Managing Strategic Tensions in the Development of Organizational Ecosystems

Abstract

The paper explores the key strategic tensions in the development of organizational ecosystems as well as the applied responses. It presents a conceptual overview of the key tension areas faced by the coordinators of complex inter-organizational systems and the results of empirical case studies conducted in knowledge-intensive industrial clusters in Lithuania (in the fields of high-technologies, information and communications technology, medical innovations and wellness products, cinema and game industries, machinery production and tourism). The research presented in the paper identifies eight strategic tensions faced by the leaders responsible for the development of organizational ecosystems: (1) focused interventionism vs. self-organization; (2) hierarchy-based structures vs. network-based (eco)systems; (3) under-connectedness vs. over-connectedness; (4) central rules vs. emerging metanorms; (5) short-term vs. long-term orientation; (6) focus on elements vs. relationships in the system; (7) big wins vs. small wins; and (8) exploitation vs. exploration. Case studies and expert interviews with the coordinators of different industrial clusters revealed the diversity of adopted approaches. The more mature the social and industrial context of the industrial cluster is, the less pronounced are the strategic tensions, and there is less need for focused interventions. In cases where such interventions are needed, the leaders of ecosystems adopt one of the following approaches: (1) take a position on one of the extremes by seeking to leverage the situation; (2) adopt a trade-off approach by seeking a point of balance; (3) capitalize on both extremes at the same time. The adopted approach may vary from one strategic tension to another within the same organizational ecosystem.