Technological uncertainties in a business ecosystem: Evidence from electric vehicle industry

Technological uncertainties in a business ecosystem: Evidence from electric vehicle industry

Technological change is like double edged sword. It posits opportunity for some organizations and opens new horizons whereas; it may create destructions for others marking an end to their prosperity. There are two leading arguments in strategic management literature. One central theme argues that firms tend to consolidate its strategic position in waves of technological change by owning unique, valuable, inimitable, non-substitutable capabilities that allow the firms to offer its customers better value than competitors (Lippman and Rumelt, 1982; Wernerfelt, 1984; Barney, 1991; and Peteraf, 1993). Other research theme argues that firms may rely on its hard-earned tacit, inimitable collaborative relationships with its key partners (suppliers, customers, complementors and alliance partners) to meet such technological transitions (Moore, 1993; Iansiti and Levien, 2004; Singh and Mitchell, 1996). This creates a network where each key player shares resources and hence, have a certain degree of dependence on each other (Adner, 2006). Concept of ecosystem has been developed over year in research complimenting both school of thoughts and that is why we will follow Adner and Kapoor’s theoretical framework (2010)

Innovation and technological change within ecosystem is considered a significant factor for firm in developing their business strategy; Hence, we develop a model combining resource based view of firm and resource dependence i.e interfirm network view of firm to analyze strategic choices made by firm under time of technological uncertainty. We will study electric vehicle as case study. As patents have been used as key indicator of technology in previous studies so, we will use them as proxy for innovation to test our model. Results of given research expect to provide a comprehensive decision-based scenario analysis where firms may recognize their strategic choices of competition, coopetition or collaboration.