New research offers managers a framework for understanding who wins in AI ecosystems and why
An article published in the Strategic Management Journal, "Value Creation in Innovation Ecosystems," by Ron Adner and Rahul Kapoor, offers a framework for understanding competitive advantage in today's rapidly evolving AI landscape. While debates about AI often focus on models, products or spending races among technology giants, the research suggests that success depends less on any single…
A new study published in the Strategic Management Journal explores the concept of competitive advantage in AI ecosystems, proposing that success is not determined by individual technological breakthroughs, but rather by how effectively firms orchestrate the broader ecosystem surrounding them. The research, conducted by Ron Adner and Rahul Kapoor, highlights the interdependent relationships among technology leaders, suppliers, and complementary products and services.
The study, originally published in 2010, provides insights into current competition among AI hyperscalers such as Amazon, Microsoft, Google, and Meta. It suggests that firms that ultimately succeed may not be those with the most advanced technology, but rather those that most effectively coordinate the ecosystem required to make that technology valuable.
For managers, the research offers strategic questions to consider, including identifying ecosystem bottlenecks, aligning innovation trajectory with ecosystem readiness, and making decisions on vertical integration to create sustainable advantage.
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