Where Ecosystem Mindsets Come From: How Tech Entrepreneurs Envision Their Target Markets

Abstract

Business ecosystems – systems of value creation that transcend conventional industry boundaries – are becoming increasingly important contexts of tech entrepreneurship. Yet, we lack an understanding of how tech entrepreneurs develop an understanding of nascent ecosystems for new products. Based on a multi-case study of Boston-based tech entrepreneurs, this study finds that entrepreneurs build an ecosystem mindset incrementally by shifting from targeting alternative primary clients, based on an industry mindset, to envisioning inter-connected clients across industries exploiting complementarities between multiple product uses. Findings contribute to micro-foundations of ecosystem strategizing and a better understanding of opportunity generation and entrepreneurial learning.