There is a need for firms to partner with certain suppliers/vendors and also effectively collaborate in the business ecosystem that they exist in order to be successful. This is true in general and more so for technology intensive products and services organizations. For a taxonomy of technologies, refer to the illustration here.
Partnership
A partnership is a formal, bilateral relationship between two organizations created to achieve a specific outcome such as:
• co-developing technology
• sharing distribution channels
• reducing costs
• accessing capabilities
Core Characteristics
- Bilateral (one-to-one)
- Contractual (signed agreements)
- Goal-specific (e.g., integrate payment gateway, co-market a product)
- Static (defined for a time period)
Ecosystem (Business Ecosystem)
An ecosystem is a dynamic, multi-actor system where firms co-create value through loosely coordinated but interdependent roles.
Core Characteristics
- Multi-lateral, many-to-many
- Role-based (complementors, platform leaders, niche players, integrators)
- Emergent value becomes bigger than any single firm’s contribution
- Adaptive and evolutionary, not fixed
- Governance is decentralized or platform-driven
Key Differences
| Aspect | Partnership | Ecosystem |
| Scope & Structure | Limited Scope; Bilateral | Broad and interconnected; Often spanning industries |
| Value Creation Logic | Value from resource sharing and contract-based cooperation | Value from co-evolution, knowledge spillover, and platform effects |
| Governance and Power | Formal agreements, specific roles | Distributed |
Illustration of “Partnership vs. Ecosystem”: the mobile device industry
Partnership (Bilateral Relationships)
A partnership in the mobile device industry is a specific, one-to-one collaboration that helps accomplish a clear operational or strategic task.
Examples
A. Apple ↔ TSMC
• Apple partners with TSMC to manufacture A-series and M-series chips.
• Nature: One-to-one, contract-driven, long-term supply partnership.
B. Samsung ↔ Corning
• Samsung uses Corning Gorilla Glass for displays.
• Nature: Component-supplier partnership.
C. Xiaomi ↔ Qualcomm
• Xiaomi licenses Snapdragon chipsets.
• Nature: Licensing + engineering support partnership.
D. Google ↔ Telcos (Airtel, Verizon)
• Partnerships to pre-install Google services or support carrier billing.
Ecosystem (Multi-lateral Value Network)
A mobile device ecosystem is a complex, interconnected system of many players creating joint value—far beyond any single partnership.
Ecosystems include:
• Platform leaders (keystones)—Apple, Google, Qualcomm
• Complementors—app developers, accessories manufacturers
• Niche players—sensor suppliers, UI/UX innovators
• Regulators—government telecom authorities
• Competitors—who also collaborate (Co-opetition)
Example: Android Ecosystem
An ecosystem includes all these actors interacting simultaneously:
- Platform Leader (Keystone)
• Google → Android OS, Play Store, APIs, security patches. - Device Makers
• Samsung, Xiaomi, Vivo, Motorola, OnePlus
• License Android + add their UI layers (OneUI, MIUI) - Semiconductor Vendors
• Qualcomm (Snapdragon)
• MediaTek (Dimensity)
• Samsung (Exynos) - App Developers (Complementors)
• Meta, Spotify, Uber
• They innovate on top of platform APIs. - Accessory Ecosystem
• JBL, Anker, Belkin, smartwatch makers, IoT devices - Telcos
• Jio, Airtel, AT&T, Verizon for distribution, 5G support, carrier billing - Regulators
• TRAI, FCC, EU regulators shaping device and data rules - End Consumers
• Co-create value via usage data, reviews, feedback
Co-opetition: Samsung competes with Google in devices but uses Android
| Feature | Partnership Example | Ecosystem Example |
| Type | One-to-one Apple ↔ Foxconn | Many-to-many Entire Apple/iOS ecosystem |
| Goal | Manufacture iPhones | Co-create integrated experience |
| Governance | Contract | Platform governance |
| Value | Creation Cost, speed, quality | Innovation, network effects |
| Actors | 2 firms | Apps, devices, carriers, accessories, regulators |
In summary:
In the mobile device industry, a partnership is a specific two-company collaboration (e.g., Apple ↔ TSMC), whereas the ecosystem is the entire interconnected network of platform leaders, device makers, semiconductors, app developers, telcos, regulators, and consumers who co-create value (e.g., the iOS or Android ecosystem).
Activity: For a technology intensive product of your interest and its industry:
- Identify the need for partnerships and ecosystem(s) for it
- Give examples of partnerships and highlight relevant partnership characteristic and the benefits.
- Illustrate the ecosystem(s) that exist in that industry and highlight the benefits.
Reference Literature
Porter (1985) – Value Chain / Value System:
• Partnerships typically sit along the value chain: suppliers, distributors, etc.
James F. Moore (1993, HBR, “Predators and Prey”):
• Introduced the term business ecosystem.
• Ecosystems consist of suppliers, partners, customers, competitors, regulators – all evolving together. Ecosystems extend beyond traditional industry boundaries.
• Success depends on coevolution and shared visions.
Brandenburger & Nalebuff (1996) – Co-opetition:
• Partnerships may occur even with competitors, but remain transaction-focused.
Dyer & Singh (1998) – Relational View:
• Partnerships create relational rents through collaboration, trust, and resource-sharing.
• Value comes from specific investments, knowledge exchange, and governance mechanisms.
Iansiti & Levien (2004) – The Keystone Advantage
• Ecosystems revolve around platform leaders (keystones). They encourage innovation among many participants.
• Value emerges from network health: productivity, robustness, innovation.
Prahalad & Ramaswamy (2004) – Co-creation
• Ecosystems revolve around experience networks and value co-creation.
Dr. Selvaraj Vadivelu 