Creating and applying the Ecosystem Pie Model as a design theory

Innovation ecosystems have become pivotal phenomena in a world of increasing specialization and complexity, in which single ventures cannot develop and commercialize technology-driven value propositions alone. In this setting, various firms and other actors need to work together in creating and building an innovation ecosystem around a shared value proposition. The Ecosystem Pie Model (EPM), published in Long Range Planning in 2020, is the first comprehensive tool for mapping and assessing the risk profile of a prospective innovation ecosystem. We describe, and reflect on, how the so-called design theory underlying the EPM was developed. This design theory includes its key constructs, design principles, visual instantiation, detailed application guidelines, and assessment of how mutable its applications are. The initial design theory was used to develop more than 240 ecosystem constellations to assess its applicability and mutability. We also outline various applications of EPM design theory by others. Overall, this paper contributes to the entrepreneurship and innovation literature by developing a complete design theory, one that covers the entire spectrum from theoretical underpinnings to detailed application guidelines and an initial body of applications.