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Resource Redeployment in Business Ecosystems

Douglas P. Hannah

Robert P. Bremner

Kathleen M. Eisenhardt

Resource Redeployment and Corporate Strategy

ISBN: 978-1-78635-508-9, eISBN: 978-1-78635-507-2

Publication date: 31 August 2016

Abstract

This paper addresses resource redeployment in ecosystems. Prior research examines the value of resource redeployment across product markets in multi-business firms. In contrast, resource redeployment across ecosystems is an important corporate strategy employed by both single- and multi-business ecosystem firms that has received little attention. To address this gap, we present a case study of resource redeployment by an entrepreneurial firm in the US residential solar industry. We propose that the value creation mechanisms (i.e., improving capabilities, bottleneck relief) are fundamentally different when resources are redeployed in ecosystems. We identify “consumption-side” interdependence of components and “production-side” resource relatedness as playing critical roles in both types of value creation and propose conditions under which resource redeployment is most valuable. Overall, we contribute insights into the literatures on resource redeployment and strategy in business ecosystems.

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Acknowledgements

Acknowledgments

We would like to express gratitude to our colleagues at the McCombs School of Business and the Stanford Technology Ventures Program for their insight and helpful feedback. We also thank the editors of this special issue, and the executives without whom this research would not have been possible. Research support provided by the Stanford Technology Ventures Program and the Mackenzie Family Fellowship Fund at Stanford University. All errors are our own.

Citation

Hannah, D.P., Bremner, R.P. and Eisenhardt, K.M. (2016), "Resource Redeployment in Business Ecosystems", Resource Redeployment and Corporate Strategy (Advances in Strategic Management, Vol. 35), Emerald Group Publishing Limited, Leeds, pp. 19-48. https://doi.org/10.1108/S0742-332220160000035003

Publisher

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Emerald Group Publishing Limited