Strategies for managing power relationships in software ecosystems

Abstract

Building a software ecosystem provides companies with business benefits as well as share risks and costs with a network of partners. The ability to establish successful partnerships with other companies can influence the success or failure of the ecosystem. Companies use power to build alliances and strengthen their position in the ecosystem. However, the inappropriate use of power may create tensions that threaten partnerships. To explore the dynamics of power and dependence in software ecosystems, we conducted three case studies of ecosystems formed by small-to-medium enterprises. As a result, we present a set of hypotheses that explain the effects of power on software ecosystems. As theoretical contribution, we present a meta-model that integrates concepts from software ecosystems literature with constructs from classical power theories. Our practical contribution is a set of strategies that companies can employ to manage power relationships with partners, so that their ecosystems can evolve in a healthy and prosperous manner. By obtaining an understanding of the occurrence of power and dependence, companies can recognise how to exercise power and deal with the power from partners in order to leverage their relationships.