|Title||Unlocking Value Creation by Embedding Investments in Business Ecosystems: Implications for System Governance|
|Publication Type||Working Paper|
|Year of Publication||2015|
|Authors||Tsvetkova, A, Eriksson, K, Wikström, K, Levitt, RE|
Investments in large projects in infrastructure, logistics, construction or energy often fail to generate their intended value (Flyvbjerg et al. 2002). There is a need to develop alternative models for analyzing large project investments where their ability to deliver maximum value for users and stakeholders is the main success criterion for their functionality. Maximizing stakeholder value across the business ecosystem will often require purposefully reconfiguring the way ecosystem actors collectively create value across industry sectors and over time. This requires coordinating workflows among the actors involved in delivering and operating the investment over its lifecycle, as well as with actors outside of it. In this paper, we propose a framework that considers both the lifecycle of an investment and its embeddedness in a larger business ecosystem in order to design enhanced governance mechanisms that can optimize system-level value creation. The framework utilizes systems and network research. It elaborates James Thompson’s notion of “reciprocal interdependency” into two distinct types of interdependency between supply chain participants—“compatible” vs. “contentious” interdependency—that require different types of governance to manage them. It provides a model for the structural analysis of workflow interdependencies between different phases of the investment lifecycle and between different parts of the business ecosystem. The analysis of a vessel investment within a short sea logistics ecosystem illustrates how the proposed framework can be applied.