JOURNAL OF STRATEGIC INNOVATION AND SUSTAINABILITY
Business Ecosystems as the Approach to Create Value and Appropriate Value for Small Firms in Emerging Markets
Author(s): Nicholaus Bhikolimana Tutuba, Hawa Petro Tundui, Jasinta Samwel Msamula
Citation: Nicholaus Bhikolimana Tutuba, Hawa Petro Tundui, Jasinta Samwel Msamula, (2019) "Business Ecosystems as the Approach to Create Value and Appropriate Value for Small Firms in Emerging Markets," Journal of Strategic Innovation and Sustainability, Vol. 14, Iss. 5, pp. 90-107
Article Type: Research paper
Publisher: North American Business Press
How can firms with limited scope and scale compete to create value and appropriate value beyond their existing business? Firms in the beekeeping industry in Tanzania, beekeepers, in particular, have failed to create sufficient value and appropriate a sizable value as they have limited financial resources to invest. The business ecosystem approach indicates that firms can jointly create value that can capture sizable value through the ecosystem's resources. In the beekeeping industry, the ecosystem should be structured around the honey collection center and its efficiency depends on productivity, lock-in, channel management, complementarity, and the position and activities of actors. Firms' ability to successfully create value and capture value depends on the ability to team up with partners with complementary assets and skills in an industry architecture. Value creation and value appropriation cannot materialize if partners are not committed and willing to work together on long term bases.