How do traditional low-end manufacturing enterprises build business ecosystems? Evidence from a case study

The business ecosystem is becoming an effective strategy for enterprises to navigate the dynamic environment. However, existing theories on business ecosystem formation mainly rely on the assumptions of resource-advantaged enterprises and pre-existing partners or predefined value propositions, which are not applicable to traditional low-end manufacturing enterprises. To address these gaps, we conducted a case study to explore the dynamic emergence process of the business ecosystem for traditional low-end manufacturing enterprises based on the Gioia methodology. We proposed progressive value chain restructuring as a novel mechanism for traditional low-end manufacturing enterprises to build business ecosystems. This mechanism includes three sub-dimensions: vertical integration, horizontal expansion, and collaboration. We further summarised a process framework to illustrate how the enterprise uses these mechanisms to gradually establish a business ecosystem. These findings extend the existing theories on business ecosystem formation and provide practical insights into the transformation of traditional low-end manufacturing enterprises.