From product system to ecosystem: How firms adapt to provide an integrated value proposition

Ecosystems represent a key chal-lenge for established firms, shifting their focus fromproducts to system-level collaboration around integratedvalue propositions. This longitudinal case study of amachine manufacturer reports how an established firmcreated an ecosystem to enhance its focal product. Draw-ing on an activity system lens, we develop a model howfirms can achieve fit around an integrated value proposi-tion through mutual adaptation of product and ecosys-tem activities. This strategic transformation is supportedby a shift towards collaborative organizational design.We elaborate on how firms can create non-generic com-plementarities between products and the emerging eco-system through product adaptations, demonstrate therole of internal and external collaboration in developingecosystem orchestration capabilities, and highlight datageneration and processing as critical factors in realizingcomplementarities.