Identifying contradictions in an incumbent–startup ecosystem–an activity theory approach

Abstract

PurposeDiscussion regarding systems that promote innovation, aptly named innovation ecosystems, has been intensifying both in academia and business. The purpose of this paper is to introduce the activity theory as a theoretical framework for conceptualising and studying innovation ecosystems. Using the activity theory, it investigates elements that affect the success and viability of innovation ecosystems formed between startups and incumbent firms, collaborating with an established firm within the context of an open innovation programme.Design/methodology/approachThis study uses an exploratory case research approach and proposes the activity theory as a theoretical background to be used in innovation ecosystem research. Based on this approach, this study draws from interviews and research observations in an innovation ecosystem formed between an established firm and various startups that aim to co-develop innovative offerings.FindingsBy applying the activity theory tools, this study identifies several contradictions between interacting actors of this innovation ecosystem that can adversely affect the innovation process. Furthermore, it proposes the use of the activity theory as a fitting theoretical lens to study innovation ecosystems.Originality/valueThe novelty of this study is related to the focus on the incumbent–startup context for extending the innovation ecosystem literature. Using the activity theory as a viable methodological tool allows us to conceptualise firms as social constructs and hence pinpoint inner characteristics that can affect and shape their interactions and the broader ecosystem. This process is further enhanced by the use of primary data that give unique insights into the inner workings of innovation ecosystems by identifying underlying contradictions.

Uncovering value creation in innovation ecosystems: paths towards shared value

“…To explore the creation of SV within IEs, the paper relies on a thorough literature review of the articles published on this topic in the last 15 years. In these years, indeed, the concept of IEs, seen as key for value creation, has been widely adopted and studied (Baloutsos et al. , 2020).…”

“…Since its first formulation (Adner, 2006), the term Innovation ecosystem (IE) has been adopted to describe structures of interconnected entities, that, thanks to dynamic horizontal relations, support new grounding, exchange and strengthening of dispersed competences and resources to create innovations and value (Gomes et al, 2018;Jacobides et al, 2018;Russell and Smorodinskaya, 2018). The importance of such structures is growing (Bassis and Armellini, 2018;Baloutsos et al, 2020) due to a paradigm shift, that is moving the innovation processes outside the boundaries of a single organization (Moore, 1993;Chesbrough et al, 2006;Von Hippel, 2007;Usman and Vahnaverbeke, 2017), with the engagement and the collaboration of different entities (Schuh and Woelk, 2017;D'Auria et al, 2016;Russo-Spena et al, 2017).…”

Can team building be a game changer for Startups?

“…Available literature suggested a positive link between team building activities and team cohesion for the case of a R&D startup. This was however the only documented case of team building activities used in a startup business that the researchers managed to find [2]. This therefore highlighted a research gap that the current paper aims to address.…”

“…Ever since their birth, Start-up businesses have managed to evade a well-established definition to characterize them. Some certainties regarding the delimitation of a Start-up business is that these types of business are driven by innovation [2] [3] [4], are often faced with a shortage of resources, lack formal structures and efficient decision-making processes [5]. A generally accepted definition for Start-ups is the one coined by Ries, according to whom, Start-ups develop new products and /or services under conditions of extreme uncertainty [6].…”

“…Another important aspect of a Start-up business is that the motivation and vision of the entrepreneurial team lies is at the core of their operations, thus making emotional connection an essential aspect of a Start-up's success [2]. Lack of team synergy and building a product that customers don't need have been identified as top reasons for failing startups [7].…”