ECOSYSTEMS AND NEW COMPETITION: “CHICKEN-AND-EGG” PHENOMENON

Abstract

The economy transformation is reflected in the evolution of the business organization forms from hierarchy to ecosystems. This transformation is at the same time associated with changes in the competition terms: price and quality of the products fall by the wayside, while the offer differentiation and customization, the speed of innovation introduction are gaining significance. The most successful in the markets are businesses that can offer a wide range of products and services in one system. Thus, there is a two-sided effect: new competition makes companies fit into (or create) ecosystems, which in turn change markets. The methodological basis of the research is represented by the process and ecosystem approaches in terms of ecosystems functioning analysis, as well as neo-institutional economic theory, economic sociology and management theories in the context of the new competition provisions development. The paper employs the methods of semantic, bibliometric and comparative analysis, formalization and systematization. The result of studying the specific features of market interaction of ecosystems is the justified existence and presented model of new competition. It is considered as reinforcing framework of ecosystems development due to changes in endogenous factors and increased innovation rate. The key conditions for the competitiveness of a business are embeddedness in an ecosystem (in certain cases - their own ecosystems creation); the ability to use collective knowledge to generate innovations and shape new trends; continuous self-development process; a combination of material and digital elements of the business model and a specific organizational culture. The model of new competition can underpin further theoretical and applied research in the field of studying the ecosystems evolution, especially in terms of combining material and digital technologies.