Co-evolution in Business Ecosystems: Findings from Literature

Abstract

The innovative use of digital technologies has led to a disruption of well-established business models in many industries. To prevent from being disrupted, organizations must transform. However, studies about digital transformation have primarily focused on intra-organizational dynamics, including processes, structures, and business models. Digital transformation, however, substantially changes inter-organizational behavior, sometimes the entire ecosystem. To examine this phenomenon, we draw on co-evolution theory, which states that changes occur among all interacting organizations, permitting transformations to be driven by both direct interactions and ecosystem feedbacks. Thus, goal of this paper is to provide a structured overview of literature about the co-evolution of ecosystems in management, organizational science, and IS literature. Following the six properties of co-evolution, we develop a framework for the co-evolution in ecosystems, comprising 23 configurations, based on the analysis of 44 articles. Ultimately, we suggest avenues for future research.