Digital ecosystems and their impact on organizations—A dynamic capabilities approach

Abstract

Abstract Digital ecosystems (DEs), driven by information and communication technologies, are reshaping the way firms create, deliver, and capture value across interconnected networks. These dynamic and loosely coupled ecosystems facilitate collaboration and innovation among firms, customers, suppliers, and partners. While research on digital transformation (DT) has often focused on internal firm changes, the influence of DEs on the set of capabilities at the ecosystem, partner, and focal firm levels remains underexplored. This paper addresses this gap by adopting a dynamic capabilities (DCs) framework to investigate which capabilities are required by a firm engaging in DEs. Through a systematic literature review, we identify 17 DCs essential for firms to adapt to ecosystem‐based interactions. Our findings reveal that success in DEs requires firms to co‐create and co‐deliver value through new capabilities that leverage data, foster coopetition, and align operations with the broader ecosystem. We propose a multi‐level framework that highlights the critical role of interfirm collaboration and offers actionable insights for firms navigating increasingly interconnected digital environments. Lastly, we present five future research directions that address gaps at different levels of ecosystem research.

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