Service ecosystems: why the media industry prefers access, not ownership

Abstract

Purpose

Because of the increasing importance of access over ownership, the purpose of this paper is to propose a service ecosystem perspective to help managers navigate hypercompetition. With the rise of cloud-based services and the ongoing recovery from the COVID-19 pandemic, the global economy has shifted toward hypercompetition, a state characterized by organizational advantages that are rapidly created and then destroyed by intense competitive moves. Because advantages are quickly eroded, organizations must be aggressive in the number of actions they take and the speed with which they execute these actions. The service ecosystem perspective focuses on relationships that allow organizations to jointly adjust to one another and to their environment.

Design/methodology/approach

This paper first reviews traditional strategies for navigating hypercompetition. Then, it presents an explanation of the service ecosystem perspective. Finally, the three north stars and media examples are provided.

Findings

The service ecosystem perspective asserts “north stars” that can guide managerial decision-making in hypercompetitive environments. These north stars are: cultivate system norms, facilitate feedback loops and embrace servitization.

Originality/value

In today’s world, organizations are increasingly seeking access to resources instead of ownership of them. The proposed approach suggests that, rather than an organization owning the resources it needs to achieve advantages, organizations are increasingly relying on accessing resources by coordinating with other organizations to draw upon the resource(s) as needed, without incurring the additional burdens of ownership. Examples from the media industry are used to illustrate the three north stars of the service ecosystems perspective.

Citation

Chandler, J. and Teckchandani, A. (2023), "Service ecosystems: why the media industry prefers access, not ownership", Journal of Business Strategy, Vol. 44 No. 2, pp. 59-66. https://doi.org/10.1108/JBS-08-2021-0137