Strategic repositioning of focal firms in business ecosystems: a trajectory-based perspective
Ali Panahi, Laya Olfat, Soroush GhazinooriPurpose
This study examines how focal firms evolve within business ecosystems over time. While prior research has explored ecosystem strategies, structural changes, and firm-level adaptations, it has often examined these dynamics either through specific dimensions or within a limited set of cases. The purpose of this study is to identify and systematically organize the distinct trajectories through which focal firms reposition and evolve within ecosystems, and to explain the conditions under which different trajectories emerge.
Design/methodology/approach
The study adopts a comparative multiple-case study design based on longitudinal secondary data across diverse industries. Using a theoretically informed yet inductive approach, focal firms were analyzed over extended time horizons to identify recurring patterns of strategic repositioning.
Findings
The analysis identifies five strategic trajectories through which focal firms reposition their ecosystems by reconfiguring the locus of complementarity (internal vs. external) and market scope (current vs. new). The findings show that focal firm evolution is not uniform or stage-based but follows patterned trajectories shaped by technological pressures, architectural constraints, and firm-level capabilities. Importantly, focal firm evolution does not necessarily require transformation across architectural positions; deliberately reinforcing an existing configuration can also constitute a coherent and high-performing strategy.
Originality/value
This study contributes to ecosystem research by developing an integrative conceptual framework that identifies and compares multiple trajectories of focal firm evolution. By moving beyond fragmented, dimension-specific analyses, it offers a structured and process-oriented understanding of ecosystem transformation.