Session 242

Value Creation in Buyers-Supplier Relationships and Ecosystems

Track E

Date: Monday, October 5, 2015


Time: 13:45 – 15:00


Room: Governor's Square 11

Session Chair:

  • Tammy Madsen, Santa Clara University

Title: Discovering Value in Buyer-Supplier Relationships


  • Olivier Chatain, HEC-Paris
  • Peter Zemsky, INSEAD

Abstract: Relevant information about how much value can be created in a buyer-supplier relationship is often difficult to evaluate before exchange takes place. For instance, in professional services, the fit between buyers and suppliers can be hard to assess ex ante. We use a formal model to explore the implications of the lack of ex ante observability of bilateral value creation on the process of value discovery. We study how the cost of resolving uncertainty about value creation potential is amplified due to conflicts over value distribution. Compared to an efficient benchmark we find for example that a buyer leading the value discovery process will spend too much resources to include unproven suppliers in the consideration set and yet be biased against actually trying these suppliers.

Title: Ecosystem Dynamic Capabilities: Enabling Co-Innovation & Growth


  • Tammy Madsen, Santa Clara University
  • David Cruickshank, Santa Clara University

Abstract: Our study adds to the growing literature on open innovation and mechanisms for platform-based ecosystem growth by identifying an alternative approach to ecosystem growth -- a platform provisioning both supply- and demand-side resources to external parties (complements) for co-innovation projects. Studies emphasize the importance of demand-side resources in promoting partner relationships in platform-based ecosystems. Unaddressed is the role of other types of resources, capabilities, and processes in shaping and growing an ecosystem. Studying a novel context, a platform with a high degree of resource-openness that is governed and controlled by a single firm, we address this gap. The findings demonstrate how a platform’s degree of resource openness gives rise to a dynamic capability that yields outcomes vital to building and sustaining an ecosystem’s evolution and durability.

Title: Product Decisions by Sellers on a Platform: Publishers' e-Book Offerings on Amazon Kindle


  • Richard D. Wang, University of Minnesota
  • Cameron Miller, University of Minnesota

Abstract: Multi-sided platform operators are concerned not only with seller participation but also the extent to which they participate. In this paper, we examine three questions related to sellers’ product decisions that are salient to platform success: Do sellers offer in demand products, their most competitive products, and their most important products? We study e-books on Amazon Kindle. We find that publishers offer their popular titles (as opposed to niche titles), and titles that they possess competitive advantage over other publishers. These products help attract buyers to the platform, thereby contributing to the indirect network effect. However, publishers withhold titles that constitute a high percentage of their printed books sales, which suggests that publishers guard their most important products against Amazon’s control.

Title: Understanding and Involving Consumers in Value Creation: A Conceptual Frame for Strategic Management Studies


  • Gianmario Verona, Bocconi University
  • Paola Zanella, Bocconi University
  • Paola Cillo, Bocconi University

Abstract: Established firms struggle to survive competence-destroying discontinuities unless they own valuable specialized complementary assets. But what happens in the opposite case, when discontinuities destroy incumbents’ complementary assets while sparing their core know-how? We address this important question with an inductive study of the Italian newspaper industry during the Internet revolution (1995–2014). We find that when a discontinuity substitutes incumbents’ specialized complementary assets with generic complementary assets, many more goods can be produced. The condition of product abundance undermines incumbents’ ability to create value, while the destruction of specialized assets reduces their ability to appropriate value. Entrants develop new sources of advantage based on orchestrating capabilities that satisfy emerging needs. We offer several contributions for the literatures on technological change and dynamic capabilities.

All Sessions in Track E...

Sun: 08:00 – 09:15
Session 28: The Latest and Greatest in Empirical Methods for Strategy Scholars
Sun: 09:45 – 11:00
Session 29: The Elephant in the Room: How public policy and institutions help drive innovation, entrepreneurship, and firm performance
Sun: 11:15 – 12:30
Session 30: Heterogeneity in Firms and Their Pre-entry Capabilities: Implications for Firm and Industry Evolution
Sun: 16:15 – 17:30
Session 229: How Resources Change in Dynamic Situations
Sun: 17:45 – 00:00
Session 313: Competitive Strategy Business Meeting
Mon: 08:00 – 09:15
Session 273: Complexity in Competition
Mon: 11:15 – 12:30
Session 244: Legitimacy, Stakeholders, and Competition
Mon: 13:45 – 15:00
Session 242: Value Creation in Buyers-Supplier Relationships and Ecosystems
Mon: 16:45 – 18:00
Session 238: Temporary and Long Term Competitive Advantage
Session 243: Competitive Dynamics and Market Positioning
Tue: 08:00 – 09:15
Session 272: Competitive Dimensions of Firm Boundary and Location Decisions
Tue: 11:00 – 12:15
Session 230: Multi-Market Competition and Mutual Forbearance
Session 264: Emerging Technologies and Industries
Tue: 14:15 – 15:30
Session 267: Healthcare Industry Dynamics, Relationships, and Activities
Tue: 15:45 – 17:00
Session 269: Exploration, Exploitation, and Competition
Tue: 17:30 – 18:45
Session 263: Developing a Value Creation Theory

Strategic Management Society