Institutional change and routine dynamics in service ecosystems

PurposeThis study aims to understand and explain how institutional change occurs at the level of value co-creation practices in service ecosystems. Despite the centrality of collective practices to the service ecosystems perspective, theoretically grounded explanations of how practices change and become institutionalized remain underdeveloped. Applying the theory of routine dynamics, this paper addresses two questions as follows: what does the institutional change mean at the level of value co-creation practices and what processes underlie these changes?Design/methodology/approachThe study develops a conceptual framework that characterizes value co-creation practices as routines involving three aspects, namely, ostensive, performative and artifactual. As a key element in institutional change, the interplay between these informs an account of institutional change processes in service ecosystems.FindingsThe proposed conceptual framework specifies the conditions for institutional change in terms of value co-creation routines. First, any such change is seen to be grounded in alignment between changing institutional rules and the ostensive, performative and artifactual aspects of routines. Second, this alignment is seen to emerge through a dialectics of planned and practice-based activities during institutional change. An empirical research agenda is proposed for the analysis of institutional change processes in different service ecosystems.Originality/valueThis conceptual framework extends existing accounts of how service ecosystems change through the contributions of multiple actors at the level of value co-creation practices