Open Innovation within Business Ecosystems: A Tale from Amazon.com

Open innovation refers to the ability of firms to open themselves up to external networks and relationships in order to gain the full potential of their investments in innovation. The development of ICTs has opened up new markets and ways of innovating. Today, platforms and Web services are supportive instruments of relations between firms. This paper analyzes how Amazon managed openness thanks to ICT infrastructure. In this paper, we address the challenge of managing open innovation within business ecosystems, especially those abetted by a new generation of technologies called Web services. We will draw lessons from Amazon.com to understand how this keystone organization is becoming nimble at open innovation, leveraging the power of its platform thanks to its Web services package. The case study shows that by using Web services to enhance collaboration in business ecosystems, some companies could support open innovation and expand the value of the goods and services they deliver to customers. The paper concludes with a suggested research agenda dealing with the significant implications for both strategy and policy.