Striking dynamic balance between functional and structural sustainability in service ecosystems

Abstract Sustainable service provision in large-scale and complex ecosystems requires balancing structural resilience with functional alignment. This paper proposes a holistic framework for service ecosystem sustainability, conceptualizing these dual dimensions as (1) structural sustainability—the system’s capacity for self-maintenance and resilience—and (2) functional sustainability—the system’s ability to uphold the broader macrosystem it depends on. These concepts are integrated into a sustainability state map that distinguishes four possible holistic states, each reflecting unique challenges and opportunities. Building on complex adaptive systems theory and the notion of adaptive cycles, the paper illustrates how service ecosystems traverse these states as they respond to internal tensions and external pressures. We further explain how strategy models such as exploration-exploitation, ambidexterity, and creative destruction can deliberately guide service ecosystems between states to maintain—or recover—holistic sustainability. In doing so, the framework elucidates why sustainability is inherently dynamic and evolutionary, shaped by multilevel interactions spanning individuals, organizations, and societal institutions. Ultimately, we offer scholars, practitioners, and policymakers a diagnostic tool and a set of strategic interventions to navigate sustainability transitions more effectively in service ecosystems facing persistent social and environmental concerns.