Orchestration is a style of coordinating loosely coupled (innovation) ecosystems and networks. The research field of orchestration is rapidly growing, but it is yet to consolidate. This slide set goes through the short history of innovation ecosystem orchestration, discusses some recent contributions, and points out to key future research themes.

1. INNOVATION ECOSYSTEM
ORCHESTRATION
Paavo Ritala
Professor of Strategy & Innovation
LUT University, Finland

2. 1001 WAYS TO LOOK AT ECOSYSTEMS

3. MAIN ECOSYSTEM CONCEPTS / LITERATURE STREAMS*
Ecosystem
construct
Main characteristics Closely related constructs /
overlapping discussions
Business
ecosystem
a) Business ecosystems emphasizing collaboration and
supply chain/network aspects
b) Business ecosystems emphasizing the co-evolution of
competition and collaboration in organizational fields
Business networks, strategic
networks, value networks/chains,
value nets
Innovation
ecosystem
a) Firm-centric innovation ecosystems related to the focal
actor and its value proposition, technology, platform, brand, etc.
b) National, regional or technological innovation ecosystems
Innovation networks (micro),
National and regional innovation
systems (macro)
Entrepreneurial
ecosystem
Start-up and entrepreneurial ecosystems that are often
located in particular geographical areas or around a certain
industry
(Entrepreneurial) clusters and
regions, National and regional
systems
Platform
ecosystem
Ecosystems typically owned or governed by a “hub actor” or “platform
leader” that connects various sides of markets to facilitate exchange
over a digital platform
Two- and multi-sided markets
Service
ecosystem
Ecosystems emphasizing the systemic and institutional nature of value
(co)creation with a focus on service exchange and resources
Product-service systems;
Service-dominant logic
* Adapted from Aarikka-Stenroos, L., & Ritala, P. (2017). Network management in the era of ecosystems:
Systematic review and management framework. Industrial Marketing Management, 67, 23-36.

4. ECOSYSTEM AS LENSES TO
COLLECTIVE VALUE CREATION

5. Ron Adner (2013) The Wide Lens: What successful innovators see that
others miss. Penguin Books.

6. https://www.bcg.com/publications/2019/
emerging-art-ecosystem-management

7. HOW TO COORDINATE
LOOSELY COUPLED
INNOVATION ECOSYSTEMS?

8. Loose coupling:
“a situation in which elements are responsive,
but retain evidence of separateness and
identity”
“a system that is both distinctive and
responsive”
Sources:
• Weick, K. E. (1976). Educational Organizations as Loosely Coupled Systems.
Administrative Science Quarterly, 21(1), 1-19.
• Orton, J. D., & Weick, K. E. (1990). Loosely coupled systems: A
reconceptualization. Academy of Management Review, 15(2), 203-223.

9. Shipilov, A., & Gawer, A.
(2020). Integrating research
on interorganizational
networks and ecosystems.
Academy of Management
Annals, 14(1), 92-121.
ILLUSTRATING LOOSE COUPLING IN ECOSYSTEMS

10. Orchestration:
The set of deliberate, purposeful
actions undertaken by the hub firm
as it seeks to create value (expand
the pie) and extract value (gain a
larger slice of the pie) from the
network.
Dhanaraj, C., & Parkhe, A. (2006).
Orchestrating innovation networks.
Academy of Management Review, 31(3), 659-669.

11. ➢ Orchestration by hub firms in
collaborative innovation settings (Dhanaraj
& Parkhe, 2006, AMR):
➢ Managing knowledge mobility
➢ Managing innovation appropriability
➢ Managing network stability
➢ Microfoundations of orchestration
capability?
➢ Individual skills and organizational
capabilities in innovation orchestration
(Ritala et al., 2009*)
*Ritala, P., Armila, L., & Blomqvist, K. (2009). Innovation orchestration capability—
Defining the organizational and individual level determinants. International Journal of
Innovation Management, 13(04), 569-591.

12. LAYERS AND PHASES OF ORCHESTRATION
Adapted from: Autio, E. (2022). Orchestrating ecosystems: a multi-layered framework.
Innovation, 24(1), 96-109.
Ecosystem
initiation
• Technological:
Optimize
connectivity
• Economic: Attract
participation
• Institutional:
Role definition
• Behavioral:
Dynamic control
Ecosystem
momentum
• Technological:
Maximize
generativity
• Economic: Drive
network effects
• Institutional:
Conflict resolution
• Behavioral:
Promote behavioral
norms
Ecosystem
control
• Technological:
Control bottlenecks
• Economic:
Extend leverage
• Institutional:
Regulatory
embedding
• Behavioral:
Ecosystem
leadership
Value co-discovery Value co-creation Value appropriation

13. ECOSYSTEM
COORDINATION TYPES:
“Management”
vs.
“Orchestration”

14. MANAGEMENT
ORCHESTRATION
Main coordination
mechanisms in
ecosystem emergence
Delegating roles and tasks
for ecosystem members,
setting up schedules
Motivating members to join
the ecosystem, ensuring
knowledge sharing,
communicating vision
Main coordination
mechanisms in
ecosystem maturity
Coordinating efficient
supply and demand
Maintaining the
ecosystem structure and
value capture from
innovation based on
individual & overall
ecosystem goals
Adapted and further modified from: Ritala, P., Hurmelinna-Laukkanen, P., & Nätti, S. (2012).
Coordination in innovation-generating business networks‐the case of Finnish Mobile TV
development. The Journal of Business and Industrial Marketing, 27(4), 324-334.

15. ORCHESTRATION AS
HUB-CENTRIC VS.
ALTER-ORIENTED
ACTIVITY?

16. Adapted from: Giudici, A., Reinmoeller, P., & Ravasi, D. (2018). Open-system orchestration
as a relational source of sensing capabilities: Evidence from a venture association.
Academy of Management Journal, 61(4), 1369-1402.
CLOSED-SYSTEM ORCHESTRATION OPEN-SYSTEM ORCHESTRATION
Orchestration orientation Directive, self-interested Pro-social, other-oriented
Value creation and
appropriation
Centralized coordination of innovation efforts,
and negotiated distribution of the benefits of
the collective output
Facilitation of decentralized and independent
entrepreneurial efforts, with local appropriation of
their benefits from members
Center vs. periphery
interaction
Harness (exploit) distributed resources and
capabilities of network members along a
centrally coordinated innovation effort
Provide shared resources and nurture capabilities
of network members to support dispersed
entrepreneurial efforts
Members’ admission (Relatively more) restricted: selection based
on network needs and member-specific
evaluation
(Relatively more) open: selection based on
potential members meeting network-specific
criteria
Members’ engagement Expected commitment to collective
innovation efforts, typically enforced
contractually
Voluntary ad hoc participation in network activities
Examples Hub firms, R&D consortia, Government-
sposored industrial programs
Incubators, National and regional agencies, SME
associations

17. ORCHESTRATION AS A PROCESS OF BROKERING
Ritala, P., De Kort, C., & Gailly, B. (2022). Orchestrating Knowledge Networks: Alter-Oriented Brokering.
Journal of Management.
Broker-centric approach Alter-oriented approach

18. An integrative definition
orchestration:
A set of activities and roles performed by a
hub actor (individual, team, or organization)
to coordinate independent network
members’ interactions within
a loosely coupled context
Ritala, P., De Kort, C., & Gailly, B. (2022).
Orchestrating knowledge networks: Alter-oriented brokering.
Journal of Management.

19. EMERGING RESEARCH THEMES
FOR ECOSYSTEM ORCHESTRATION
What is the right orchestration approach?
➢ Hub-centric vs alter-oriented
➢ Closed vs. open-system approach
➢ Orchestration practices (e.g. contractual, relational,
technological, cognitive, behavioral, institutional…)
Who orchestrates and whom?
➢ Centralized vs. distributed governance
➢ Individuals, teams, firms, communities as orchestrators?
Legitimacy of ecosystem orchestration*
➢ How does legitimacy emerge in ecosystems, and what is
the role of the orchestrating entity and other ecosystem
participants in this process?
*See also: Thomas, L. D., & Ritala, P. (2022). Ecosystem legitimacy emergence: A
collective action view. Journal of Management, 48(3), 515-541.

20. THANK YOU!
Paavo Ritala
Professor
LUT School of Business & Management
Email: ritala@lut.fi
Twitter: @PaavoRitala
LinkedIn: https://www.linkedin.com/in/paavo-ritala-6475a31/