Conceptual Framework

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Chapter 4 METHODOLOGY

4.1 Conceptual Framework

At the beginning of this section, we will illustrate the conceptual framework of our system which shows in Figure 4.1. There are five significant concepts in our conceptual framework, which are Completeness Operant Configuration, Degree of Operant Empowerment, Operation Flow of Linkware Design, Network Effect of Ecosystem, and Critical Mass of Ecosystem Participants. Besides, the first three concepts are the Destination Value Configuration of Digital Ecosystem Entities, which is proposed to help designers construct a digital ecosystem with a mindset of destination.

Figure 4.1 Conceptual Framework of D³ Accelerator

 Destination Value Configuration of Digital Ecosystem Entities:

In order to construct a digital ecosystem with the lower cost and efficient blockchain technology, that is also qualified to become a destination, we propose a meta concept: Destination Value Configuration of Digital Ecosystem Entities. This meta concept is composed of Completeness Operant Configuration, Degree of Operant Empowerment, and Operation Flow of Linkware Design.

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In Service-Dominant Logic, the core value is to increase human well-being, based on the specialized knowledge and skill of individuals (i.e., the operant resources). This is the way to realize the notion moving to the exchanges of operant resources from those of the operand resources. From operand to operant resources has implications in comprehending the interactions within digital ecosystem and the construction of digital ecosystem, that are markedly distinct from focusing on only the exchange of operand resources and has ramifications for realizing the value exchange process potentially (Vargo & Lusch, 2008).

First of all, to design a quality digital ecosystem with positive interactions, we need every stakeholder to be an operant rather than an operand. Constantin and Lusch (1994) defined operand resources as resources on which an operation or act is performed to produce an effect, and they compared operand resources with operant resources, which are employed to act on operand resources and other operant recourses (Vargo & Lusch, 2004). Operant is more valuable and can cause value added effect in the digital ecosystem. That is the reason why we provide a Completeness of Operant Configuration, which is an operant analysis instrument for designers to get to know about the resources their partners and stakeholders in the ecosystem can supply for value-adding. And we believe that completeness of operant resources is the basic requirement for designing a digital ecosystem and for reaching the critical mass further, also why we need to define a combination of stakeholders that can co-create value, can operate harmoniously, and can sustain permanently to fulfill a de-centralized, interactive digital ecosystem.

Next is about the Degree of Operant Empowerment, an empowerment strategy designs guidance that can help designers come up with a well-planned manipulation to enhance the motivation of stakeholders’ value co-creating, make sure the strategy is developed with feasibility, and confirm all the stakeholders are beneficial and necessary.

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According to previous research, top management leadership and employee empowerment are considered to be two of the most important principles of total quality management (TQM) due to their assumed relationship with customer satisfaction. And the research result reveals that positive correlation between top management leadership, employee empowerment, job satisfaction, and customer satisfaction. (Ugboro & Obeng, 2000). Matching to the concept of stakeholder empowerment in the digital ecosystem, we believe a superior empowerment strategy can improve levels of stakeholder satisfaction and also customer satisfaction. Furthermore, the satisfaction exerts an influence on the willingness and the probability of joining the ecosystem, that is certainly without any doubt. In this way, we subsume the concept of empowerment into the Destination Value Configuration of Digital Ecosystem Entities.

Last but not least comes to Operation Flow of Linkware Design, an implement that can measure the fulfillment of the flow experience. Service provision is a set of procedures from the very beginning to the end of service operations. The interaction and communication within these procedures has become an important component in the development of better service (Dong & Siu, 2013) and we believe that is the pivot of success or failure to launch a destination of digital ecosystem. Since Internet has arisen, online service can be seen as an information-intensive industry. We can argue that a business’ performance, for instance, customer satisfaction, loyalty, share of voice, etc., will be dependent on its customers’ experiences related to the flow of events within the service delivery process (Chase & Dasu, 2001). As a matter of fact, the concept of flow experience is wildly used in service optimization, especially for hasten customer’s decision making and service delivering (Gentile, Spiller, & Noci, 2007; Verhoef et al.

2009). Thus, we believe reaching the flow experience can consolidate the existing customer and can be the incentive for new customer to accede to the digital ecosystem.

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In conclusion, possessing enough participants (include stakeholders and customers) that is able to cause the network effect is the first step to grow into a destination.

Destination Value Configuration of Digital Ecosystem Entities is composed by the factors of service design that is related to the network effect, and have a positive impact on reaching critical mass. That is to say, it is an implement for service designers to make sure their designs are conforming with ecosystem participants’ demand and are getting on the track of the fulfillment.

 Arising Level of Network Effect Factors:

As reaching the critical mass, network effect is the cause and effect of the following to be considered, which is the concept about how the participation of one participant will affect others when making service choices, and so does the other hand (Liebowitz & Margolis, 1994). The value of the ecosystem service can be increased by the number of participants while the network effect was triggered. Arising Level of Network Effect Factors are influential elements of network effect proposed in our research project – D³ Accelerator, elaboration of each element please reference to Chiang, 2017; Kuo, 2017; and Chen, 2017. To ensure the sustainability of the designed digital ecosystem and to be ambitious of growing into a destination, we assume that to reinforce the network effect will be beneficial for approaching the critical mass, in addition, to make sure there is no negative effect interact within the Destination Value Configuration of Digital Ecosystem Entities is also a prerequisite of reaching our value proposition. Besides, in the research of Boudreau & Jeppesen (2015), they discovered that there is a positive causal response between platform development rates and the growth of platform usage. Mapping to our research means that improving the efficiency of building the digital ecosystem will cause a positive effect on the growth to reach the critical mass. We argue that designing a digital ecosystem with the blockchain

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technology, which can lower the development cost and can increase the efficiency, has somehow interdependent with decreasing the negative effect and help the digital ecosystem reaching the critical mass.

 Fulfillment of Critical Mass:

Critical mass in this research represent a concept of the number of participants in the digital ecosystem meeting a critical point that is able to trigger network effect (or we can say as network externality). As the Internet provides an universal access media for people all over the world, the connection between each node of the access and the power of its effect is unable to be underestimated. The universal access alike the concept of a public service that every participant can not be prevented from enjoying even if they do not contribute to the ecosystem. In addition, the participant of the ecosystem should entail the mutual interdependence of the previous participants and afterwards (Markus, 1987). Consequently, for providing a value-added service, for increasing the participants of the ecosystem, and for lasting out the duration of the digital ecosystem, we deem that reaching the critical mass will be the first priority to do and also the prerequisite of the design pattern. As a result, our research proposition is to measure fulfillment of critical mass in order to help service designers acquaint with their position of service design and to give some hints of direction that can improve the design.