How a coffee shop increases the welfare of societies through ecosystem orchestration: A dynamic capabilities perspective

This research analyses how a service firm develops an ecosystem and serves as the orchestrator. A unique coffee shop in a mountainous area was used as the subject because it has abundant resources to become an orchestrator and various distinctive traits. A single case study design was selected to enable researchers to analyse depth and rich data, covering all participants within the ecosystem. Using a holistic case study design enables investigators to explore complex interplays of ecosystem participants. This study demonstrates that a firm uses elements of dynamic capabilities to manage the evolving process of ecosystem dynamics, starting from the initial formation of the ecosystem to the maturity stage. Our analysis identifies what derivative capabilities can be created from each element of dynamic capabilities and how these derivative capabilities are employed for developing and managing partners involved in the ecosystem. This study establishes a contribution by examining a coffee shop, representing a small service firm, and its evolution into an ecosystem orchestrator role - an under-explored setting in prevailing orchestration literature concentrated on large platform corporations. Single case studies are often criticized because their generalizability is thin and their findings are narrow. However, this weakness has led to the advantage of presenting insights in detail and depth. Key Words: dynamic capabilities, ecosystem orchestration, collaborative innovation, value co-creation