Özalp’s research explores the impact of industrial and technological change on platform ecosystems and firms. Technology companies and particularly platform companies, represent an ever more important share of the modern economy.

A threat from within the ecosystem

The study focuses on the mobile telecom sector between 2001 and 2011. At that time, Ericsson played a central role in coordinating the ecosystem around 3G technology and was preparing LTE as the next standard. Meanwhile, Intel promoted WiMAX as an alternative 4G technology. This put Ericsson in a difficult position. As the ecosystem leader, it was expected to stay open and supportive. At the same time, WiMAX posed a direct threat to its long-term strategy.

The ‘orchestrator’s dilemma’

The authors describe this tension as the 'orchestrator’s dilemma'. Ecosystem leaders must choose between cooperating with new entrants or competing against them. Open resistance can damage trust and legitimacy, but cooperation can strengthen rivals and weaken existing technologies.

Saying one thing, doing another

The study shows that Ericsson managed this dilemma by separating what it said from what it did. Publicly, the company sometimes appeared open or neutral towards WiMAX. Internally, it continued to invest heavily in its own technology. By adjusting its public messages to the level of support WiMAX received from other players, Ericsson gained time, avoided open conflict, and quietly strengthened LTE. This approach helped the company maintain its leadership position.

Three ways to respond

The researchers identify 3 typical responses ecosystem leaders use as support for a newcomer changes:

• staying silent when support is low;
• signalling cooperation while quietly competing when support grows;
• openly competing when support starts to fade.

These responses are flexible and can change over time. The study shows that public signals are not always transparent and can be used strategically to influence perceptions.

Why this matters

For ecosystem leaders, the research highlights the value of communication strategies. Signals are quicker and cheaper to adjust than large investments. For other ecosystem participants, the findings are a reminder to look beyond public statements. Supportive words do not always reflect real intentions.

More broadly, the study helps explain why some promising innovations lose momentum. Success depends not only on technology, but also on how established players manage perceptions and respond behind the scenes.