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| Author: | Pierce, L. |
| Title: | Big losses in ecosystem niches: How core firm decisions drive complementary product shakeouts |
| Journal: | Strategic Management Journal
2009 : MAR, VOL. 30:3, p. 323-347 |
| Index terms: | market segmentation market entry market exit subsidies competition car industry leasing dealers business-to-business product differentiation |
| Freeterms: | business ecosystems niche markets |
| Language: | eng |
| Abstract: | This study examines business ecosystems' (henceforth as: e-sts.) shakeouts. Market turbulence produced by core firm decisions in competing differentiated (here as: diffd.) e-sts. can generate financial losses and exit for complementary niche market (here as: n-m./n-ms.) firms. Hypotheses (as: hpts.) predicting which n-ms. will suffer larger losses and be more susceptible to shakeouts are developed. It is also dealt with how core firm decisions will drive complementor performance and survival. The hpts. are applied to brand-based diffd. e-sts. in the automotive industry, where networks of suppliers, customers, and complementors surround car manufacturers. In particular, the focus is on studying the complementary n-m. of automotive leasing with manufacturers swinging the leasing markets by entry, product change, and subsidization. A dataset of 200,000 individual car leases from 1997 to 2002 is used to identify how manufacturer product design and n-m. entry drive complementor losses and exit. This allows an understanding how the strategic choices of core firms can have substantial and often devastating effects on n-ms. in their e-sts. In addition, the results suggest how the dynamic capabilities to adapt to core firm behaviour may improve performance for certain n-m. complementors. |
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