Publication Type

Magazine Article

Version

publishedVersion

Publication Date

7-2024

Abstract

1. Suppliers can better protect their positions in an ecosystem by building stronger relationships with ‘complementors’, which are businesses that offer products or services that enhance the value of the core product. Such supplier-complementor alliances (SCAs) can enhance the value of the entire ecosystem, including that of the leader.

2. SCAs such as Nvidia-Adobe drive innovation by encouraging suppliers to develop products that cater to broader needs beyond the ecosystem leader’s specific demands. This strategic alignment between suppliers and complementors also ensures that suppliers build a more resilient and diversified business model.

3. SCAs present both opportunities and challenges within ecosystems–suppliers can benefit from increased bargaining power, which could be a challenge to the ecosystem leader. Effective management of SCAs is thus crucial for maintaining a healthy ecosystem.

Keywords

ecosystem, strategic alignment

Discipline

Entrepreneurial and Small Business Operations | Strategic Management Policy

Research Areas

Strategy and Organisation

Areas of Excellence

Innovation and Entrepreneurship

Publication

Asian Management Insights (Singapore Management University)

Volume

11

Issue

2

First Page

40

Last Page

47

ISSN

2315-4284

Publisher

Singapore Management University, Centre for Management Practice

City or Country

Singapore

Embargo Period

8-7-2024

Copyright Owner and License

Singapore Management University

Additional URL

https://cmp.smu.edu.sg/ami/issues/supplier-complementor-alliances

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