Business ecosystem extension: facilitating the technology substitution

Abstract

This paper studies how the technological ecosystem extension facilitates the technology substitution in an emerging industry. Specifically, this paper has three findings: 1) the technological ecosystem with an expanded scope including supply, demand and intermediaries; 2) two type of ecosystem extension as the bottom-up and top-down ecosystem extension; 3) the determinants of sustaining the ecosystem extension. We have conducted in-depth interviews in the Chinese low-speed electric vehicle industry, which adopted the bottom-up ecosystem extension by comparing with the traditional car industry with top-down ecosystem extension to the emerging EV industry. This paper also offers managerial implications to the focal firms and policy makers to capture the emerging opportunities within an ecosystem.