Abstract
Prior research on digital ecosystems focuses on the focal firm (e.g., a platform owner) its ecosystem governance. However, there is a dearth of literature examining the non-focal actor, i.e., an ecosystem participant who is at the periphery of a digital ecosystem. This paper proposes a theoretical perspective of the non-focal firm€™s participation across digital ecosystems for cultivating its innovation habitat through capability search redeem. Capability search involves the location of external capability deemed valuable for extending the firm€™s innovation habitat. Capability redeem refers to the firm€™s use of external capability to develop, distribute, and/or monetize its products services. We generate sensitize the proposed perspective in the context of Sony Ericsson€™s innovation habitat by interpreting the mobile device manufacturer€™s participation across four digital ecosystems (Visual Basic, Java, Digital Music, Android). Our findings suggest that the non-focal actor cannot rely on a single ecosystem for addressing all relevant layers of innovation. It benefits from pursuing a pluralistic strategy, operating across digital ecosystems to avoid investing all efforts in the same ecosystem. The model of ecosystem capability search redeem, which is a result of ideographic research explanation, extends current perspectives on digital ecosystems contributes to the emerging literature in the digital age.
