Performance measurement and management systems for dealing with strategies in uncertain ecosystems

Abstract

PurposeAlthough there is a growing research stream on Performance Measurement and Management Systems (PMMS) in Ecosystems literature, current research offers limited theoretical insights into how PMMS deal with two types of strategies in uncertain ecosystems: ecosystem-based strategy – EBS (at the focal firm level) and ecosystem strategy – ES (at the ecosystem level). This study aims at identifying how PMMS are employed to deal with different types of strategies in uncertain ecosystems.Design/methodology/approachThe authors employed an inductive, rich multiple case approach in five focal firms with platform ecosystems. Data collection involved multiple sources of information (primary and secondary data), combing retrospective and longitudinal perspectives. Data analysis combined replication and comparison logic with coding.FindingsThis study identifies four major distinctive dimensions of Ecosystem PMMS under uncertainty: (1) Integrative Performance (considering the different ecosystem actors’ performance), (2) Interdependence Performance (mutual, yet not necessarily convergent amongst ecosystem partners), (3) Regulative Performance (paradoxical in nature, having to cope with both flexibility and stability) and finally (4) Phased Learning Performance (non-linear).Research limitations/implicationsOur primary contribution is a new framework for PMMS literature: a performance measurement and management system for dealing with strategies in ecosystems. This framework enables managing performance regarding both types of strategies (EBS and ES) and their interplay in uncertain ecosystems.Practical implicationsThe ecosystem management requires focal firms to measure and manage the overall ecosystem’s performance, and it varies according to the type of strategy adopted in each case. Our framework provides dimensions that guide firms to build and implement PMMS for an ecosystem consistent with the ES. Therefore, it may improve performance, especially in uncertain business contexts.Originality/valueThe findings enrich PMMS literature in an ecosystem context related to the ES in uncertain environments.

Innovation for zero-deforestation sustainable supply chain management services: a performance measurement and management approach

“…More recent developments of PMM theory include Pavlov and Micheli (2022), who apply complexity theory to PMM, and Micheli and Muctor (2021), who look at how PMM can be adopted at the level of business eco-systems, which are constellations of firms coming together to achieve a shared goal. Other supporting work relevant to the case of ZDFSC includes Gomes et al (2023), who consider how PMM might operate where such eco-systems include uncertainty, pointing to the need for inter-organisational learning processes. Other relevant research (Legenvre and Hameri, 2023) includes how data sharing processes can emerge along complex supply chains.…”

“…Similarly, research on deforestation and supply chains includes legal studies (Grabs et al , 2021) or geography (Lambin et al , 2018; Lambin and Furumo, 2023) rather than management studies. Hence, we seek to conduct theory elaboration on PMM from the perspective of ZDFSC.…”

Rediscovering innovation processes in ecosystem settings: the role of ecosystem strategy in shaping new innovation processes

“…Indeed, Adner (2017) argues that the ecosystem strategy refers to how firms will pursue this alignment. Building on this, Gomes et al (2023) advocate for the existence of two types of strategy, an ecosystem-based strategy where the firm wants to guarantee its role in the ecosystem, and an ecosystem strategy where the goal is to guarantee the success of the ecosystem competing with rivals (Gomes et al, 2023). Indeed, the notion of competition within and across ecosystems is central to understanding its dynamics (e.g., Hannah and Eisenhardt, 2019;Rietveld and Schilling, 2020).…”

“…Third, there is a lack of research exploring how firms competing in the ecosystem change their innovation processes given the new strategy. The literature has shown that firms employ different strategies when dealing with ecosystems (Gomes et al, 2023;Hannah and Eisenhardt, 2019;Kretschmer et al, 2022;Rietveld et al, 2019;Rietveld et al, 2021).…”

“…For example, a key discussion in the platform scholarship is how firms use boundary resources strategically both to facilitate the innovation of other ecosystem partners and also to trigger the expansion of the ecosystem (e.g., Inoue, 2021). Furthermore, Gomes et al (2023) have uncovered the dynamics of firms that need to deal with competing and often contradictory strategies; however, we still do not have a clear understanding of how these strategies trigger the emergence of new or adapted innovation processes to address them.…”