Navigating tensions between value creation and capture in ecosystems

While scholars have recognized the importance of balancing value creation and capture for ecosystem success, achieving a balance between the two remains a challenge for focal firms. Based on this, we draw on exploratory multiple case study to examine four industrial firms in China and the ecosystems to which they are affiliated. We identify three important processes to balance value creation and value capture: (1) restatement of the value proposition; (2) refinement of the value co-creation process and (3) optimization of the value configuration mechanism. Moreover, we find that achieving a balance between value creation and value capture hinges on aligning the individual interests of ecosystem actors with the collective interests of the ecosystem, which requires simultaneous adjustments in the value proposition, value creation, and ecosystem governance and incentive. Our model contributes to the ecosystem literature while explaining the process of balancing value creation and value capture, as well as providing managerial insights for managers of firms in the ecosystem.