-based business system” (p. 53). Thus platforms of various forms can be the locus of innovation anchoring a business ecosystem. On the theme of innovation processes, Baldwin & von Hippel (2011) assess the economic viability of innovation by producers relative to two increasingly important alternative models: user innovations by single users and open collaborative innovation by groups of individuals. Through formal cost-benefit analysis, they demonstrate that the open collaborative innovation and user innovation processes that anchor many business ecosystems are increasingly viable as the costs of design and communication drop. Adner (2017) develops an alternative conceptualization of ecosystems as a perspective on management phenomena rather than an organizational form. An ecosystem perspective on strategy emphasizes interdependence between actors, and the allocation of resources in the context of interdependence: “It is a distinct complement to established schools of thought around competitive strategy and corporate strategy” (p. 40). Adner develops an ecosystem-as-structure approach with an activity-centric view of interdependence, contrasting with the ecosystem-as-affiliation approach used by Moore (1996) and Iansiti & Levien (2004) and much of the literature, “which sees ecosystems as communities of associated actors defined by their networks and platform affiliations” (p. 40). While distinct from Moore’s view of an ecosystem as an organizational form, it is relevant here as explained by Adner (2017, p. 44): _______________________________________________________________________________________________________________________________________________ Copyright © 2018 Ewan Reid

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