Modeling Service Ecosystems Innovation

A service ecosystem refers to such a complex service system that is relatively self-contained, self-adjusting systems of resource-integrating actors connected by shared institutional logics and mutual value creation through service exchange with emphasis on dynamic features like adaptation, viability and sustainability. In this paper focusing on innovation we first analyze service ecosystems in systems perspective by adopting Panarchy and Transition Management Theory in particular. Panarchy is a framework for analyzing ecosystem developed to account for the dual characteristics of all complex systems, i.e., stability and change. Transition Management Theory is a well-known framework for arguing governance of social systems for sustainability. Second, based on the arguments, we propose Hierarchical Model of Service Ecosystems Innovation, which describes dynamic behavior of service ecosystems innovation in such a comprehensive way that some important key concepts in service innovation research are positioned in it. Finally, we illustrate validity of the model by applying it to a case of service ecosystems innovation of portable audio players.