More from these Authors

• Supplement | HBS Case Collection | March 2019

  The Atlanta Opera (B): New (and Old) Challenges

  Michael L. Tushman and Kerry Herman

  Citation:

  Tushman, Michael L., and Kerry Herman. "The Atlanta Opera (B): New (and Old) Challenges." Harvard Business School Supplement 419-025, March 2019.  View Details

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• Supplement | HBS Case Collection | March 2019

  The Atlanta Opera (C): A Duet

  Michael L. Tushman and Kerry Herman

  Citation:

  Tushman, Michael L., and Kerry Herman. "The Atlanta Opera (C): A Duet." Harvard Business School Supplement 419-026, March 2019.  View Details

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• Working Paper | HBS Working Paper Series | 2019

  Managed Ecosystems and Translucent Institutional Logics: Engaging Communities

  Elizabeth J. Altman, Frank Nagle and Michael Tushman

  When organizations need input into their innovation or production process, they have traditionally faced the decision to make the input themselves or buy it through the market. However, rapidly decreasing information costs allow firms to harness external communities that are neither employees of the firm hierarchy, nor traditional contracted market participants such as supply chain partners. We introduce the managed ecosystem governance form in which a central organization engages external communities and also manages these communities by maintaining some degree of control over their activities. This model is evident in various organizational approaches including multi-sided platforms, crowdsourcing, and the gig economy. Building upon the knowledge-based view of the firm, we argue that these increasingly common governance models offer a wealth of opportunities but require organizations to adopt a translucent institutional logic that is in-between the traditional closed logic of the firm and the open logic of the market. To successfully employ this model, firms must learn to shepherd communities, leverage them without exploiting them, and share intellectual property rights.

  Keywords: Managed Ecosystems; Open and User Innovation Strategy; Governance; Multi-Sided Platforms;

  Citation:

  Altman, Elizabeth J., Frank Nagle, and Michael Tushman. "Managed Ecosystems and Translucent Institutional Logics: Engaging Communities." Harvard Business School Working Paper, No. 19-096, February 2019.  View Details

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