Designing incentive systems for participation in digital ecosystems—An integrated framework

Mihale-Wilson, C is ina; Ca l, K. Vale ie
A icle — Published Ve sion
Designing incen i e sys ems o pa icipa ion in digi al
ecosys ems—An in eg a ed amewo k
Elec onic Ma ke s
P o ided in Coope a ion wi h:
Sp inge Na u e
Sugges ed Ci a ion: Mihale-Wilson, C is ina; Ca l, K. Vale ie (2024) : Designing incen i e sys ems o
pa icipa ion in digi al ecosys ems—An in eg a ed amewo k, Elec onic Ma ke s, ISSN 1422-8890,
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RESEARCH PAPER
Designing incen i e sys ems o pa icipa ion indigi al
ecosys ems—An in eg a ed amewo k
C is inaMihale‑Wilson1 · K.Vale ieCa l1
Recei ed: 15 Feb ua y 2023 / Accep ed: 12 Feb ua y 2024 / Published online: 28 Feb ua y 2024
© The Au ho (s) 2024
Abs ac
Digi al ecosys ems a e a highly ele an phenomenon in con empo a y p ac ice, o e ing unp eceden ed alue c ea ion oppo -
uni ies o bo h companies and consume s. Howe e , he success o hese ecosys ems hinges on hei abili y o es ablish he
app op ia e incen i e sys ems ha a ac and engage di e se ac o s. Following he no ion ha se ing “ he igh ” incen i es is
essen ial o o ming and g owing digi al ecosys ems, his a icle p esen s an in eg a ed amewo k ha suppo s schola s and
p ac i ione s in iden i ying and o ches a ing incen i es in o powe ul incen i e sys ems ha encou age ac i e pa icipa ion
and engagemen . This amewo k emphasizes he impo ance o unde s anding how indi iduals and g oups a e mo i a ed o
engage in he ecosys em o incen i ize hem e ec i ely. To demons a e i s applicabili y and alue, we show i s applica ion
in he con ex o an eme gen digi al ecosys em wi hin he Sma Li ing domain.
Keywo ds Incen i e sys em design· Digi al ecosys em pa icipa ion· Company incen i es· Consume incen i es·
Incen i e o ches a ion
JEL classi ica ion 03/039
In oduc ion
In oday’s highly compe i i e business en i onmen , digi al
ecosys ems (DEs) a e a pa hway o success and g ow h (Sub-
amaniam e al., 2019). As digi al coun e pa s o na u al
ecosys ems, digi al ecosys ems a e sel -o ganizing, obus ,
and scalable en i onmen s whe e a ious species (i.e., ha d-
wa e, so wa e, pla o ms, consume s, and companies) in e -
ac wi h each o he o sol e complex p oblems (Hein e al.,
2020; Teece, 2018). DEs can also be desc ibed as dynamic
mul i-playe en i onmen s whe e alue co-c ea ion elies
hea ily on exchanging da a and se ices be ween di e en
ac o s (Hein e al., 2020; Wang, 2021). Such ac o s migh
include echnology and pla o m p o ide s, ope a o s o dig-
i al a i ac s, endo s o echnical de ices, and consume s
(Bonina e al., 2021; B. Tan e al., 2015; F. Tan e al., 2016).
In his pape , we in oduce a amewo k designed o
acili a e he success ul o ma ion o DEs. A e all, DEs do
no jus eme ge. Ins ead, hey a e he esul s o one o a i-
ous key ac o s’ e o s (usually one o mo e companies) ha
eam up o c ea e mo e alue han hey could on hei own
(Jacobides e al., 2018). As p ac ice shows, e o s and suc-
cess o de elop digi al ecosys ems a y signi ican ly. Wi hin
his li e a u e, schola s documen ha one c ucial success
ac o o DEs lies in inding he sui able se o incen i es—
i.e., incen i es and incen i es sys ems— o ensu e ha eco-
sys em pa icipa ion and use en ollmen a e sel -pe pe ua -
ing (Jacobides, 2019; Le ne e al., 2022; Valdez-De-Leon,
2019).
Incen i es a e he mo i a ion o eason o someone o
ake a pa icula ac ion. Incen i e sys ems, howe e , a e
a s uc u ed and coo dina ed se o incen i es ha wo k
oge he o d i e a speci ic beha io o se o beha io s o e
ime (Deci e al., 1999). In he con ex o DEs, incen i e sys-
ems encompass a ious s imuli, mechanisms, and ewa ds
designed o mo i a e a a ge g oup o join and ac i ely use
Responsible Edi o : Ul ike E. Lechne .
* C is ina Mihale-Wilson
[email p o ec ed] .de
K. Vale ie Ca l
[email p o ec ed]
1 In o ma ion Sys ems andIn o ma ion Managemen ,
Goe he Uni e si y F ank u , Theodo -W.-Ado no-Pla z 4,
60323F ank u AmMain, Ge many
Elec onic Ma ke s (2024) 34:1616 Page 2 o 32
and engage in ac i i ies wi hin he ecosys em. Al hough
p io li e a u e emphasizes he impo ance o se ing he
“ igh ” incen i es o ensu ing pa icipa ion and engage-
men wi hin he ecosys em (e.g., Adne , 2017; L. Chen e al.,
2022; Valdez-De-Leon, 2019), i emains silen on how o
iden i y wha eally incen i izes a ious ac o g oups and
how o o ches a e po en ially con lic ing o complemen a y
incen i es in o a se o s imuli able o maximally scale DE
pa icipa ion (Ojala & Lyy inen, 2022; Pa ke e al., 2017;
Pellizzoni e al., 2019). Su p isingly, al hough bo h ac i i-
ies a e non- i ial and c i ical o achie ing e ec i e pa -
icipa ion and engagemen wi hin digi al ecosys ems, hey
emain ch onically unde - esea ched. Ou wo k builds on
p io ela ed li e a u e (e.g., L. Chen e al., 2022; K e schme
e al., 2022; Ojala & Lyy inen, 2022) and in oduces a ame-
wo k demons a ing he p ocess o iden i ying and in eg a -
ing incen i es in o a cohesi e sys em designed o a ac bo h
o ganiza ions and consume s o an eme gen DE.
Consequen ly, ou wo k makes wo aluable con ibu-
ions o he schola ly li e a u e on he opic. Fi s ly, ou wo k
ho oughly compiles goals and needs c ucial o iden i ying
ma ching incen i es o encou age a ge ed g oups o join a
DE. This compila ion se es as a ounda ion o disce ning
DE incen i es. Cu en li e a u e ends o emphasize a i-
ous incen i es like inancial ewa ds, ecogni ion, s a us, and
access o esou ces (L. Chen e al., 2022; Jacobides e al.,
2018), wi hou consis en ly highligh ing he impo ance o
aligning hese incen i es o goals o op imal mo i a ion.
While p io li e a u e o e s some examples o s imuli, he e
is oom in he cu en esea ch landscape o a mo e s uc-
u ed and comp ehensi e compila ion o needs and goals
ha can enhance he e ec i eness o incen i es on hei
ecipien s.
Ou wo k o e s insigh s in o o ches a ing incen i es
o a ious ac o g oups, ensu ing a cohesi e incen i e sys-
em. While ce ain incen i es migh esona e wi h speci ic
g oups, in eg a ing hem in o a la ge DE amewo k can
some imes dilu e hei e icacy. By s a egically coo dina -
ing hese s imuli and conside ing hei po en ial in e ac ions,
we aim o op imize he desi ed DE pa icipa ion ou comes,
ocusing on he collec i e impac o combined s imuli on
hei a ge audience. To da e, mos s udies ea incen i es
as isola ed en i ies, o e looking po en ial con lic s o syn-
e gies be ween hem. In ou wo k, we accoun o he ac
ha s imuli migh in luence each o he ’s e ec s (i.e., can be
complemen a y, con lic ing, o un ela ed) and hus lead o
less op imal ou comes in e ms o pa icipa ion.
In he subsequen sec ions o his a icle, we in oduce an
in eg a ed amewo k designed o help o ches a e incen i es
o enhancing pa icipa ion in DEs. We begin wi h a discus-
sion on he heo e ical unde pinnings behind ou p oposed
amewo k, ollowed by an o e iew o ou me hodology
and he key elemen s o he amewo k. A e p esen ing he
main concep s and elemen s o he amewo k, we illus a e
i s applica ion in he con ex o an eme gen DE in he Sma
Li ing domain. Finally, we conclude wi h a discussion o he
ad an ages and limi a ions o he p oposed amewo k, as
well as po en ial pa hs o u u e esea ch.
Theo e ical backg ound
This wo k ela es o a ious li e a u e s eams bu pa icu-
la ly o digi al ecosys ems, incen i e sys em design, o gani-
za ional s a egic managemen , and consume echnology
adop ion. In his sec ion, we discuss heo ies and p io wo k
om he ele an indi idual s eams o li e a u e. We s a by
elucida ing on he digi al ecosys ems and ecosys em design.
Digi al ecosys ems andecosys em design
The in o ma ion sys ems (IS) and o ganiza ion s udies (OS)
disciplines p esen a ious de ini ions and ypes o “digi al
ecosys ems” (Bonina e al., 2021; Hein e al., 2020; Isckia
e al., 2018; Nambisan e al., 2019; Wang, 2021). Digi al
inno a ion ecosys ems (Wang, 2021), In e ne o hings
(IoT) ecosys ems (Leminen e al., 2012), and pla o m eco-
sys ems (Pa ke e al., 2017; Sch eieck e al., 2016) a e only
a ew exempla y ypes o ecosys ems men ioned by p io
esea ch. These ecosys ems, while simila in ha ecosys-
ems, ep esen a communi y collabo a ing owa d a sha ed
objec i e (Hein e al., 2020) and exhibi s uc u al and
ope a ional di e ences. Inno a ion ecosys ems, o ins ance,
e e o a communi y ha os e s and acili a es new and
dis up i e echnologies (Wang, 2021). In compa ison, he
In e ne o hings (IoT) ecosys ems e ol e a ound sma
senso s and de ices ha sha e da a o pe o m a wide ange
o (au oma ed) asks (Mihale-Wilson e al.,2019). Ano he
p ominen ype o ecosys em men ioned in he li e a u e—
pla o m ecosys ems— e e s o a communi y o pa icipan s
who o m a ound a pla o m (Pa ke e al., 2017; Sch eieck
e al., 2016). In con as o hese ecosys em examples, in
his wo k, we unde s and DEs in mo e b oad e ms—i.e.,
as dynamic mul i-agen en i onmen s whe e agnos ic bu
in e connec ed species (i.e., echnology, digi al se ices,
p oduc s and pla o ms, o ganiza ions, indi idual consum-
e s) wo k loosely oge he o achie e indi idual and sha ed
goals (Ba ykin e al., 2020; Jacobides e al., 2018; Valdez-
De-Leon, 2019). This dis inc ion be ween he a ious ypes
o ecosys ems is pa icula ly impo an since i e eals di -
e ences in scope, eme gence, and he se o po en ially sui -
able incen i es (Roche & Ti ole, 2003). Fo a be e unde -
s anding, we elabo a e on he s uc u al di e ences be ween
pla o m ecosys ems and DEs.
Elec onic Ma ke s (2024) 34:16 Page 3 o 32 16
In he con ex o pla o m ecosys ems, he co ne s one o
he ecosys em is he pla o m i sel o a ew in e connec ed
pla o ms. Howe e , he pla o m(s) is (a e) a c ucial piece
o he alue c ea ion p ocess, and he communi y builds
a ound he pla o m owne (s) (Hein e al., 2020). This( hese)
pla o m(s) acili a e in e ac ions be ween a ious pa ici-
pan s, o en b idging p o ide s and consume s. The pla o m
owne has he powe o se he ules o go e nance o all
in e ac ions be ween ac o s and bene i s om he ansac-
ions linked o hei pla o m (Hein e al., 2020). The pla -
o m owne d i es he pla o m ecosys em’s incep ion and
keeps a ela i ely high deg ee o con ol as he pla o m
ecosys em e ol es and ma u es. In ac , he pla o m owne
plays a cen al ole in shaping he e olu ion o he pla o m
ecosys em by cu a ing he p oduc and se ice asso men
as well as he pa icipa ing p o ide s (Gawe & Cusumano,
2014).
By con as , in he con ex o a b oade DE concep , he
ounda ional elemen s o he ecosys em encompass mul iple
species (e.g., digi al ools, pla o ms, echnologies, se ices,
o ganiza ions, and consume s) ha coexis and bene i om
one ano he (Jacobides e al., 2018). The communi y builds
modula ly a ound deli e ing no el alue o c ea ing new
oppo uni ies ha can be pla o m- o echnology-agnos ic.
Modula i y e e s o he ac ha once he ecosys em has
o med, no single dominan o go e ning en i y egula es
collabo a ions and ies be ween ac o s (Jacobides e al.,
2018). Ins ead, wi hin DEs, pa icipan s ope a e indepen-
den ly and in e ac wi h each o he based on hei own goals
and objec i es. Al hough collabo a ion be ween ac o s in
DEs is mo e loose, dynamic, and uncon ollable han in
pla o m ecosys ems, he o ma ion o hese collabo a ions
and by ex ension he o ma ion o a DE can be pu pose ully
ini ia ed (Ba ykin e al., 2020).
In his wo k, we e e o he s a egic es ablishmen o he
necessa y co ne s ones o o m an ecosys em as DE design.
The DE designe s a e he companies s i ing o he o -
ma ion o he DE. Hence, he o ma ion o an ecosys em
s a s wi h he DE designe s’ ision and ambi ion o push
o es ablishing no only a echnical in as uc u e on which
he DE can o m bu also sui able ules o go e ning he
in e ac ions be ween he ac o s in he DE (Floe gen e al.,
2022; Hein e al., 2020). The echnical in as uc u e and
sui able go e nance a e equally impo an o DE’s success
(L. Chen e al., 2022; Teece, 2017). Because DEs ely hea -
ily on au onomous agen s ha con ibu e o he ecosys ems’
alue p oposi ions, i is c ucial o implemen go e nance
mechanisms ha enable and coo dina e he in e ac ions
be ween ac o s (e.g., he low o esou ces) wi hou losing
he ad an ages o decen alized decisions (L. Chen e al.,
2022; Teece, 2017). F om an o ganiza ional pe spec i e,
go e nance mechanisms can be classi ied in o incen i e
and con ol mechanisms (L. Chen e al., 2022). Con ol
mechanisms ely on coe cion o ensu e ha he ac o s in
DEs beha e in ways ha align wi h he goals o he DE (e.g.,
moni o ing, sanc ions, and penal ies o non-compliance). In
con as , incen i es ely on mo i a ion and e e o s imuli
o bene i s o e ed o ac o g oups o encou age hem o pa -
icipa e in and con ibu e o he ecosys em olun a ily (L.
Chen e al., 2022).
Incen i es and hei ecipien s
By de ini ion, an incen i e e e s o he s imuli o bene i
ha mo i a es indi iduals o en i ies o ake speci ic ac ions
o beha e in a ce ain way. Fo incen i es o e ec i ely
in luence hei a ge s, hey mus esona e wi h he a ge ’s
mo i a ions and sel -in e es (Adne , 2017; Webe , 2006).
Such s imuli spa k ac ion by ca e ing o a pa icula need
o objec i e o he a ge ed g oup, whe he a consume o
a company. I hese g oups disce n ha he incen i e aligns
wi h hei objec i es—essen ially, ha i esona es wi h hei
co e goals— hey will espond posi i ely (Webe , 2006). On
he lip side, a misaligned incen i e will no p oduce he
desi ed ou come. This unde sco es he idea ha incen i es
a e designed o sway en i ies wi h agency and de ined aspi a-
ions. Pu simply, he bene icia ies o incen i es mus ha e
he capaci y o in en , ambi ion, and awa eness o iden i y
and pu sue speci ic goals.
In e ms o agency, we no e ha en i ies like o ganiza-
ions, consume s, and egula o y bodies possess agency in
a digi al ecosys em, making choices based on hei objec-
i es. In con as , species o a mo e echnological na u e
(e.g., echnology in as uc u e, digi al se ices, pla o ms)
lack agency, meaning hey ope a e wi hou conscious and
in en ional decision-making capaci y. Acknowledging his
dis inc ion, we deduce ha only hose wi h agency wi hin
he digi al ecosys em (i.e., o ganiza ions, consume s, and
egula o y bodies) can indeed be in luenced by incen i es.
While incen i es mus be s a egically aligned wi h hese
agen s’ goals and beha io s, hey mus be ailo ed o he dis-
inc na u e o he ecosys em in ques ion. As we will b ie ly
discuss in he ollowing, s uc u al di e ences be ween a i-
ous ypes o ecosys ems (e.g., pla o m ecosys ems e sus
digi al ecosys ems in he b oade sense) equi e b oadly di -
e en incen i es.
In essence, pla o m ecosys ems p omo e a deg ee o
cen aliza ion (because hey e ol e a ound one (o a ew)
p ima y pla o m(s)) (Gawe & Cusumano, 2014), whe eas
digi al ecosys ems emphasize decen aliza ion, modula -
i y, and b oad in e connec i i y (Jacobides e al., 2018).
Consequen ly, he incen i es o pa icipa ion in hese wo
en i onmen s will be ailo ed o hese unique ecosys em
cha ac e is ics and will di e in scale and ocus, na u e
o engagemen , o po en ial bene i s. In e ms o scale
and ocus, pla o m ecosys em incen i es a e designed o
Elec onic Ma ke s (2024) 34:1616 Page 4 o 32
encou age he de elopmen o p oduc s and se ices o he
ocal pla o m(s) (e.g., h ough pla o m-speci ic de elope
ools and sha ing models) (Gawe & Cusumano, 2014).
In con as , digi al ecosys em incen i es aim o g ow he
en i e ecosys em (e.g., by educa ing de elope s abou mul-
iple ools and echnologies in he ecosys em). Rega ding
he na u e o engagemen , in pla o m ecosys ems, incen-
i es p ima ily ocus on acili a ing ansac ions and di ec
in e ac ions wi h he pla o m (e.g., by p o iding selle s
wi h analy ics ools o discoun ed ansac ion ees) (Rie -
eld e al., 2019). On he con a y, in digi al ecosys ems,
incen i es ocus mo e on collabo a ion (Cama inha-Ma os
& Ab eu, 2007), knowledge sha ing (C esswell e al., 2021),
and de eloping complemen a y p oduc s and se ices ha
a e agnos ic o one echnology o pla o m (B iscoe e al.,
2011). Acco dingly, in digi al ecosys ems, he incen i es
seek o o m and es ablish communi ies (Immonen e al.,
2014), p omo e in e ope abili y among di e en pla o ms,
o es ablish s anda ds ha help di e en ecosys em compo-
nen s wo k oge he seamlessly (Hodapp & Hanel , 2022).
Rega ding po en ial bene i s and mone iza ion s a egies,
incen i es in pla o m ecosys ems a e ansac ional and
will include educed ees, access o p emium ea u es, o
speci ic e enue-sha ing ag eemen s. Pla o m ecosys ems
also o en ha e a buil -in mone iza ion model (e.g., commis-
sion-based, subsc ip ion ees) wi h he pla o m ecosys em
p o ide being a cen al bene icia y o he pla o ms’ ans-
ac ions (Roche & Ti ole, 2003). In con as , since digi al
ecosys ems a e mo e modula , wi h no en i y exe ing oo
much con ol (Jacobides e al., 2018), DEs exhibi mul iple
mone iza ion ac ics ha a e likely o a y ac oss di e en
ools and se ices. Addi ionally, incen i es in he digi al
ecosys em a e mo e gea ed owa d long- e m objec i es
and encompass s a egic ini ia i es, pa ne ships, o in es -
men s ha enhance he ecosys em’s o e all in as uc u e,
knowledge base, o collabo a i e po en ial. Recognizing
hese dis inc ions is c ucial when de e mining he op imal
incen i es o encou age pa icipa ion in ei he pla o m eco-
sys ems o DEs. Fu he mo e, i is essen ial o app ecia e
ha indi idual incen i es a e componen s o b oade incen-
i e sys ems which combine and econcile a ious incen i es
in o a s uc u e ha aligns he in e es s o a ious DE g oups
(Da is, 1993; K e schme e al., 2022).
Incen i e sys ems
The design o incen i e sys ems in ol es conside ing ac o s
such as he a ge audience, desi ed ou comes, and he o e -
all objec i es o he sys em (Kopalle e al., 2020; K e schme
e al., 2022; Y. Sun e al., 2022; Valdez-De-Leon, 2019).
This is necessa y o mainly wo easons: Fi s ly, incen i es
a e no isola ed en i ies ha ne e in luence each o he .
Secondly, incen i e sys ems a e no s a ic, one-size- i s-all
solu ions.
Incen i es a e no isola ed en i ies
Depending on he a ge audience, incen i es migh be inde-
penden o each o he , complemen a y, o e en con adic-
o y (Adne , 2017; K e schme e al., 2022). Complemen a y
incen i es a e hose ha align and ein o ce each o he , while
con adic o y incen i es ep esen con lic ing o opposing
ones ha can lead o con lic ing beha io s be ween ac o
g oups. In he digi al economy, a classic example o con lic -
ing incen i es can be obse ed be ween ech companies and
consume s a ound da a p i acy. On he one hand, consume s
desi e and o en demand p oduc s and se ices ha p io i ize
hei p i acy, wishing o sa egua d hei pe sonal in o ma-
ion and limi da a collec ion (Ca l e al., 2023;Mihale-Wil-
son e al.,2021). This incen i e is especially s ong due o
inc easing awa eness abou da a b eaches and misuse. On
he o he hand, many ech companies a e incen i ized o
collec as much use da a as possible. This da a no only
in o ms hei p oduc de elopmen and enhances use expe-
ience bu also becomes a signi ican e enue sou ce when
mone ized, ei he h ough a ge ed ad e ising o by selling
o hi d pa ies (Mihale-Wilson e al.,2021). Such con lic -
ing incen i es can pose challenges in achie ing a ha mo-
nious digi al ecosys em, as hey push he en i ies in ol ed
in di e en di ec ions—consume s owa d heigh ened da a
p o ec ion and businesses owa d expansi e da a usage.
Viewing an incen i e sys em as he agg ega e o all he
incen i es in en ionally pu o h o in luence he beha io
o a ious g oups and p omp a speci ic desi ed ac ion, i
is essen ial o dis inguish be ween con lic ing goals and
con lic ing incen i es. While di e gen goals be ween ac o
g oups can os e inno a ion and yield new alue p oposi-
ions, con lic ing incen i es— hose ha induce beha io s
ha neu alize each o he o collec i ely lead o undesi ed
ou comes o he ecosys em’s o e all pa icipa ion—should
be app oached wi h cau ion.
Incen i e sys ems a e no s a ic
The dynamic na u e o DEs (Adne , 2017) implies ha
incen i e sys ems a e no s a ic, one-size- i s-all solu-
ions. Ra he , incen i e sys ems mus be lexible and able
o e ol e wi h he DE o i he ecosys ems’ cu en li e
cycle phase (Panico & Cennamo, 2022). Unde he p em-
ise ha DEs do no jus “appea ” bu de elop and e ol e
o e ime, li e a u e on DEs dis inguishes ou li e cycle
phases: incep ion, g ow h, ma u i y, and enewal (Isckia
e al., 2018; Teece, 2018). Each li e cycle phase is linked

Elec onic Ma ke s (2024) 34:16 Page 5 o 32 16
o sligh ly di e en challenges, he incen i e sys em needs
o be aligned wi h (Panico & Cennamo, 2022). Du ing
incep ion, o ins ance, pa icipan s mus imagine and
unde s and he new oppo uni ies ha he DE a o ds and
iew he new ecosys em as appealing (Isckia e al., 2018).
Hence, a his ini ial s age, DE designe s migh wan o
ocus on a ac ing indus y leade s and ea ly adop e s
(Khanagha e al., 2022) who can hen se e as ad oca es,
demons a ing he DE’s inno a i eness and po en ial o
o he o ganiza ions. Du ing g ow h, a ac ing ou side s
and b oadening he use base a e i al o achie ing a c i i-
cal mass o ac i e pa icipan s (Isckia e al., 2018; Teece,
2017). Hence, du ing he g ow h s age, DE designe s’
ocus migh be on he exponen ial g ow h o he DE’s pa -
icipan base (Sebas ian e al., 2020). Once he ecosys em
possesses he c i ical mass o unlock i s ull po en ial, he
DE eaches ma u i y, and pa icipan s a e now s a ing
o explo e business oppo uni ies wi hin o he ecosys-
ems (Isckia e al., 2018; Teece, 2017). I DE designe s
do no coun e he ansi ion o ecosys em pa ne s and
alue o compe ing ecosys ems, he DE will sh ink and
e en ually disappea . Hence, du ing his pos -ma u i y
phase, DE designe s migh seek ways o eju ena e he
ecosys em (Isckia e al., 2018; Teece, 2017). The e o e,
a his junc u e, DE designe s migh seek o a ac new
and highly inno a i e ac o s ha can help he ecosys em
pene a e o he indus ies o ind new and inno a i e ways
o alue c ea ion. Gi en he a ying s a egic emphases
ha accompany each s age o an ecosys em’s li e cycle,
i becomes impe a i e o e-align incen i es wi hin he
sys em when deemed necessa y (X. Sun & Zhang, 2021).
To sum up, designing incen i e sys ems o DE pa ici-
pa ion equi es designe s o comp ehensi ely unde s and
he expec a ions, goals, and needs o he a ge audience
(ac o g oups) when joining and pa icipa ing in he DE.
Fu he mo e, designe s mus ha e access o sui able s a e-
gies and mechanisms ha allow hem o o ches a e incen-
i es in o an incen i e sys em—i.e., one able o a ac
companies and consume s alike o join and pa icipa e in
he ecosys em. I is impo an o no e ha companies join
and pa icipa e in DEs p ima ily by playing an ac i e ole
on he supply side o he ecosys em (e.g., by co-de el-
oping p oduc s and se ices). In con as , consume s a e
ypically on he demand side o he ecosys em (e.g., by
adop ing and using he p oduc s and se ices p o ided in
he ecosys em) (Hein e al., 2020). Thus, we can d aw on
he li e a u e s eam on o ganiza ional s a egic manage-
men o s uc u e and explo e companies’ expec a ions and
goals when deciding o join DE. To unde s and consume s’
needs and goals when adop ing and using he p oduc s
and se ices p o ided in he ecosys em, we can d aw on
he echnology adop ion li e a u e. Below, we discuss bo h
s eams o li e a u e in mo e de ail.
O ganiza ional s a egic managemen li e a u e
In ou case, he o ganiza ional s a egic managemen li e a-
u e p o ides a amewo k o analyze how companies plan
and make s a egic decisions, such as he decision o join a
DE. Companies o en join DEs o achie e speci ic business
goals, such as expanding ma ke each o le e aging new
echnologies o inno a ion. The o ganiza ional s a egic
managemen li e a u e p o ides he necessa y insigh s and
ools o iden i y hese goals and how hey align wi h he
b oade s a egic objec i es o he company. As p e iously
no ed, he decision o pa icipa e in DEs, akin o o he s a-
egic company choices, depends on he an icipa ed alue
om he ecosys em. Howe e , jus as quan i ying he alue
and impac o IT in o ganiza ions is complex, so is assess-
ing he p ecise bene i s o DE pa icipa ion. Del ing deepe
in o his a gumen , exis ing li e a u e indica es ha echnol-
ogy and IS in es men s can yield angible and in angible
e u ns, which migh only mani es in he mid- o long- e m.
Di ec ly co ela ing hese in es men s wi h o ganiza ional
p o i s emains di icul , bo h in e ospec i e and, e en mo e
so, in p edic i e e alua ions (Rosa i e al., 2017; Tallon &
K aeme , 2007; Tallon e al., 2020). Commi ing o a digi al
ecosys em can pa allel IT in es men decisions, o ins ance,
in e ms o isks, long- e m commi men , and po en ial need
o alignmen wi h he o ganiza ion’s b oade s a egic goals.
Also, simila o IT in es men decisions, he choice o en e a
DE po en ially yields angible and in angible esul s, whose
ealiza ion may a y o e ime, making hei up on quan-
i ica ion no ably challenging.
Mo i a ed by he challenge o cap u ing less angible
bene i s such as imp o ed cus ome se ice (Volbe da e al.,
2021) o new collabo a ions and complemen a i ies ha
would no o m ou side he DE (Jacobides, 2019), schol-
a s (e.g., Ma insons e al., 1999; Milis & Me cken, 2004;
Shen e al., 2022) sugges using he well-es ablished bal-
anced sco eca d (BSC). O iginally de eloped by Kaplan and
No on (1992), he BSC aims o complemen he inancial
pe spec i e on business pe o mance wi h he non- inancial
pe spec i e. Applied o echnology p ojec s and decisions,
he BSC is also use ul o de eloping me ics e lec ing he
angible and in angible bene i s o echnology implemen a-
ions (Ma insons e al., 1999; Shen e al., 2022). Because
“ he me ics used in a balanced sco eca d amewo k a e
aligned o he company’s s a egy and business aims”(Milis
& Me cken, 2004, p. 94), he BSC model allows manage s
o adop a comp ehensi e iew on echnology in es men s
while also se ing as a map o na iga ing he s a egic goals
o he company (Milis & Me cken, 2004). In pa icula , he
BSC allows o ganiza ions o measu e hei in angible asse s,
such as cus ome ela ionships, inno a i e p oduc s, se -
ices, echnology, knowledge, and he o ganiza ional s uc-
u es ha p o ide a company wi h a compe i i e ad an age
Elec onic Ma ke s (2024) 34:1616 Page 6 o 32
(R. S. Kaplan & No on, 1992, 2001). Acco dingly, he BSC
has p ac ical ele ance o s a egy and ocuses on inancial
and non- inancial aspec s, sho - e m and long- e m s a egy,
and in e nal and ex e nal business measu es (Wu, 2012).
Speci ically, he BSC akes on ou pe spec i es: a inan-
cial pe spec i e, a cus ome (o ma ke ) pe spec i e, an
in e nal p ocess pe spec i e, and a lea ning and g ow h
pe spec i e. Following Kaplan and No on (1992, 2001),
om a inancial pe spec i e, companies ocus on hei eco-
nomic and inancial heal h (e.g., p o i abili y and alue c ea-
ion o he o ganiza ion) (Fische & Himme, 2017; Klies ik
e al. 2020). F om a cus ome pe spec i e, companies seek
o unde s and hei ma ke pe o mance ega ding hei cus-
ome ela ionships (e.g., cus ome sa is ac ion, e en ion,
chu n) and ma ke sha e (Kamalaldin e al., 2020; K izano a
e al., 2019). F om an in e nal p ocess pe spec i e, compa-
nies seek o unde s and he e iciency and e ec i eness o
hei ope a ions and p ocesses (H. Chen e al., 2021). Ul i-
ma ely, he lea ning and g ow h pe spec i e encompasses
ac o s c ucial o os e ing con inuous lea ning, imp o e-
men , and adap abili y wi hin he company—e.g., employee
aining and de elopmen , knowledge managemen , inno a-
i eness, and o ganiza ional cul u e (Kimiloglu e al., 2017).
We use he BSC model as a s uc u ed bluep in o
explo ing companies’ goals and expec a ions when decid-
ing o join DE. To now u n o he consume s’ side and del e
in o he goals o his g oup when deciding o join a DE (spe-
ci ically, o use he o e ings o he DE a he han al e na-
i e op ions), we d aw on he echnology adop ion li e a u e.
Consul ing he echnology adop ion li e a u e, pa icula ly
i s heo ies, is i ing, as hese heo ies ha e adi ionally
examined he ac o s in luencing indi iduals’ decisions o
accep o ejec new echnologies and p oduc s.
Technology adop ion li e a u e
Resea ch on echnology adop ion is one o he mos ma u e
s eams in IS li e a u e (Ho e al., 2020). I en ails heo ies
conce ning indi iduals’ p e- and pos -adop ion beha io s
(Mish a e al., 2023). While p e-adop ion heo ies ocus on
explaining indi iduals’ in en ions o adop , pos -adop ion
beha io s ocus on wha d i es usage con inuance. Gi en
ha we seek o explo e and s uc u e bo h—consume s’
needs and goals when ini ially joining he DE bu also
hei needs and goals in ela ion o con inuous pa icipa-
ion in DE (i.e., con inuous use o he ecosys em p oduc s
and se ices)—ou wo k ela es o bo h s eams o li e a-
u e wi hin his co pus o esea ch. Wi hin he echnology
p e-adop ion li e a u e, we mainly e e o wo o he well-
es ablished adop ion models: Da is’ (1989) echnology
adop ion model (TAM) and Venka esh e al.’s (2003) uni-
ied heo y o accep ance and use o echnology (UTAUT).
Acco ding o TAM, echnology accep ance is mainly d i en
by indi iduals’ a i udes owa d he echnology, which in
u n is shaped by he indi iduals’ pe cep ion o he ech-
nology’s use ulness (PU) and ease o use (PEoU) (Da is,
1989; Venka esh e al., 2003). PU desc ibes o which deg ee
indi iduals hink a pa icula echnology can ul ill p ede-
ined goals. PEoU e lec s indi iduals’ pe cep ion o how
e o less a echnology’s usage migh be (Da is, 1989; Ven-
ka esh e al., 2003). TAM has se ed as a ounda ion o
a ious o he esea ch models o echnology adop ion. The
UTAUT, o ins ance, posi s ha echnology accep ance and
use a e de e mined by ou cons uc s: pe o mance expec-
ancy, e o expec ancy, social in luence, and acili a ing
condi ions (Venka esh e al., 2003). While pe o mance
expec ancy e e s o indi iduals’ belie s ha using he a -
ge echnology will ad ance hei goals (i.e., i is equi a-
len o PU), e o expec ancy ep esen s he same as PEoU.
Howe e , social in luences (also e e ed o as “subjec i e
no ms” (B own e al., 2010)) ela e o indi iduals’ belie s
ha adop ing echnology will enhance hei s a us wi hin a
ele an pee g oup (Ma uping e al., 2017). Ex an li e a-
u e co obo a es he link be ween impo an ac o s and indi-
iduals’ echnology adop ion in en ion (B own e al., 2010).
This link is compelling o no ices (i.e., indi iduals wi h no
p io expe ience wi h he a ge echnology) and wi hin he
wo k- ela ed con ex when impo an ex e nal o he s (e.g.,
supe iso s, colleagues) can exe some so o p essu e on
he po en ial adop ion candida e (Ma uping e al., 2017).
Finally, acili a ing condi ions e e o objec i e ac o s ha
make echnology use possible. Such ac o s include echnical
and o ganiza ional suppo (Venka esh e al., 2003).
Wi hin he echnology pos -adop ion li e a u e, ou wo k
ela es o Bha ache jee’s (2001) expec a ion-con i ma ion
model (ECM) and Liao e al.’s echnology con inuance he-
o y (TCT). In bo h models, indi iduals’ con inued echnol-
ogy use is s ongly d i en by consume s’ sa is ac ion wi h
he echnology, which again depends on ac o s such as PU
and PEoU (Liao e al., 2009). Wi h PU and PEoU in luenc-
ing bo h he echnology p e- and pos -adop ion, while o he
ac o s migh in luence only consume s’ sa is ac ion wi h
he echnology (pos -adop ion), we sugges dis inguishing
be ween “ i s - ie ” d i e s o adop ion and use (e.g., PU,
PEoU) and addi ional “second- ie ” d i e s o con inuous
use (i.e., any ac o s ha can inc ease sa is ac ion in he pos -
adop ion phase).
We combine he p e iously discussed s eams o li e a u e
o de elop a amewo k o designing incen i e sys ems o
DE pa icipa ion. Based on he li e a u e on digi al ecosys-
ems and ecosys em design, please emembe ha DEs a e
dynamic mul i-agen en i onmen s whe e di e se bu in e -
connec ed species— anging om echnology, digi al se -
ices, p oduc s, and pla o ms o o ganiza ions and indi id-
ual consume s—ope a e in a loosely coupled manne . Thei
in e ac ion dynamics aim o ealize unique and collec i e
Elec onic Ma ke s (2024) 34:16 Page 7 o 32 16
goals, e lec ing he in ica e and o en symbio ic ela ion-
ships wi hin hese digi al ealms. The li e a u e on incen-
i es p o ides he ounda ional a ionale o ou amewo k.
Incen i es a e s imuli c a ed o mo i a e speci ic ac ions o
beha io s. These incen i es wo k only wi h en i ies ha pos-
sess he necessa y agency and conscious decision-making
abili y o be swayed owa d a pa icula beha io . In he con-
ex o DEs, no all en i ies ha e he necessa y agency; ou
s udy ecognizes ha besides egula o y o go e nmen al
bodies, only he consume and o ganiza ional species pos-
sess agency. Building on his, we del e in o incen i e sys-
ems li e a u e, emphasizing ha incen i es do no ope a e
in isola ion. They a e componen s o in ica e sys ems whe e
indi idual incen i es in e ac and po en ially in luence each
o he . An e ec i e incen i e sys em, he e o e, necessi a es
a ca e ul o ches a ion o hese incen i es, ensu ing ha
hei collec i e in luence yields he mos desi able ou comes
in e ms o ecosys em pa icipa ion. Ye i is impo an o
acknowledge ha o ganiza ions and consume s a e wo di -
e en species ha a e d i en by a di e en se o goals. F om
he ealm o o ganiza ional s a egic managemen , we adop
insigh s om he BSC model. Gi en i s s uc u ed app oach
o explo ing and a icula ing co po a e objec i es and aspi-
a ions, he BSC model se es as ou guiding bluep in o
explo ing companies’ goals and expec a ions when decid-
ing o join DE. Las ly, ou amewo k is also in o med by
he echnology adop ion li e a u e, which is pi o al because
echnology accep ance heo ies shed ligh on he nuances
ha d i e indi iduals’ decisions a ound emb acing he o e -
ings o he DE o e al e na i e o e ings.
By blending he insigh s om all hese esea ch dimen-
sions, ou amewo k aims o o e a comp ehensi e,
nuanced, and ac ionable guide o de ising e ec i e incen-
i e sys ems ailo ed o he DE landscape. Ha ing laid ou
his ounda ion, le us ansi ion in o he s uc u ed p ocess
h ough which we de eloped he amewo k.
Me hodology o de eloping he amewo k
Fo he de elopmen o he amewo k, we ollow a i-
ous schola s’ insigh s on heo izing and de eloping (in e-
g a ed) IS amewo ks (e.g., Bai d & Ma uping, 2021;
Bu on-Jones & Volko , 2017; Hassan e al., 2022;
Maxwell, 2012; Miles & Hube man, 1994). Speci ically,
we design ou amewo k in a mul i-s ep app oach (see
Fig.1). Fi s , we conduc ed comp ehensi e li e a u e
e iews (s ep 1, Fig.1): Ini ially, we pe o med a sys-
ema ic li e a u e e iew app oach employing a keywo d-
d i en sea ch (consume s: “digi al AND (p e e enc* OR
nee*)”; companies: “compan* AND “s a egic goals””).
Fo consume s, we ocused on he bes - anked publica-
ions in IS esea ch (VHB A + , A, and B), and o compa-
nies, we conduc ed a b oade sea ch, cap u ing he online
lib a y EBSCO. The sea ch led o 1032 (consume s) and
1336 (companies) esul s. In he i s s ep o assessing he
i le and abs ac , we e ained 112 (consume s) and 386
(companies) publica ions. Facing high exclusion a es in
bo h s eps o he pape analysis due o he equi ed ans-
e abili y o esul s o he con ex o DEs, we ecei ed 10
ele an publica ions o consume s and 9 o companies.
Thus, we pe o med mo e explo a i e u he sea ches
employing mul iple backwa d and o wa d sea ch s eps
as well as mo e explo a i e sea ch on ecei ed goals and
needs and egula ly upda ed he sea ch, leading o a o al
o 34 publica ions ega ding consume s’ needs and 32
co e ing companies’ goals. To sum up, he aim o his
li e a u e e iew was o cap u e he cu en s a e o ela ed
wo k on (i) companies’ expec a ions and goals conce ning
DE pa icipa ion, (ii) consume s’ expec a ions and needs
conce ning DE pa icipa ion, and (iii) po en ial se o s a -
egies and mechanisms o o ches a e indi idual incen i es
in o incen i e sys ems. The li e a u e e iews cap u e he
cu en s a e o ela ed wo k and allow us, in a second
s ep, o agg ega e knowledge om p io esea ch e o s
in o one comp ehensi e amewo k (Bai d & Ma uping,
2021; Okoli & Schab am, 2010). We ollow he es ablished
p oposi ions by Ki chenham e al. (2009), which ensu e
ha syn hesizing he ex ac ed esea ch indings in o ms
and guides p ac i ione s in a s uc u ed and comp ehensi e
manne (Ki chenham e al., 2009; Snyde , 2019). Besides,
he li e a u e e iews also se e as a basis o u he agg e-
ga e and clus e p e ious esea ch based on p ede ined c i-
e ia, in o ming he concep ualiza ion o a (new) heo y
cons uc (Pa é e al., 2015; Snyde , 2019).
In a second s ep, he insigh s om p io li e a u e we e
agg ega ed and syn hesized h ough a DE-speci ic lens
(s ep 2, Fig.1), howe e in e ac ing wi h he i s s ep
(li e a u e e iew) o adap he p ocess acco dingly. The
Fig. 1 Me hodological app oach o he amewo k de elopmen
Elec onic Ma ke s (2024) 34:1616 Page 8 o 32
DE-speci ic lens enables us o accoun o idiosync a ic
cha ac e is ics o DEs, such as he collabo a i e alue c e-
a ion in a coope i i e en i onmen 1 (Le ne e al., 2022),
pa icula ly o DEs. Fo ins ance, in DEs, alue c ea ion
occu s h ough collabo a ion (i.e., ia common business
p ac ices, in e ope abili y be ween p oduc s and se ices,
sha ed da a spaces, and knowledge ans e ). Hence, he
o ganiza ional goals conce ning DE pa icipa ion migh
no include only goals such as imp o ing he company
cos s uc u e (R. S. Kaplan e al. 2004; Wu, 2012) bu also
goals such as c ea ing new alue (i.e., p oduc s and se -
ices) ha o he wise would no be possible o de elop. A
he same ime, o ganiza ional goals ha migh be impo -
an in o he con ex s (e.g., inancial anspa ency (S. Lee
e al., 2021)) migh play no signi ican ole in he con ex
o DE pa icipa ion.
We compiled a p elimina y amewo k based on he
agg ega ed insigh s om p io li e a u e (s ep 3, Fig.1). To
his end, we use he BSC o s uc u e and documen com-
panies’ expec a ions and goals conce ning DE pa icipa-
ion. Analogously, we s uc u e and documen consume s’
expec a ions and goals conce ning DE pa icipa ion by dis-
inguishing be ween i s - ie (mus -ha e expec a ions and
goals o join and con inuously pa icipa e in he DE) and
second- ie ac o s (op ional ac o s ha can inc ease con-
sume s’ sa is ac ion wi h he o e ings o he DE and hus
suppo con inuous pa icipa ion).
The p elimina y e sion o he amewo k was alida ed
in wo wo kshops wi h domain expe s wo king on a join
esea ch p ojec (s ep 4, Fig.1). The esea ch p ojec aims
o design and de elop he necessa y componen s o a DE
in he Sma Li ing domain. The wo kshops we e con-
duc ed wi h six domain expe s wi h di e en backg ounds
and esea ch oci: Th ee pa icipan s ep esen ed he R&D
depa men s o leading global supplie s o sma home,
mobili y, and consume goods echnology. One pa icipan
ep esen ed he associa ion o elec ic and consume goods.
Ano he pa icipan ep esen ed an SME supplying sma
home solu ions. Finally, wo pa icipan s wo k o esea ch
en i ies esea ching digi al (se ices and consump ion) eco-
sys ems. In he i s wo kshop, he expe s discussed and
chose he mos ele an companies’ o ganiza ional goals in
ela ion o DE pa icipa ion. In he second wo kshop, he
discussion e ol ed a ound he mos c i ical consume needs
conce ning DE pa icipa ion. Bo h wo kshops esul ed in
a cu a ed lis o company goals and consume needs mos
ele an conce ning DE pa icipa ion. Finally, we combined
all indings in one amewo k o design DE pa icipa ion
incen i e sys ems.
F amewo k o designing incen i e sys ems
o DEs
Figu e2 isualizes he p oposed design amewo k. I
consis s o h ee building blocks (i.e., iden i y incen i es,
combine incen i es in o a sys em, and incen i e sys em ea-
lignmen ) and h ee key elemen s (i.e., (i) company goals,
(ii) consume needs, and (iii) o ches a ion mechanisms).
Subsequen ly, we discuss each building block indi idually,
as hey indica e how o use ou amewo k.
Fi s building block: Iden i y incen i es
The i s building block o he amewo k sugges s iden i y-
ing he incen i es o each o he a ge ed ac o g oups—
i.e., in ou con ex , companies and consume s—by analyzing
hese ac o s’ expec a ions, goals, and needs when joining
and pa icipa ing in DEs. Only once designe s documen
companies’ and consume s’ needs and expec a ions in ela-
ion o DE pa icipa ion can hey de i e incen i es ha
will be e ec i e o each o he indi idual a ge g oups.
Fo hese ac i i ies, designe s can use a ange o me hods:
Expe in e iews and Delphi s udies, o ins ance, a e sui a-
ble o documen ing companies’ goals and po en ially de i -
ing applicable incen i es o companies. Analogously, expe
in e iews, ocus g oups, o consume su eys a e help ul o
ga he consume s’ needs and de i e sui able incen i es o
his g oup. To suppo hese ac i i ies, ou amewo k o e s
conc e e suppo by p o iding a comp ehensi e se o goals
and needs ha companies and consume s ha e conce ning
hei DE pa icipa ion decisions.
As men ioned in he p e ious sec ion ( he “Me hodology”
sec ion o de eloping he amewo k), hese company and
consume goals we e de i ed om p io li e a u e. We i s
p esen he (i) company goals along he ou pe spec i es
p oposed by he BSC. F om a inancial pe spec i e, com-
panies ocus on economic and inancial s a us. The e a e
a ious ways o inc ease he alue o a company h ough
s a egic ac ions. Common measu es a e, o example, he
de elopmen o a new business ield, he acquisi ion o a
company, o a s a egic ealignmen . Sho - e m p o i s
should be subo dina ed o long- e m successes (Rappapo ,
2006). The eby, in es o s closely moni o e enue, p o i -
abili y, and expec ed cash lows (R. S. Kaplan & No on,
1992). Addi ionally, in es o s also moni o he decisions
abou adop ing new echnological de elopmen s.
In gene al, DE pa icipa ion can di ec ly o indi ec ly
imp o e a ious key inancial pe o mance indica o s. Fo
ins ance, DEs equi e a ce ain deg ee o homogenei y
1 Coope i ion is a business s a egy in which companies wo k
oge he o achie e a common goal while s ill compe ing agains each
o he . This app oach combines he bene i s o coope a ion and com-
pe i ion, allowing companies o sha e esou ces and knowledge while
s i ing o be he bes in hei indus y.
Elec onic Ma ke s (2024) 34:16 Page 15 o 32 16
2006). Ul ima ely, he moni o ing and e- uning mechanism
ensu es ha he incen i es sys em con inues o be e ec i e
o e ime. Since DEs a e dynamic en i onmen s ha e ol e,
incen i e sys ems mus be moni o ed and e- uned whene e
necessa y (Panico & Cennamo, 2022).
Table1 p o ides an o e iew o he discussed o ches a-
ion mechanisms and names exempla y me hods ha can be
used o le e age each espec i e mechanism. Fo ins ance,
o p io i ize incen i es o companies (i.e., iden i y op p i-
o i y incen i es), designe s can conduc in e iews wi h
companies appe aining o he a ge ed companies g oup.
Then, i he op p io i y company and consume incen i es
a e con adic o y, designe s can b oke be ween hese incen-
i es based on he inpu om expe wo kshops and expe
in e iews.
Thi d building block: Incen i e sys em ealignmen
Following he a gumen s p esen ed ea lie , incen i e sys ems
canno be s a ic and should e ol e wi h he changing condi-
ions o each DE li e cycle. As discussed p e iously, depend-
ing on whe he he DE is in i s incep ion, g ow h, ma u i y,
o enewal phase (Isckia e al., 2018), he incen i e sys em
mus add ess he espec i e li e cycle challenges. Du ing he
incep ion phase, o ins ance, DE designe s migh wan o
a ac indus y leade s and ea ly adop e s. A la e s ages,
such as he g ow h phase, DE designe s’ ocus migh be on
he exponen ial g ow h o DE’s pa icipan base. Simila ly,
once he i s - ie consume needs a e sa is ied, incen i e
sys ems should conside he second- ie needs mos impo -
an o he bigges g oup o consume s ha he DE in ends
o appeal o. Acco dingly, i is essen ial o moni o he goals
o he incen i e sys em and, i necessa y, e- une he sys em
o be e ec i e and con inuously a ac he DE ac o s i seeks
o a ac (Panico & Cennamo, 2022). To his end, designe s
can employ he p e iously s a ed o ches a ion mechanisms
o bo h moni o and e- une exis ing incen i e sys ems. We
de ail he p ocess o his “ ealignmen ” wi hin he sys em in
he Use Case sec ion o his s udy, whe e we p o ide a com-
p ehensi e guide on he p ac ical applica ion and expec ed
ou comes o such s a egic adjus men s.
Case s udy: Applying he amewo k oaDE
inSma Li ing
To highligh he p ac ical use ulness o ou p oposed ame-
wo k, we p esen i s applica ion in a eal-wo ld scena io:
an eme ging digi al ecosys em in he Sma Li ing space.
This illus a ion is unde pinned by expe in e iews and a
su ey conduc ed o assess he obus ness and ele ance o
he amewo k. Be o e del ing u he in o he case s udy, i
is pi o al o elabo a e on he concep o Sma Li ing.
Ad ancemen s in undamen al echnologies, such as
cloud compu ing, a i icial in elligence, o he In e ne o
hings, gain e e -inc easing ac ion and abe a new gen-
e a ion o digi al p oduc s and se ices (Hosseinian-Fa
e al., 2018; Mihale-Wilson e al., 2022). Along wi h hese
ad ancemen s, schola s and p ac i ione s expec a signi i-
can ly g owing impo ance o he Sma Li ing domain
in he upcoming yea s (Makkonen e al., 2022; Mu hy &
Madhok, 2021). In essence, he Sma Li ing concep e e s
o wea ing echnology in o ou daily li es o imp o e con-
enience, e iciency, sus ainabili y, and he o e all quali y
o li e (Hosseinian-Fa e al., 2018; Jiménez e al., 2014).
Among o he s, Sma Li ing en isions mo e con enience
and highe quali y o li e by s eamlining and au oma ing
a ious asks o make ou ine ac i i ies mo e e icien (Baue
e al., 2020). Wi h a ious daily ac i i ies being au oma ed,
consume s migh ha e less s ess and mo e ee ime o do
wha e e hey lo e (Mihale-Wilson e al., 2017). Besides
au oma ion o asks, Sma Li ing also en isions ha sma
se ices and sys ems can suppo consume s o lead heal h-
ie (e.g., h ough moni o ing and ecommending die a y
and spo s ac i i ies) and mo e sus ainable li es yles (e.g.,
h ough op imized ene gy consump ion and was e educ-
ion) (Baue e al., 2020; Cimmino e al., 2014; Liu e al.,
2019). Al hough desi able om a wel a e and well-being
poin o iew, he ma e ializa ion o he Sma Li ing p om-
ise equi es a high le el o in e ope abili y and coope a ion
be ween ac o s (Jiménez e al., 2014).
To achie e he coope a ion and in e ope abili y needed
o ma e ialize he Sma Li ing concep , Eu opean go -
e nmen s ha e s a ed a ious ini ia i es (e.g., he Ge man
p og am Sma Li ingNex 4) ha aim o c ea e DEs ha
can me ge he cu en ly agmen ed ma ke and i s espec-
i e ac o s. Because Sma Li ing DEs a e only s a ing o
o m, such ecosys ems a e in hei incep ion phase. Thus,
hei main ocus is o a ac as many ac o s (on he sup-
ply and demand side) as possible. We can use he p oposed
amewo k o iden i y and o ches a e he mos p omising
incen i es o a ac ing and engaging companies and con-
sume s in o a Sma Li ing DE. The i s s ep in applying
he amewo k is iden i ying incen i es o companies and
consume s by analyzing hei expec a ions and goals when
joining a Sma Li ing DE.
Iden i y incen i es o companies andconsume s
We use he se o company goals and consume needs p o-
ided by he amewo k o iden i y incen i es o companies
and consume s. These need o be i s p io i ized acco ding
4 h ps:// www. bmwk. de/ Redak ion/ EN/ P ess emi eilun gen/ 2023/ 01/
20230 103- sma li in gnex - call- o - undi ng- publi shed. h ml

Elec onic Ma ke s (2024) 34:1616 Page 16 o 32
o hei impo ance o he consume s and companies’ a ge
g oups. In ou example, o educe complexi y and show-
case he amewo k’s applica ion, we i s seek o ind he
mos impo an goals o he i s and second mos impo an
dimensions o he BSC and he op 3 consume needs, hus
incen i es. Due o he b oad na u e o he assessed company
goals and consume needs, such a p io i iza ion o goals is
pi o al o applying he amewo k. The ple ho a o goals
and needs will be challenging o sa is y simul aneously, indi-
ca ing he sui abili y o an ini ial ocus on he mos c i ical
needs and goals while possibly being b oadened o e ime.
To ge a eeling on (i) companies’ a ing o he a ious
company goals p oposed by he amewo k, we conduc ed
s uc u ed in e iews wi h 27 companies ela ed o he
housing o home au oma ion indus y. Table2 indica es
he indus y o he in e iewed companies. Fu he mo e,
we no e ha 15 in e iew pa ne s ep esen ed la ge com-
panies, 10 ep esen ed SMEs, 1 ep esen ed a s a -up, and
ano he a public en i y ela ed o he housing indus y.
We cons uc ed he sample o cap u e a wide a ie y o
companies ega ding company size, li e cycle, and own-
e ship s uc u e o cap u e a comp ehensi e assessmen
o companies’ goals independen o company ypes. The
in e iews we e conduc ed online and las ed 40min on
a e age. The in e iew guide comp ised he companies’
goals compiled in Fig.5 (le side). Speci ically, he in e -
iewees we e asked o a e (1) he impo ance o he ou
BSC pe spec i es ( inance, cus ome , in e nal p ocess, and
lea ning and g ow h) and (2) he espec i e goals by hei
impo ance when deciding o pa icipa e in a Sma Li -
ing DE.
The conduc ed in e iews wi h companies e eal ha
when deciding on pa icipa ion in a Sma Li ing DE,
companies a e mos in e es ed in he cus ome pe spec-
i e, ollowed by he lea ning and g ow h pe spec i e.
Fo ins ance, he Senio Manage o S a egic Inno a ion
a a home au oma ion company, esponsible o s a egic
pa ne ships and ecosys ems, s a es, “Yes, I hink I would
i s ank ha we al eady ake he cus ome pe spec i e
in he i s place, because ha should always be he s a -
ing poin , i.e., also he s a ing poin o ac ion. Lea ning
and g ow h is hen pe haps al eady wo ha we also wan
o g ow in he ma ke .” The inancial pe spec i e anks
hi d, e ealing a key insigh abou he Sma Li ing ma -
ke : Al hough cus ome and g ow h- ela ed goals migh ,
in he end, also e lec posi i ely in inancial key pe o -
mance indica o s, companies seek o pa icipa e in a Sma
Li ing DE i s and o emos o imp o e cus ome - and
Table 2 O e iew o
in e iewed companies
conce ning hei goals wi h DE
pa icipa ion
Indus y
Home au oma ion 8
Consul ing 4
Mechanical enginee ing 3
Real es a e/housing 1
Solu ion p o ide s (so wa e) 4
Insu ance 2
Elec ical enginee ing 2
O he 3
Table 3 Ranking companies’ goals conce ning he pa icipa ion in a Sma Li ing DE
Rank
1s 2nd3 d4 h
Cus ome
pe spec i e
Lea ning and g ow h
pe spec i e Financial pe spec i eIn e nal p ocess
pe spec i e
1Value p oposi ion Collabo a ions Tu no e inc ease Technological
inno a ion
2 Cus ome loyal y Cul u e o inno a ion Ma ke alue inc ease Pe o mance
op imiza ion
3B and epu a ionDisco e ing
imp o emen po en ial Cos op imiza ion Decision-making
4Cus ome insigh s In o ma ion
managemen P o i ma gin Legal compliance
5New cus ome
acquisi ionP o essional aining Risk managemen P oduc i i y
6Ma ke sha eRisk minimiza ion Re u n on in es men
(ROI)Dis ibu ion
7Agili yEmployee sa is ac ion Asse u iliza ionSocial compliance
No e: Rank 1indica es ha he i em is mos impo an , and ank 7indica es ha he i em is leas impo an
Elec onic Ma ke s (2024) 34:16 Page 17 o 32 16
g ow h- ela ed goals. In his con ex , he Managing Di ec-
o o Technology o e seeing he de elopmen and p o-
duc ion o in e com sys ems and building communica ion
company explains, “we would like he inancial pe spec-
i e o be a one, bu ha will hen come downs eam, and
we a e wo king o keep i ha way.”
F om a cus ome pe spec i e, companies seek o join he
Sma Li ing ecosys em o imp o e hei alue p oposi ion,
cus ome loyal y, o b and epu a ion. F om a lea ning and
g ow h pe spec i e, he in e iewed companies alue he
new collabo a ion oppo uni ies such a DE b ings. Compa-
nies also seek o es ablish a s ong cul u e o inno a ion and
lea n om o he s o disco e hei po en ial o imp o e-
men . Table3 shows he ank o he espec i e pe spec i es
and he goal impo ance wi hin hose pe spec i es. Rank 1
shows ha he espec i e goal is, on a e age, o ed o be he
mos essen ial and ank 7 he leas impo an when deciding
o join a Sma Li ing DE. Impo an ly, he anks do no
e lec he opic’s o e all impo ance in o he manage ial
con ex s. Case in poin , “employee sa is ac ion” anks se en,
while “collabo a ion” anks i s wi hin he lea ning and
g ow h pe spec i e. This indica es ha al hough imp o ing
employee sa is ac ion and new collabo a ion a e essen ial
goals in he o e all con ex o any company, he manage-
men does no expec ha joining a Sma Li ing DE will
conside ably imp o e i s employees’ sa is ac ion. Ins ead, i
expec s ha joining a Sma Li ing DE will enable nume -
ous oppo uni ies o collabo a ions ha o he wise would
no ha e been possible.
To main ain a manageable le el o complexi y, we will
concen a e on he highes - anked company goals om bo h
he consume s’ and lea ning and g ow h pe spec i es (as
highligh ed wi h a g ey backg ound in Table3). F om hese
company goals, co esponding incen i es can be de i ed.
F om he consume pe spec i e, companies seek o
imp o e hei alue p oposi ion, cus ome loyal y, and
b and epu a ion. In discussions wi h domain expe s, we
de e mined ha ma ching incen i es o add ess companies’
goal o imp o ing hei alue p oposi ion wi hin he DE a e
se ing in e ope abili y s anda ds be ween he componen s
( ools, se ices, and o he p oduc s wi hin he DE); de ining
common da a exchange p o ocols o e o lessly sha e and
e alua e consume da a ac oss di e en digi al ouchpoin s
in he DE; uni ied use p o iles ha allow o ganiza ions
o ha e a uni ied iew o a cus ome 's in e ac ions ac oss
he digi al ecosys em can help in ailo ing hei o e ings
mo e e ec i ely; es ablish a communi y o open sou ce
collabo a ion, esea ch and de elopmen collabo a ions,
and bes p ac ice sha ing. To add ess companies’ goal o
imp o ed cus ome loyal y, po en ial incen i es a e again
da a exchange p o ocols o imp o e holis ic da a-d i en
pe sonaliza ion o p oduc s and se ices; es ablishing a
cus ome communi y whe e hey can p o ide eedback and
expe iences; ensu e in e ope abili y and seamless in eg a-
ion be ween he p oduc s o se ices om di e en en i ies
in he ecosys em; p omo ing a esea ch and de elopmen
communi y whe e sha ed alue p oposi ions a e encou -
aged and ma e ialized join ly; se join s anda ds o quali y
assu ance and es ing, o make su e ha he use expe i-
ence ac oss di e en p oduc s and se ices a e seamless and
o high quali y. To a ge companies’ goal o imp o e hei
b and image, po en ial incen i es encompass es ablishing
join Co po a e Digi al Responsibili y s anda ds—i.e., a se
o bes p ac ices and guidelines abou he esponsibili ies
o he o ganiza ions when de eloping digi al p oduc s and
ac ing in he DE; p o iding a cus ome dialogue pla o m
ha bundles consume conce ns and eedback; es ablishing
a p o ide communi y o sha e bes p ac ices ela ed o b and
image, sus ainabili y commi men s, and cus ome educa ion
ini ia i es; p o iding a con lic esolu ion mechanism ha
demons a es a commi men o ai ness and hus can ele a e
a b and's image; issue anspa ency epo s s anda ds ha
highligh he b and’s commi men s, achie emen s, chal-
lenges, and plans wi hin he ecosys em.
F om a lea ning and g ow h pe spec i e, companies seek
o imp o e collabo a ions, es ablish a cul u e o inno a ion,
and disco e imp o emen po en ial. Incen i es ha could
a ge his company goal encompass es ablishing a commu-
ni y wi h sha ed esea ch and de elopmen ini ia i es, bes
p ac ices, open inno a ion challenges, and join en u e ini-
ia i es; p o iding collabo a i e digi al ools be ween he
en i ies on he supply side o he ecosys em; sha ed p o o-
yping labs o collabo a i e idea p o o yping and es ing;
sha ed knowledge managemen and lea ning pla o ms o
idea and alue p oposi ion documen a ion, bes p ac ices and
p o o yping. A his s age, we no e ha al hough he lis ed
examples o enabling collabo a ions migh no be exhaus-
i e, hey depic s imuli aligned wi h companies’ goals o
achie e collabo a ions and hone hei cul u e o inno a ion.
Fo comple eness and be e unde s anding, we no e ha a
non-aligned incen i e would be one ha does no speak o
he espec i e goal o imp o ing collabo a ions. Mo e spe-
ci ically, an example o a non-aligned incen i e would be
es ablishing a B2C ma ke place whe e use s can book sma
se ices he Sma Li ing DE p o ides. Because a B2C ma -
ke place se es as a dis ibu ion channel o ecosys em se -
ices, se ing up such a ma ke place does no gene a e be e
and mo e di e se collabo a ions be ween he companies in
he ecosys em, no does i help o de elop companies’ inno-
a ion cul u e.
Keeping in mind ha alignmen o he incen i es wi h
he espec i e en i y’s needs and goals is essen ial, we now
u n o he in es iga ion o (ii) consume needs. To his end,
we i s p io i ize he second- ie goals lis ed in Fig.4. The
a ionale o ocusing only on second- ie needs is ha i s -
ie consume needs (such as good unc ionali y, easy o use,
Elec onic Ma ke s (2024) 34:1616 Page 18 o 32
eliabili y, and compliance wi h he cu en da a secu i y
and p i acy egula ions) ep esen so-called “deal b eake s”
ha a e non-nego iable. Acco dingly, i makes mo e sense o
ocus on hose second- ie op ional consume needs, which
can make a di e ence and sway consume s owa d pu chas-
ing DE o e ings ins ead o al e na i e ones.
To iden i y he op 3s- ie consume needs, we conduc ed
a bes –wo s scaling (BWS) s udy wi h 663 Ge man indi-
iduals be ween 17 and 87yea s old (Table4). Bes –wo s
scaling is an es ablished me hod o elici indi iduals’ p e e -
ences o a ious a ibu es o p oduc s and se ices (Hinz
e al. 2015). Howe e , he me hod can also be applied o
elici consume p e e ences and needs in a ious con ex s.
In BWS, pa icipan s a e asked o choose hei mos and leas
p e e ed a ibu e om a a ying se o a ibu es (Hinz
e al. 2015). In he end, he esul s o he BWS ep esen
he impo ance o he a ibu es que ied. Because he opic
o DE migh be abs ac and unknown o indi iduals, we
designed and implemen ed a BWS s udy o c ea e a anking
o he consume s’ seconda y needs conce ning ubiqui ous
and in e ope able Sma Li ing solu ions in he o m o a
i ual digi al assis an ha assis s hei use in all kinds o
daily asks.
Table5 illus a es he impo ance o second- ie consume
needs when indi iduals decide o consume and engage wi h
a Sma Li ing DE. Fi s , i shows ha da a sa e y and secu-
i y exceeding legal equi emen s a e he mos impo an
ac o s when choosing o consume p oduc s and se ices in
a Sma Li ing DE. Second, indi iduals a ach g ea impo -
ance o p oduc sa e y and liabili y, ollowed by anspa -
ency and echnological li e acy (needs wi h a g ey back-
g ound in Table5).
Again, based on domain expe s’ opinions, we can de i e
incen i es ma ching he op- anked consume needs. Fo
ins ance, o ca e o consume s’ desi e o da a p i acy
beyond he legal equi emen s and in o ma ion anspa -
ency ollowing incen i es migh apply, es ablish clea da a
go e nance—i.e., explici policies abou how da a is s o ed,
used, sha ed, and e en ually dele ed, p o iding use s cla i y
on hei da a li ecycle; end- o-end enc yp ion when da a is
ans e ed; es ablish he da a minimiza ion p inciple whe e
p oduc s and se ices and ga he only he i al da a; da a
anonymiza ion when s o ing and p ocessing da a; usage o
open sou ce secu i y s anda ds ha a e es ed by he open
communi y o ulne abili ies; egula 3 d pa y secu i y
audi s and ce i ica ions ha es i y ha he ecosys em’s
da a p i acy and secu i y measu es a e up- o-da e; ans-
pa en da a b eaches and usage epo s. Ul ima ely, i is pi -
o al o con ibu e o consume s’ educa ion ega ding DE’s
p i acy and secu i y measu es and how o op imally use he
Table 4 Demog aphic cha ac e is ics o he s udy pa icipan s su -
eyed wi h ega d o hei needs conce ning DE pa icipa ion
Demog aphics
Gende Male 55.51%
Female 44.49%
Age < 18 0.15%
18–24 3.32%
25–34 14.03%
35–44 21.42%
45–54 22.17%
55–64 15.08%
65–74 19.16%
> 75 4.68%
Educa ion Less han seconda y school ce i ica e 14.48%
Seconda y school ce i ica e 34.69%
High school diploma 20.51%
Bachelo 8.60%
Mas e /diploma o highe 21.72%
Table 5 Ranking o second- ie indi idual needs in a Sma Li ing DE
Rank
Op ional condi ions (second- ie consume needs)
1Da a p i acy and secu i y exceeding legal equi emen s
2P oduc sa e y and liabili y
3In o ma ion and anspa ency
4Educa ion/ echnological li e acy
5Access
6P io i izing consume s’ economic in e es
7Accoun abili y (dispu e esolu ion)
N
o e: Rank 1indica es ha he i em is mos impo an , ank 7indica es ha he i em is leas impo an
Elec onic Ma ke s (2024) 34:16 Page 19 o 32 16
ecosys em ools and mechanisms o ensu e hei p e e ed
da a p i acy and secu i y le el.
Rega ding consume s’ need o p oduc sa e y and liabil-
i y, i is essen ial o e ase con usion on who is accoun able
o any ha m caused by using ecosys em o e ings. As men-
ioned p e iously, he opaque and in e dependen na u e o
DEs makes i challenging o a ibu e ha m o a pa icula
componen . This, in u n, can lead o dispu es abou who
should be held accoun able and discou age inno a ion in
he digi al space. Addi ionally, due o he dynamic na u e
o he DE, o e ings migh be de eloped and deployed
wi hou being able o conduc long- e m s udies on po en-
ially ad e se side e ec s. To ca e o consume s’ need o
clea and comp ehensi e p oduc sa e y and liabili y while
encou aging inno a ion wi hin he ecosys em, DE design-
e s migh wan o assess join liabili y ia an ecosys em-
wide en i y. This could be ope a ionalized in he o m o an
insu ance mechanism ha akes e ec in case some damage
happens. Besides he join liabili y, o he sui able incen i es
o add ess consume s’ need o sa e y and liabili y include
building a communi y o collabo a i e secu i y measu es
(whe e he communi y sha es in o ma ion abou po en ial
h ea s and collabo a es on solu ions); clea liabili y ag ee-
men s among pa icipan s; (i.e., each en i y’s liabili y is
clea ly de ined); 3 d pa y ce i ica ions and audi s; dis-
ibu ed us mechanisms ha ensu e he aceabili y and
accoun abili y when componen s om di e en p o ide s
a e join ly p o iding a se ice. Again, i is ul ima ely also
essen ial o ensu e he educa ion o he consume in e ms
o sa e y. In his ein, i is pi o al o dissemina e in o ma-
ion and educa ional esou ces on sa e y p ac ices wi hin he
ecosys em communi ies, ensu ing ha all en i ies a e awa e
o bes p ac ices and po en ial h ea s.
The iden i ied incen i es a e now combinable in o a sys-
em ha syne gis ically ampli ies hei indi idual e ec s,
os e ing a collabo a i e, inno a i e, and con inuously
imp o ing en i onmen wi hin he digi al ecosys em.
Combine incen i es in oasys em
To ind he se o incen i es ha is, on agg ega e, mos
e ec i e (i.e., i has he maximal desi ed e ec on he a ge
audience), we analyze he ela ionships be ween he a ious
incen i es. To his end, we employ di e en o ches a ion
mechanisms used in Table1 and assess whe he incen i es
a e independen , compe ing, and complemen a y o each
o he . Figu e5 isualizes hese ela ionships. Fo ins ance,
he incen i es clea da a go e nance, end- o-end enc yp-
ion, and da a exchange p o ocols a e complemen a y. They
all add ess di e en ace s o da a managemen and secu-
i y, especially in he con ex o da a p i acy. While clea
da a go e nance se s he “ ules” o managing da a, end- o-
end enc yp ion p o ides he “ ools” o ensu e da a emains
con iden ial. On he o he hand, da a exchange p o ocols
ensu e smoo h and s anda dized da a ansi ions ac oss sys-
ems. Toge he , hey p o ide a comp ehensi e app oach o
da a p i acy. This way, he h ee incen i es complemen
each o he and ca e o bo h (i) consume s’ need o da a
p i acy beyond he legal equi emen s and (ii) o ganiza ions’
need o e o lessly sha e and e alua e consume da a ac oss
di e en digi al ouchpoin s in he DE. In s a k con as , he
incen i es da a minimiza ion p inciple and da a anonymiza-
ion and uni ied use p o iles a e con lic ing incen i es. Da a
minimiza ion and anonymiza ion again ca e o consume s’
need o p i acy- iendly o e ings. The uni ied use p o iles
a ge o ganiza ions’ wish o imp o e hei alue p oposi ion
h ough iche da a and he knowledge i holds abou he cus-
ome s. These incen i es a e undamen ally con lic ing since
da a minimiza ion encou ages collec ing he leas amoun o
da a necessa y, while uni ied use p o iles equi e a comp e-
hensi e collec ion o da a o a comple e iew o he use .
Simila ly, da a anonymiza ion and uni ied use p o iles a e
o ally opposi e. While anonymiza ion seeks o obscu e
consume s’ iden i ies, he pu pose o uni ied p o iles is o
p o ide indi idualized insigh s on he use . Anonymizing a
uni ied p o ile signi ican ly limi s i s use ulness.
Based on he ela ionships be ween he incen i es mapped
ou in Fig.5, we can design an incen i e sys em ha ha -
monizes con lic ing incen i es and accommoda es bo h
independen and complemen a y ones. Figu e6 depic s he
incen i e sys em de i ed o ou speci ic example. In ou
case, he incen i e sys em encompasses ou DE compo-
nen s: p o iding a oolbox, es ablishing a communi y, ensu -
ing a join DE-wide liabili y and dispu e esolu ion and a
Pe sonal Da a Space. The ecosys em-wide oolbox should
o e se ices and ools (such as knowledge-sha ing pla -
o ms and p o o yping labs) bu also s anda ds o he DE
collabo a ion on all le els (such as in e ope abili y s anda ds
on a echnology le el and anspa ency epo s anda ds on
a manage ial le el). Fu he , DE designe s need o in es
e o s o o m a i id communi y ha ac i ely communi-
ca es and collabo a es ( o ins ance, wi hin he amewo k o
isiona y o ums, egula communi y e en s on cu ing-edge
echnologies, bes p ac ices o esea ch and de elopmen ,
o ma chmaking e en s o acili a e collabo a ions be ween
companies wi h di e en skill se s and asse s).
The hi d elemen in he incen i e sys em is a DE-wide
join liabili y and dispu e esolu ion. Knowing ha he e is
a join liabili y s uc u e assu es consume s ha hey ha e
a enues o ed ess i hings go w ong. The me e exis ence
o such a sys em signals ha o ganiza ions in he ecosys-
em a e con iden enough in hei o e ings o sha e he isk.
Addi ionally, when e e y playe in he ecosys em sha es
esponsibili y, i os e s a cul u e o accoun abili y and qual-
i y assu ance, he eby boos ing he o e all c edibili y o he
ecosys em. Ul ima ely, he las elemen o he incen i e
Elec onic Ma ke s (2024) 34:1616 Page 20 o 32
sys em is es ablishing a Pe sonal Da a Space (PDS)—a digi-
al en i onmen (e.g., a pla o m) ha enables indi iduals o
iew, manage, buy, sell, and ade pe sonal da a. The con-
cep behind a Pe sonal Da a Space is o empowe consume s
o check and moni o bu also mone ize hei da a i hey
choose o do so. Pe sonal da a space can also be essen ial in
making da a lows anspa en and ai .
Incen i e sys em ealignmen
Once in place, he e ec i eness o he incen i e sys em
needs o be moni o ed and, i necessa y, e- uned o a ac
he g oups o companies and consume s i was se up o . In
pa icula , as he DE e ol es and pa icipan s in e ac , DE
designe s migh seek o appeal o companies and indi iduals
who s ill need o join he ecosys em. As men ioned p e-
iously, incen i e sys ems a e no in ended o be s a ic
app oaches bu ecu si ely de eloped and adap ed o e ime.
Only his way we can ensu e ha he p oposed incen i e
sys em (in i s cu en e sion) will ma ch he de elopmen
o he DE i sel . Acco dingly, moni o ing loops and e ine-
men cycles should be implemen ed in he DE. To his end,
he incen i e sys em needs o be expanded wi h addi ional
s imuli ha add ess company goals and consume needs ha
ha e no been conside ed ye .
Con inuing wi h ou example, when he ini ial e sion o
he incen i e sys em (see Fig.6) accomplishes i s objec i es
and secu es he pa icipa ion o he in ended use g oups and
companies wi hin he ecosys em, i s abili y o a ac u -
he companies and use s o he DE will g adually diminish.
Fig. 5 Exempla y iden i ica ion o independen , compe ing, and complemen a y incen i es o op h ee company goals (see Table3) and con-
sume needs (see Table5)

Elec onic Ma ke s (2024) 34:16 Page 21 o 32 16
Then, i is necessa y o expand and eadjus he ini ial e -
sion o he incen i e sys em o accommoda e he equi e-
men s o addi ional companies and use g oups and y o
bind hese addi ional en i ies o he DE. F om a consume
pe spec i e, ou esea ch e ealed ha beyond he op h ee
consume needs da a p i acy, p oduc sa e y, and in o ma-
ion anspa ency, consume s alue echnology educa ion o
imp o e hei echnology li e acy (see Table5). Recognizing
he signi icance o his inding and seeking o a ac u he
consume s o he ecosys em, i is app op ia e o expand upon
he o iginal e sion o ou incen i e sys em by in eg a ing
incen i es speci ically ailo ed o add ess consume s’ wish
o enhanced echnology li e acy. These consume -di ec ed
incen i es would play a pi o al ole in no only mee ing con-
sume demands bu also in os e ing a mo e in o med and
empowe ed consume base. Such incen i es encompass he
p o ision o ecosys em-based online lea ning cou ses, an
expansion o he ecosys em communi y o accommoda e
use o ums. O he incen i es migh be he p o ision o
use - ocused ech suppo se ices o he implemen a ion o
c edi s o use engagemen in he ecosys em’s communi y.
On he company side, ou in e iews e ealed ha ano he
c ucial s a egic co po a e objec i e in digi al ecosys em
pa icipa ion (see Table3) is gaining access o consume
insigh s. Consume insigh s empowe businesses wi h
in aluable in o ma ion abou consume beha io , p e e -
ences, and ends. A med wi h his knowledge, companies
can make in o med decisions, e ine hei p oduc o e ings,
and ailo hei ma ke ing s a egies o be e esona e wi h
hei a ge audience. While such insigh s emain indispen-
sable o being able o compe e wi hin a ma ke , in eal-
i y, due o limi ed access o he necessa y da a, companies
canno always independen ly gene a e he key consume
insigh s hey need. Gi en he s a egic impo ance o con-
sume insigh s, enhancing he o iginal e sion o he incen-
i e sys em should logically p io i ize add essing his need.
To add ess companies’ desi e o (be e ) consume insigh s,
ecosys em designe s can conside implemen ing a ange o
incen i es: Fo one, he e is he p o ision o ad anced ana-
ly ics ools o mining, analyzing, and in e p e ing consume
da a mo e e ec i ely. Ano he incen i e ha a ge s he goal
o imp o ed consume insigh s could be he p o ision o
da a-sha ing ag eemen s ( o non-sensi i e da a) be ween
companies pa icipa ing in he DE. These ag eemen s should
p omo e mu ually bene icial da a sha ing ha p o i s all
in ol ed pa ne s. Fu he incen i es in ol e he p o ision
o consume - eedback mechanisms (e.g., cus ome - eedback
pla o ms, online su eys), imp o ed access o hi d-pa y
da a b oke s h ough DE pa icipa ion, and in e ope abili y
s anda ds o da a exchanges wi hin he ecosys em. Also
possible is he p o ision o gene ally alid cus ome insigh s
ha could se e a wide ange o ecosys em pa icipan s o
es ablishing a communi y o collabo a i e esea ch ini ia-
i es ha enable he pa icipa ing en i ies o ex ac he key
Fig. 6 Exempla y de eloped incen i e sys em ha add esses op h ee company goals (see Table3) and consume needs (see Table5)
Elec onic Ma ke s (2024) 34:1616 Page 22 o 32
consume insigh s hey need. Ul ima ely, a u he iable
al e na i e o se e companies’ need o (be e ) cus ome
insigh s is by p o iding an ecosys em-wide cus ome
insigh s in elligence se ice h ough an en i y owned by
he ecosys em i sel . In con as o p o iding only gene ally
alid consume insigh s, his in elligence en i y would p o-
ide ecosys em pa icipan s wi h cus ome insigh s ailo ed
o hei speci ic indus y o business a ea (i.e., insigh s on
cus ome segmen s wi hin hei business a ea, agg ega e-
le el cus ome p o iling ele an o he speci ic business a
company is ac i e in). Howe e , a pi o al elemen o his
app oach would in ol e es ablishing an in elligence en i y
wi h he esponsibili y o cen alizing and o e seeing all
ecosys em da a. This cen aliza ion is c ucial o gua an ee
ha indi idual ecosys em pa icipan s a e g an ed access
only o hei own da a and no ha o o he pa icipan s,
hus sa egua ding da a p i acy and secu i y.
In ligh o all hese conside a ions, we can p oceed o
expand he o iginal incen i e sys em (see Fig.6) o accom-
moda e he consume need o imp o ed echnology li e acy
and companies’ wish o be e consume insigh s and hus
ul ima ely inc ease ecosys em pa icipa ion. Howe e , o do
so, we i s need o align and assess he compa ibili y o he
abo e-discussed incen i es wi h each o he wi h he incen-
i es ha o m he o iginal e sion o he incen i e sys em.
The idea is o achie e an expansion o he o iginal incen i e
sys em o a ac new playe s in o he ecosys em wi hou
losing hose who a e al eady pa o he ecosys em.
In p ac ice, aligning and assessing he compa ibili y o
he new incen i es equi e a ho ough analysis o con lic s
o syne gies among consume and company goals and leg-
acy and new incen i es. In ou speci ic case, o ins ance,
he analysis e eals ha p o iding ad anced analy ics ools
con adic s he p ima y goal o da a minimiza ion. A e all,
ad anced analy ics ools o en equi e and h i e on ha ing
a weal h o da a o analyze and de i e meaning ul insigh s
om. Wi hou an ex ensi e da abase o pe o m hei unc-
ions e ec i ely, analy ics ools canno p o ide he in el-
ligence hey a e supposed o o e . Thus, when ecosys em
pa icipan s a e p o ided wi h ad anced analy ics ools, hey
migh be inclined o eques and access mo e consume da a
han is s ic ly equi ed o hei immedia e needs. Acco d-
ingly, he p o ision o ecosys em-wide ad anced analy ics
ools can c ea e a ension be ween he desi e o enhanced
da a-d i en insigh s and he p inciple o da a minimiza ion.
As mo e da a is ga he ed and p ocessed han may be s ic ly
necessa y, indi idual p i acy and da a secu i y a e po en-
ially comp omised. To econcile hese con lic ing goals, we
need o combine only incen i es ha can s ike a balance
be ween da a u ili y and minimiza ion. One ui ul a enue
o add ess his challenge is o s eng hen he Pe sonal Da a
Space en isioned in he o iginal incen i e sys em (incen i e
sys em s age 1). Wi hin he Pe sonal Da a Space, consume s
can con ol he access o hei da a and hus decide delibe -
a ely and—i hey wish—on a case-by-case basis whe he
hey sell hei da a, make i a ailable ee o cha ge, o no
a all. In combina ion wi h a well-designed Pe sonal Da a
Space, he p o ision o ad anced analy ics ools is, in
his case, a easible op ion o suppo companies in hei
endea o owa d (be e ) consume insigh s. The eby, he
design o he Pe sonal Da a Space plays a pi o al ole in
encou aging use s o willingly con ibu e hei da a o he
ecosys em. Wi hou a subs an ial amoun o consume da a,
he u ili y o he ecosys em’s da a analysis ools is highly
cons ained.
This scena io bea s esemblance o he concep o da a-
sha ing ag eemen s wi hin he di e se companies com-
p ising he DE. He e, he idea is o ensu e he exchange
o consume da a be ween he DE companies, enabling DE
pa icipan s o ex ac he consume insigh s hey equi e.
Howe e , e en wi h he implemen a ion o da a minimiza-
ion p inciples and he Pe sonal Da a Space, he me e exis -
ence o da a-sha ing ag eemen s o in e ope abili y s and-
a ds o da a exchanges may no necessa ily esul in an
abundance o imp o ed consume insigh s. The c ux lies in
whe he consume s a e willing o sha e o sell hei da a o
analy ical pu poses.
Ano he po en ially ui ul a enue o econcile consum-
e s’ and companies’ in e es s conce ning da a collec ion is
he p o ision o he consume insigh s ecosys em-wide in el-
ligence se ice ha o e s companies he necessa y insigh s
wi hou di ulging indi idual consume da a o indi idual
companies. I p esen s a ha monious solu ion wi hou con-
lic ing wi h o he incen i es wi hin he sys em, as compa-
nies wi hin he ecosys em a e supposed o ga he only he
minimal necessa y da a equi ed o p o ide hei espec i e
p oduc s and se ices. When agg ega ed, he minimalis ic
da a sou ces collec ed by each ecosys em pa icipan h ough
hei p oduc s and se ices can e ol e in o a aluable asse
o ex ac ing consume insigh s. In his manne , implemen -
ing he consume insigh s in elligence se ice aligns wi h
he in e es s o bo h companies and consume s. I can o e
companies he desi ed cus ome insigh s while upholding
he c i ical p inciple o da a minimiza ion and p ese ing
consume p i acy.
Gi en he impo ance o consume s’ willingness o sha e
o sell hei da a o be e insigh s, bo h o he a o emen-
ioned incen i es (i.e., he Pe sonal Da a Space and con-
sume insigh s in elligence se ice) should be implemen ed
alongside one o mo e consume echnology li e acy cam-
paigns. Such campaigns enable ecosys em designe s o
add ess consume s’ need o enhanced echnology li e acy
while os e ing g ea e accep ance and willingness among
indi iduals o sha e hei da a o ecosys em- ela ed pu -
poses. In essence, he echnology li e acy campaigns should
o e educa ional ma e ials explaining he ecosys ems’
Elec onic Ma ke s (2024) 34:16 Page 23 o 32 16
p oduc s and se ices’ unc ionali y, he unde lying ech-
nologies, and he ole o da a o he pe sonaliza ion and u il-
i y o he ecosys ems’ p oduc s and se ices. In his sense,
such campaigns should p esen de ailed in o ma ion abou
how he cus ome insigh s se ices a e compiled, he speci ic
da a sou ces hey u ilize, and he po en ial bene i s o hese
insigh s o he cus ome s hemsel es, along wi h explana-
ions o he measu es in place o sa egua d consume s’ da a
sa e y and p i acy.
As discussed p e iously, besides he Pe sonal Da a Space
and he p o ision o consume insigh s in elligence se ice,
ecosys em designe s can acili a e he gene a ion o ele-
an cus ome insigh s by implemen ing consume - eedback
mechanisms o a communi y o collabo a i e esea ch ini-
ia i es among companies. The cus ome - eedback mecha-
nism will mos likely ha e wo bene icial ou comes. Fo one,
i will inc ease consume s’ in ol emen in he ecosys em
and hus hei loyal y o he ecosys ems’ p oduc s and se -
ices. A he same ime, i will also p o ide insigh s in o he
ocal opics ha should be add essed du ing he echnology
li e acy campaign(s). Such a cus ome - eedback mechanism
will also wo k well wi h he cus ome dialogue pla o ms in
he ini ial e sion o he incen i e sys em. Likewise, es ab-
lishing a communi y o collabo a i e esea ch ini ia i es
is complemen a y o he al eady en isioned e o s o he
communi y in he i s e sion o he incen i e sys em. Thus,
hese wo incen i es could ex end he ini ial e sion o he
incen i e sys em wi hou any expec ed complica ions.
Finally, access o hi d-pa y da a b oke s s ands ou as
ano he p omising a enue o enabling companies o gain he
consume insigh s hey equi e. This incen i e is ela i ely
au onomous om he ini ial e sion o he incen i e sys em.
Thus, i could expand he ini ial e sion o he incen i e sys-
em h ough implemen ing a ange o app oaches. One iable
op ion is es ablishing amewo k con ac s o o he ag ee-
men s ha g an ecosys em membe s p e e en ial and cos -
e ec i e access o hi d-pa y b oke s. Ano he op ion is ha
he ecosys em i sel buys access igh s o hi d-pa y b oke s
and dis ibu es hese access igh s based on a poin s-based
sys em. In his scena io, e e y ecosys em membe acc ues
Fig. 7 Realigned (ex ended)
incen i e sys em (based on he
incen i e sys em s age 1)
Elec onic Ma ke s (2024) 34:1616 Page 24 o 32
poin s based on hei le el o pa icipa ion, con ibu ion, o
engagemen wi hin he ecosys em. These poin s could hen
be edeemed o access o hi d-pa y da a b oke s, which
ensu es ha access is ied o ac i e in ol emen wi hin he
ecosys em. This app oach main ains ai ness wi hin he eco-
sys em, as i is no a o ing any speci ic membe o e o he s.
To sum up, a sui able ex ension o he o iginal e sion
o he incen i e sys em (see Fig.7) should encompass he
ollowing addi ional incen i es: a consume insigh s in el-
ligence se ice en i y, access o hi d-pa y da a b oke s, and
a communi y expansion. The communi y expansion should
include a cus ome - eedback mechanism, a collabo a i e
esea ch en i onmen o consume insigh s, and educa ional
ma e ials o he echnology li e acy campaign.
Discussion
This a icle d aws upon exis ing li e a u e on digi al pla -
o ms and pla o m ecosys ems (e.g., L. Chen e al., 2022;
K e schme e al., 2022; Kuang e al., 2019; Ojala & Lyy -
inen, 2022; X. Sun & Zhang, 2021) o p opose an in eg a ed
amewo k o iden i ying and o ches a ing incen i es in o
incen i e sys ems ha a ac and engage wo species o he
DE: consume s and companies. The amewo k ou lines he
key componen s o designing hese sys ems, emphasizing
in e connec ions like he alignmen o company and con-
sume needs. I p oposes me hods o ha monize in e wined
incen i es, ensu ing cohesi e incen i es ac oss ecosys em
ac o s.
We unde s and incen i e sys ems as a se o incen i es
ha ha e a maximum e ec on he a ge audience and lead
hem owa d he desi ed beha io . Agains his backg ound,
he complexi y o designing incen i e sys ems s ems om
wo ac o s: Fi s , incen i es in he con ex o DEs a e much
di e en om “o ganiza ional incen i es” (L. Chen e al.,
2022). Whe eas o ganiza ional incen i es a e ypically
ega ded as a s uc u al a ibu e o an o ganiza ion, in he
con ex o DEs, hey a e key go e nance mechanisms o
ensu e ecosys ems’ success (L. Chen e al., 2022; X. Sun
& Zhang, 2021). They also di e in e ms o hei ope a-
ional ocus, goals, and he na u e o s akeholde engage-
men . O ganiza ional incen i es a e p ima ily designed
o enhance employee pe o mance, ensu e ha employee
ac ions align wi h he company’s s a egic objec i es, os e
employee loyal y, and inc ease e en ion (Saleem, 2011). On
he con a y, DE incen i es ha e a b oade each as hey
os e collabo a ion and symbiosis among a ious loosely
connec ed s akeholde s wi h independen and some imes
compe ing in e es s. Fu he mo e, DE incen i es a e c a ed
o encou age ac i e pa icipa ion, acili a e coope a ion, and
d i e collec i e alue c ea ion wi hin he ecosys em (Adne ,
2017; L. Chen e al., 2022; Valdez-De-Leon, 2019).
DE incen i es a e pi o al go e nance mechanisms
because hey o ches a e he complex in e play be ween
au onomous ye in e dependen ac o s. The p ima y ocus
o hese incen i e sys ems ex ends beyond me ely a ac ing
and main aining pa icipan s; i is abou s a egically guiding
he ecosys em owa d sus ainable g ow h. These incen i es
a e me iculously designed no jus o esol ing con lic s
o aligning di e se, o en compe ing in e es s wi hin he
ecosys em. Ra he , hei pi o al ole lies in e ec i ely in e-
g a ing aluable ac o s in o he ecosys em. By ha monizing
hese a ied in e es s, he incen i es acili a e coope a i e
and mu ually bene icial in e ac ions among all playe s in
he ecosys em.
In DEs, pa icipan s join ly con ibu e o he ecosys em’s
success by c ea ing echnologies, se ices, o p oduc s ha
o he ecosys em pa icipan s can ecombine o gene a e new
in e connec ed and complemen a y p oduc s and se ices.
While hese in e connec ed p oduc s and se ices o e hei
use supe io alue han adi ional p oduc s, hey ypically
do no ma e ialize in coope i i e en i onmen s, whe e com-
panies ope a e independen ly. E ec i e ha moniza ion o
in e es s wi hin he DE p omo es collabo a ion and coop-
e a ion among he pa icipan s. This, in u n, leads o he
co-c ea ion o alue and an expanded ma ke p esence,
d i ing sus ainable g ow h h ough wo main channels: On
he consume side, enabling co-c ea ed alue enhances use
sa is ac ion and os e s high cus ome loyal y. This, in u n,
ac i a es a second g ow h channel— he con inued engage-
men o companies wi hin he ecosys em. F om a company
pe spec i e, in a s able en i onmen wi h p omising collabo-
a ion oppo uni ies, businesses a e mo e likely o emain
engaged and commi ed o he long haul, which is i al o
he pe pe ual g ow h o he ecosys em.
In con as o o ganiza ional incen i es, DE incen i es
a e s uc u ed o ensu e he cohesi e unc ioning and s a-
egic p og ession o he b oade digi al ecosys em. This
way, incen i es in DEs a e ins umen al in he go e nance
o he ecosys em—i.e., c ea ing condi ions ha enable and
coo dina e he in e ac ions be ween ac o s (e.g., he low o
esou ces) wi hou losing he ad an ages o decen alized
decisions (L. Chen e al., 2022; Teece, 2017).
Due o he complexi y o de eloping incen i e sys-
ems o DE pa icipa ion, we d aw on a ious models and
insigh s om he o ganiza ional s a egic managemen li e a-
u e and echnology adop ion li e a u e o comp ehensi ely
explo e companies’ and consume s’ needs. Fo ins ance, we
adap ed he BSC, which is ypically a gene al managemen
ool, o he con ex o DEs o speci y and elabo a e app o-
p ia e business goals and incen i es om a ious s a egic
pe spec i es wi hin a company. In addi ion, we also syn-
hesized and applied se e al echnology adop ion models
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ju isdic ional claims in published maps and ins i u ional a ilia ions.