Innovation Ecosystems and Cross-Sector Collaboration

Author(s):

Ingrid Bergström, Dr. Alejandro Mendez, Dr. Yukiko Sato, Dr. Hassan Al-Farsi

Affiliation: Institute for Innovation and Strategic Partnership Management, Global Business School, Stockholm, Sweden

Page No: 56-64

Volume issue & Publishing Year: Volume 3 Issue 1 , 2026-01-22

Journal: International Journal of Modern Engineering and Management | IJMEM

ISSN NO: 3048-8230

DOI: https://doi.org/10.5281/zenodo.18351730

Abstract:

The complexity of contemporary global challenges and market opportunities increasingly exceeds the capacity of individual organizations, necessitating the formation of innovation ecosystems characterized by cross-sector collaboration among businesses, academic institutions, government agencies, and non-governmental organizations. This comprehensive research investigates the design, governance, and performance outcomes of multi-stakeholder innovation ecosystems focused on sustainable value creation. Through a multi-method longitudinal study involving 94 innovation ecosystems across 32 countries and data collection from 1,427 participating organizations over a five-year period, this investigation reveals that effectively governed ecosystems generate 3.8 times greater innovation output and achieve solutions with 2.7 times broader societal impact compared to single-organization innovation approaches. The research identifies four distinct ecosystem archetypes—Challenge-Driven, Opportunity-Seeking, Capability-Building, and Transformation-Focused—each with unique partnership structures, value distribution mechanisms, and leadership requirements. Organizations participating in well-structured ecosystems report an average increase of 42.3% in access to complementary capabilities,

37.6% reduction in innovation risk through shared investment, and 31.4% acceleration in time-to-market for sustainable solutions. The study demonstrates that ecosystems employing adaptive governance models with clear decision rights, conflict resolution mechanisms, and equitable value distribution achieve 51.2% higher participant satisfaction and 44.7% greater ecosystem longevity. Digital collaboration platforms specifically designed for ecosystem coordination improve knowledge sharing by 58.9% and reduce partnership transaction costs by 39.4%, though they require significant investment in digital literacy and trust-building. However, significant ecosystem challenges persist, including misaligned objectives among partners affecting 63.7% of ecosystems, intellectual property conflicts in 54.2% of collaborations, power asymmetries undermining equitable participation in 48.9% of partnerships, and measurement difficulties quantifying ecosystem value in 72.3% of initiatives. This paper proposes the Innovation Ecosystem Design Framework encompassing purpose alignment, partnership architecture, governance mechanisms, value creation processes, and impact measurement systems. The research contributes to innovation and partnership theory by extending ecosystem and stakeholder collaboration perspectives to cross-sector contexts while providing evidence-based guidance for organizations seeking to leverage collaborative networks for sustainable innovation in increasingly interconnected global contexts

Keywords:

Innovation Ecosystems, Cross-Sector Collaboration, Multi-Stakeholder Partnerships, Sustainable Innovation, Ecosystem Governance, Value Co-Creation, Partnership Design, Open Innovation, Strategic Alliances, Social Innovation

 

Reference:

• [1] J. F. Moore, "The death of competition: Leadership and strategy in the age of business ecosystems," HarperBusiness, 1996.

• [2] R. Adner, "The wide lens: A new strategy for innovation," Penguin, 2012.

• [3] M. G. Jacobides, C. Cennamo, and A. Gawer, "Towards a theory of ecosystems," Strategic Management Journal, vol. 39, no. 8, pp. 2255–2276, 2018.

• [4] A. Gawer and M. A. Cusumano, "Industry platforms and ecosystem innovation," Journal of Product Innovation Management, vol. 31, no. 3, pp. 417–433, 2014.

• [5] C. Iansiti and R. Levien, "The keystone advantage: What the new dynamics of business ecosystems mean for strategy, innovation, and sustainability," Harvard Business School Press, 2004.

• [6] E. Autio and L. D. W. Thomas, "Innovation ecosystems: Implications for innovation management," in The Oxford Handbook of Innovation Management, M. Dodgson, D. M. Gann, and N. Phillips, Eds. Oxford University Press, 2014, pp. 204–228.

• [7] S. L. Brown and K. M. Eisenhardt, "The art of continuous change: Linking complexity theory and time-paced evolution in relentlessly shifting organizations," Administrative Science Quarterly, vol. 42, no. 1, pp. 1–34, 1997.

• [8] H. W. Chesbrough, "Open innovation: The new imperative for creating and profiting from technology," Harvard Business School Press, 2003.

• [9] J. West and M. Bogers, "Leveraging external sources of innovation: A review of research on open innovation," Journal of Product Innovation Management, vol. 31, no. 4, pp. 814–831, 2014.

• [10] R. Gulati, "Managing network resources: Alliances, affiliations, and other relational assets," Oxford University Press, 2007.

• [11] J. H. Dyer and H. Singh, "The relational view: Cooperative strategy and sources of interorganizational competitive advantage," Academy of Management Review, vol. 23, no. 4, pp. 660–679, 1998.

• [12] W. W. Powell, K. W. Koput, and L. Smith-Doerr, "Interorganizational collaboration and the locus of innovation: Networks of learning in biotechnology," Administrative Science Quarterly, vol. 41, no. 1, pp. 116–145, 1996.

• [13] P. R. Lawrence and J. W. Lorsch, "Organization and environment: Managing differentiation and integration," Harvard Business School Press, 1967.

• [14] J. G. March, "Exploration and exploitation in organizational learning," Organization Science, vol. 2, no. 1, pp. 71–87, 1991.

• [15] D. A. Levinthal and J. G. March, "The myopia of learning," Strategic Management Journal, vol. 14, no. S2, pp. 95–112, 1993.

• [16] I. Nonaka and H. Takeuchi, "The knowledge-creating company: How Japanese companies create the dynamics of innovation," Oxford University Press, 1995.

• [17] W. M. Cohen and D. A. Levinthal, "Absorptive capacity: A new perspective on learning and innovation," Administrative Science Quarterly, vol. 35, no. 1, pp. 128–152, 1990.

• [18] M. T. Hansen, "The search-transfer problem: The role of weak ties in sharing knowledge across organization subunits," Administrative Science Quarterly, vol. 44, no. 1, pp. 82–111, 1999.

• [19] R. S. Burt, "Structural holes and good ideas," American Journal of Sociology, vol. 110, no. 2, pp. 349–399, 2004.

• [20] M. S. Granovetter, "The strength of weak ties," American Journal of Sociology, vol. 78, no. 6, pp. 1360–1380, 1973.

Download PDF