IDEAS home Printed from https://ideas.repec.org/a/eee/bushor/v58y2015i4p469-481.html
   My bibliography  Save this article

From competitive advantage to nodal advantage: Ecosystem structure and the new five forces that affect prosperity

Author

Listed:
  • Kumar, Piyush
  • Dass, Mayukh
  • Kumar, Shivina

Abstract

In today's interconnected world, a web of entities rather than predominantly a single firm coordinates a set of activities that deliver utility to mutually connected consumers, thus creating ecosystems. In this article, we suggest that in the current, ecosystem-based production and consumption environment it is important to identify a new set of factors that determines business success. We then propose that in order to develop a network-centric strategic mindset it is important to make a transition from the notion of firm-based competitive advantage to ecosystem-based nodal advantage by which products, services, or processes held by a single firm and affecting one or more ecosystems are exploited individually to improve business. To this end, we offer a new set of five forces that are likely to affect not only a node's financial profitability but also its vulnerability within its ecosystem and the survival of the ecosystem itself. Based on these forces, we recommend strategic triangulation and the formulation of policies to prevent infra-nodal substitution, increase nodal stranglehold, and improve nimbleness to accommodate ecosystemic transitions.

Suggested Citation

  • Kumar, Piyush & Dass, Mayukh & Kumar, Shivina, 2015. "From competitive advantage to nodal advantage: Ecosystem structure and the new five forces that affect prosperity," Business Horizons, Elsevier, vol. 58(4), pages 469-481.
    • Handle: RePEc:eee:bushor:v:58:y:2015:i:4:p:469-481
    DOI: 10.1016/j.bushor.2015.04.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0007681315000403
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.bushor.2015.04.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Dass, Mayukh & Kumar, Shivina, 2014. "Bringing product and consumer ecosystems to the strategic forefront," Business Horizons, Elsevier, vol. 57(2), pages 225-234.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Santini, Mateus Augusto Fassina & Faccin, Kadígia & Balestrin, Alsones & Volkmer Martins, Bibiana, 2021. "How the relational structure of universities influences research and development results," Journal of Business Research, Elsevier, vol. 125(C), pages 155-163.
    2. R. Tri Priyono Budi Santoso & I. Wayan Ruspendi Junaedi & Sony Heru Priyanto & Donald Samuel Slamet Santoso, 2021. "Creating a startup at a University by using Shane’s theory and the entrepreneural learning model: a narrative method," Journal of Innovation and Entrepreneurship, Springer, vol. 10(1), pages 1-25, December.
    3. Dedehayir, Ozgur & Mäkinen, Saku J. & Roland Ortt, J., 2018. "Roles during innovation ecosystem genesis: A literature review," Technological Forecasting and Social Change, Elsevier, vol. 136(C), pages 18-29.
    4. Sun, Jiazhe & Wu, Shunan & Yang, Kaizhong, 2018. "An ecosystemic framework for business sustainability," Business Horizons, Elsevier, vol. 61(1), pages 59-72.
    5. Wilden, Ralf & Leiblein, Michael J. & Lin, Nidthida, 2024. "Exploring performance heterogeneity: Integrative insights from strategic management and marketing," Journal of Retailing and Consumer Services, Elsevier, vol. 79(C).
    6. Dezhi Chen & Ningning You & Feng Lv, 2019. "Study on Sharing Characteristics and Sustainable Development Performance: Mediating Role of the Ecosystem Strategy," Sustainability, MDPI, vol. 11(23), pages 1-20, December.
    7. Suominen, Arho & Kauppinen, Henni & Hyytinen, Kirsi, 2021. "‘Gold’, ‘Ribbon’ or ‘Puzzle’: What motivates researchers to work in Research and Technology Organizations," Technological Forecasting and Social Change, Elsevier, vol. 170(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sánchez Torres, Javier A. & Varón Sandoval, Alexander & Arroyo Cañada, Francisco Javier & Rojas Berrio, Sandra, 2021. "Exploring the factors affecting the use of C2C in Colombia," Cuadernos de Gestión, Universidad del País Vasco - Instituto de Economía Aplicada a la Empresa (IEAE).
    2. Heinonen, Kristina & Strandvik, Tore, 2018. "Reflections on customers’ primary role in markets," European Management Journal, Elsevier, vol. 36(1), pages 1-11.
    3. Tuomas Lappi & Harri Haapasalo & Kirsi Aaltonen, 2015. "Business Ecosystem Definition in Built Environment Using a Stakeholder Assessment Process," Management, University of Primorska, Faculty of Management Koper, vol. 10(2), pages 111-129.
    4. Sun, Jiazhe & Wu, Shunan & Yang, Kaizhong, 2018. "An ecosystemic framework for business sustainability," Business Horizons, Elsevier, vol. 61(1), pages 59-72.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:bushor:v:58:y:2015:i:4:p:469-481. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/bushor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.