Influence Of Perceived Business Ecosystem Value On Intention To Use New E-services: The Case Of Yandex
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STATEMENT ABOUT THE INDEPENDENT CHARACTER OF THE MASTER THESIS 2
ABSTRACT 3
АННОТАЦИЯ 4
INTRODUCTION 5
Research motivation and research gap 5
Research goal and questions 7
CHAPTER 1. OVERVIEW OF THEORETICAL BACKGROUND 9
1.1 Business Ecosystem Value Creation theory overview 9
1.2. Overview of Theory of Consumption Value 24
1.3 Domain-Specific innovativeness and generation Z consumption 32
1.4 Overview of ecosystems in Russia 36
1.5 Final research model 40
1.6 Summary of Literature review 42
CHAPTER 2. METHODOLOGY 45
2.1 Case of Yandex 46
2.2 Research model constructs 48
2.3 Summary of research constructs 58
2.4. Data gathering 60
2.5 Assumption test 64
CHAPTER 3. DATA ANALYSIS AND RECOMMENDATIONS 66
3.1 Exploratory factor analysis 66
3.2 Confirmatory Factor Analysis (CFA) 68
3.3 Structural equation modelling 74
3.4 Discussion and implications 82
CONCLUSION 91
References 93
Appendix A 107
Appendix B 108
Appendix C 109
Appendix D 111
Appendix E 117
ABSTRACT 3
АННОТАЦИЯ 4
INTRODUCTION 5
Research motivation and research gap 5
Research goal and questions 7
CHAPTER 1. OVERVIEW OF THEORETICAL BACKGROUND 9
1.1 Business Ecosystem Value Creation theory overview 9
1.2. Overview of Theory of Consumption Value 24
1.3 Domain-Specific innovativeness and generation Z consumption 32
1.4 Overview of ecosystems in Russia 36
1.5 Final research model 40
1.6 Summary of Literature review 42
CHAPTER 2. METHODOLOGY 45
2.1 Case of Yandex 46
2.2 Research model constructs 48
2.3 Summary of research constructs 58
2.4. Data gathering 60
2.5 Assumption test 64
CHAPTER 3. DATA ANALYSIS AND RECOMMENDATIONS 66
3.1 Exploratory factor analysis 66
3.2 Confirmatory Factor Analysis (CFA) 68
3.3 Structural equation modelling 74
3.4 Discussion and implications 82
CONCLUSION 91
References 93
Appendix A 107
Appendix B 108
Appendix C 109
Appendix D 111
Appendix E 117
Research motivation and research gap
The rapidly evolving business environment has compelled companies to seek competitiveness and outperform their competitors. The advent of the internet and the era of information technology have introduced numerous changes to established norms. Over the past two decades, every aspect of business has undergone significant transformations: marketing approaches, resource management, value creation, and even organizational structures, with many companies becoming decentralized and employing globally distributed workforces.
One of the areas where revolutionary changes have occurred in terms of business organization is strategy and structure. Current trends require companies to prioritize the quality of their decisions, carefully and accurately research the market, and design and create products that best resonate with their customers. One concept that companies are increasingly adopting to shape their structure and ensure their competitive advantage is the notion of business ecosystems.
A business ecosystem can be thought of as a dynamic network of interconnected organizations, stakeholders, and resources that collaborate to create and deliver value to customers. It goes beyond traditional supply chains and incorporates a broader ecosystem perspective that encompasses customers, partners, suppliers, and even competitors. Business ecosystems provide the actors with a competitive advantage through the facilitation of collaboration, innovation, and the creation of mutually beneficial relationships, enabling companies to leverage their collective strengths and deliver superior customer experiences.
While there are various types of business ecosystems, this study aims to focus on productbased digital business ecosystems (DBEs). This type of ecosystem allows for a holistic view of value creation through a combination of value propositions that leverage positive perceived value by consumers. Additionally, the integration and exchange of data and information among participants in DBE enables rapid response to changing needs and the adjustment of value propositions through the creation of new services, the provision of new features, or the inclusion of new participants. The DBE approach has proven valuable for further differentiation and diversification of business activities, demonstrating a new form of relationship between business partners that leads to improved competitive advantage.
As an example, Amazon, with its extensive ecosystem comprising sellers, logistics providers, and service providers, has transformed the retail industry. Through its ecosystem, Amazon offers customers a seamless and integrated experience, from browsing and purchasing products to fast and efficient delivery. By leveraging the capabilities and resources of its ecosystem partners, Amazon has created a unique value proposition that combines convenience, extensive product selection, and reliable service.
Despite the growing popularity of business ecosystems, there remains a pressing need for empirical and quantitative research to validate and expand our understanding of their effectiveness. Currently, a significant portion of the existing literature on business ecosystems is primarily conceptual, focusing on theoretical frameworks and qualitative analyses of individual cases. Moreover, given that DBE involves the use of various e-services by consumers, it is particularly important to examine their perception of e-services and IT products from their unique perspective.
Additionally, there is the urgency and necessity of understanding Generation Z's behavior within digital business ecosystems. Previous research in this area has been limited, emphasizing the need for focused studies specifically on Generation Z within the context of digital business ecosystems. Such research can yield valuable insights into how Generation Z perceives and evaluates these ecosystems, enabling ecosystem participants to develop strategies and personalized experiences that effectively cater to their distinct preferences.
Therefore, to advance the field and provide actionable insights for practitioners, a deeper understanding of Generation Z customers' perceptions of the value of business ecosystems is essential. This is particularly needed in order for practitioners to construct their value proposition and adjust it to Generation Z, which is unique in terms of its relationship with information technology and perception. It is therefore particularly important to understand the factors that drive their intention to use ecosystems and how they perceive the value of ecosystems.
We will examine Yandex as a representative example of a digital business ecosystem. Yandex encompasses a wide range of services catering to diverse consumer segments. Within this ecosystem, the actors demonstrate co-evolutionary characteristics as they simultaneously compete and cooperate to attract customers. Orchestration is facilitated by a focal actor, ensuring seamless coordination among the ecosystem participants. The services offered are complementary, enabling the exchange of data and information, which is utilized to maintain relevance and adapt the value proposition for clients. In terms of criteria used in the literature on business ecosystems, this example of Yandex outperforms other ecosystems in Russia, showcasing superior qualities in various aspects.
In conclusion, the emergence of business ecosystems represents a transformative shift in organizational structure and strategy. Therefore, empirical and quantitative research is necessary to validate and expand our understanding of their effectiveness in meeting customer needs and driving competitive advantage. This study aims to fill this gap by examining customer perceptions and the integrated value propositions within business ecosystems, thereby contributing to the ongoing evolution and practical application of ecosystem thinking in the business world.
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The rapidly evolving business environment has compelled companies to seek competitiveness and outperform their competitors. The advent of the internet and the era of information technology have introduced numerous changes to established norms. Over the past two decades, every aspect of business has undergone significant transformations: marketing approaches, resource management, value creation, and even organizational structures, with many companies becoming decentralized and employing globally distributed workforces.
One of the areas where revolutionary changes have occurred in terms of business organization is strategy and structure. Current trends require companies to prioritize the quality of their decisions, carefully and accurately research the market, and design and create products that best resonate with their customers. One concept that companies are increasingly adopting to shape their structure and ensure their competitive advantage is the notion of business ecosystems.
A business ecosystem can be thought of as a dynamic network of interconnected organizations, stakeholders, and resources that collaborate to create and deliver value to customers. It goes beyond traditional supply chains and incorporates a broader ecosystem perspective that encompasses customers, partners, suppliers, and even competitors. Business ecosystems provide the actors with a competitive advantage through the facilitation of collaboration, innovation, and the creation of mutually beneficial relationships, enabling companies to leverage their collective strengths and deliver superior customer experiences.
While there are various types of business ecosystems, this study aims to focus on productbased digital business ecosystems (DBEs). This type of ecosystem allows for a holistic view of value creation through a combination of value propositions that leverage positive perceived value by consumers. Additionally, the integration and exchange of data and information among participants in DBE enables rapid response to changing needs and the adjustment of value propositions through the creation of new services, the provision of new features, or the inclusion of new participants. The DBE approach has proven valuable for further differentiation and diversification of business activities, demonstrating a new form of relationship between business partners that leads to improved competitive advantage.
As an example, Amazon, with its extensive ecosystem comprising sellers, logistics providers, and service providers, has transformed the retail industry. Through its ecosystem, Amazon offers customers a seamless and integrated experience, from browsing and purchasing products to fast and efficient delivery. By leveraging the capabilities and resources of its ecosystem partners, Amazon has created a unique value proposition that combines convenience, extensive product selection, and reliable service.
Despite the growing popularity of business ecosystems, there remains a pressing need for empirical and quantitative research to validate and expand our understanding of their effectiveness. Currently, a significant portion of the existing literature on business ecosystems is primarily conceptual, focusing on theoretical frameworks and qualitative analyses of individual cases. Moreover, given that DBE involves the use of various e-services by consumers, it is particularly important to examine their perception of e-services and IT products from their unique perspective.
Additionally, there is the urgency and necessity of understanding Generation Z's behavior within digital business ecosystems. Previous research in this area has been limited, emphasizing the need for focused studies specifically on Generation Z within the context of digital business ecosystems. Such research can yield valuable insights into how Generation Z perceives and evaluates these ecosystems, enabling ecosystem participants to develop strategies and personalized experiences that effectively cater to their distinct preferences.
Therefore, to advance the field and provide actionable insights for practitioners, a deeper understanding of Generation Z customers' perceptions of the value of business ecosystems is essential. This is particularly needed in order for practitioners to construct their value proposition and adjust it to Generation Z, which is unique in terms of its relationship with information technology and perception. It is therefore particularly important to understand the factors that drive their intention to use ecosystems and how they perceive the value of ecosystems.
We will examine Yandex as a representative example of a digital business ecosystem. Yandex encompasses a wide range of services catering to diverse consumer segments. Within this ecosystem, the actors demonstrate co-evolutionary characteristics as they simultaneously compete and cooperate to attract customers. Orchestration is facilitated by a focal actor, ensuring seamless coordination among the ecosystem participants. The services offered are complementary, enabling the exchange of data and information, which is utilized to maintain relevance and adapt the value proposition for clients. In terms of criteria used in the literature on business ecosystems, this example of Yandex outperforms other ecosystems in Russia, showcasing superior qualities in various aspects.
In conclusion, the emergence of business ecosystems represents a transformative shift in organizational structure and strategy. Therefore, empirical and quantitative research is necessary to validate and expand our understanding of their effectiveness in meeting customer needs and driving competitive advantage. This study aims to fill this gap by examining customer perceptions and the integrated value propositions within business ecosystems, thereby contributing to the ongoing evolution and practical application of ecosystem thinking in the business world.
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The modern business environment is rapidly evolving, leading to changes and transformations in many concepts that have been the status quo for decades. One of the new perspectives on structure and strategy is the business ecosystem. A business ecosystem is a system of interconnected participants and actors through a network structure, with the presence of complementors who come together to formulate a customer-facing value proposition. While the concept of a business ecosystem was introduced in 1991 by Moore, it has gained renewed attention with the development of digital ecosystems, which are particularly rapidly growing in the Russian business environment.
In the academic sphere, there is a growing body of research on this concept. However, many studies have pointed out the need for empirical validation of their findings, as the majority of research conducted so far has been conceptual. This raises an important question, especially in the context where the top 7 most valuable companies in the world are ecosystems. Moreover, only 10% of ecosystems are successful, while 90% of them fail or incur losses. Therefore, the need for empirical quantitative research has been identified.
A quantitative study on user preferences in the context of digital business ecosystems and Generation Z was conducted. The research aimed to identify the factors influencing the intention to use new services within a digital ecosystem through consumption value.
The first chapter focused on the research context, exploring the emergence and development of the theory of business ecosystems. Factors that distinguish business ecosystems from other strategic and structural concepts were examined, with a particular emphasis on the unique processes within an ecosystem, focusing on the concept of value creation and the formation of an integrated customer-facing value proposition. The chapter specifically addressed the onesided product-based ecosystems, as this type of ecosystem is highly relevant in the Russian business environment and allows for a clear understanding of the influence of individual complementors on the integrated value perceived by customers.
The chapter then bridged the gap between value creation within an ecosystem and the perceived value by consumers. After considering other models explaining intention to use, the choice of the theory of consumption values was justified. In addition to the aforementioned theories, synergy creation tools in ecosystems, such as loyalty incentives in the form of cashback and multi-service subscriptions, were also examined. The chapter concluded by justifying the research focus on Generation Z and providing a thorough description of the unique characteristics associated with this generation, such as innovativeness, as well as the related issue of digital addiction. Hypotheses for quantitative testing were formulated after introduction of each theory.
The second chapter focused on the methodological description of the study. The Yandex ecosystem was chosen as an example for the research since it is the most developed ecosystem that best fits the criteria outlined in the first chapter. Constructs were formulated, operationalized, and adapted to the context of business ecosystems and e-services. After a trial survey, which involved the composition, validation, and elimination of multivariate outliers, a convenience sample of 271 questionnaires was distributed among Generation Z.
The third chapter involved the exploratory and confirmatory validation of the measurement model and factors used in the proposed research model. A comparison between multidimensional and unidimensional models was conducted, resulting in the finding that the multidimensional second-order model better explains intention than the unidimensional model. Both models exhibited valid model fit, and an analysis of direct effects was conducted to test the relevant hypotheses. A multi-group analysis based on variables such as subscription to Yandex Plus, digital addiction, and loyalty incentives was also performed.
As a result of the third chapter, four hypotheses were confirmed, while four hypotheses were rejected. The final effects had a significant impact, and the model accounted for 55% of the explained variation in intention to use, considering value dimensions and product innovativeness in the IT domain. The results validated the application of Total Consumption Value (TCV) to the concept of digital business ecosystems, with social, usefulness, novelty and hedonic values proving to be valid and distinctive facets of consumption value. Additionally, controversial findings regarding Generation Z's innovativeness were brought to light, highlighting the need for future investigation.
The end of the third chapter consisted of a discussion of the theoretical and managerial contributions, as well as the formulation of prospects for future research. The results revealed a significant number of managerial implications, emphasizing the pressing need for more empirical and quantitative research targeting ecosystem customers.
In the academic sphere, there is a growing body of research on this concept. However, many studies have pointed out the need for empirical validation of their findings, as the majority of research conducted so far has been conceptual. This raises an important question, especially in the context where the top 7 most valuable companies in the world are ecosystems. Moreover, only 10% of ecosystems are successful, while 90% of them fail or incur losses. Therefore, the need for empirical quantitative research has been identified.
A quantitative study on user preferences in the context of digital business ecosystems and Generation Z was conducted. The research aimed to identify the factors influencing the intention to use new services within a digital ecosystem through consumption value.
The first chapter focused on the research context, exploring the emergence and development of the theory of business ecosystems. Factors that distinguish business ecosystems from other strategic and structural concepts were examined, with a particular emphasis on the unique processes within an ecosystem, focusing on the concept of value creation and the formation of an integrated customer-facing value proposition. The chapter specifically addressed the onesided product-based ecosystems, as this type of ecosystem is highly relevant in the Russian business environment and allows for a clear understanding of the influence of individual complementors on the integrated value perceived by customers.
The chapter then bridged the gap between value creation within an ecosystem and the perceived value by consumers. After considering other models explaining intention to use, the choice of the theory of consumption values was justified. In addition to the aforementioned theories, synergy creation tools in ecosystems, such as loyalty incentives in the form of cashback and multi-service subscriptions, were also examined. The chapter concluded by justifying the research focus on Generation Z and providing a thorough description of the unique characteristics associated with this generation, such as innovativeness, as well as the related issue of digital addiction. Hypotheses for quantitative testing were formulated after introduction of each theory.
The second chapter focused on the methodological description of the study. The Yandex ecosystem was chosen as an example for the research since it is the most developed ecosystem that best fits the criteria outlined in the first chapter. Constructs were formulated, operationalized, and adapted to the context of business ecosystems and e-services. After a trial survey, which involved the composition, validation, and elimination of multivariate outliers, a convenience sample of 271 questionnaires was distributed among Generation Z.
The third chapter involved the exploratory and confirmatory validation of the measurement model and factors used in the proposed research model. A comparison between multidimensional and unidimensional models was conducted, resulting in the finding that the multidimensional second-order model better explains intention than the unidimensional model. Both models exhibited valid model fit, and an analysis of direct effects was conducted to test the relevant hypotheses. A multi-group analysis based on variables such as subscription to Yandex Plus, digital addiction, and loyalty incentives was also performed.
As a result of the third chapter, four hypotheses were confirmed, while four hypotheses were rejected. The final effects had a significant impact, and the model accounted for 55% of the explained variation in intention to use, considering value dimensions and product innovativeness in the IT domain. The results validated the application of Total Consumption Value (TCV) to the concept of digital business ecosystems, with social, usefulness, novelty and hedonic values proving to be valid and distinctive facets of consumption value. Additionally, controversial findings regarding Generation Z's innovativeness were brought to light, highlighting the need for future investigation.
The end of the third chapter consisted of a discussion of the theoretical and managerial contributions, as well as the formulation of prospects for future research. The results revealed a significant number of managerial implications, emphasizing the pressing need for more empirical and quantitative research targeting ecosystem customers.
