Ecosystems as systems and business models as modules: a conceptualization

Purpose The purpose of this study is to bring conceptual clarity to the business model and ecosystem literature. Design/methodology/approach The paper uses a systems thinking approach to develop a conceptualization of business model and ecosystem constructs that seeks to integrate their divergent literature streams. Findings This paper posits that ecosystems and business models are concepts that emerged simultaneously for the same reasons. They also share several common attributes, while being firm-centric and industry-centric concepts respectively. This study expounds the relationship between the two, classifying them as distinct levels within a single dimension. Research limitations/implications The contribution of this study is in bringing conceptual clarity to these widely used terms and providing direction for the integration of their divergent literature streams. Practical implications This paper also offers heuristics to help practitioners understand how the viability of a system rests, to a great extent, on the alignment of its modular configuration. Originality/value Building on this understanding, the study suggests that business models and ecosystems together exhibit a clear system–module relationship, where business models, rather than firms per se , represent units within their respective ecosystems. Furthermore, it explains why sustaining system-level equilibrium is contingent on facilitating value appropriation at the modular level.