This study aims to explore how governance mechanisms shape inter-organizational relationships within a nested entrepreneurial ecosystem (EE) orchestrated by a large firm. It addresses the need to move from macro-level perspectives towards micro-level analyses, examining how a global firm in an emerging economy manages coordination, incentives and trust among diverse actors.
The research employs a longitudinal single-case study of a nested EE in China. Data were gathered through 21 semi-structured interviews, observations and extensive archival sources. A process research methodology, combining narrative and temporal bracketing strategies, was used to analyse the evolution of governance mechanisms across different phases of ecosystem development.
The study identifies a diverse set of governance mechanisms rooted in incentives, control and trust, which differ across actor types (service, capital, knowledge, policy) and evolve through three phases: exploration, growth and expansion. Governance shifts from hierarchical, control-oriented mechanisms towards more relational, trust-based approaches, with digital platforms increasingly facilitating coordination and transparency. Governance is shown to be co-shaped by the orchestrating firm, ecosystem actors and the institutional environment.
This single-case study contributes by offering a micro-level, inter-organizational perspective on governance within nested ecosystems, an underexplored configuration in emerging economies. It demonstrates that orchestrators deploy a portfolio of mechanisms that adapt to context, actor type and ecosystem stage. The study enriches theory by applying agency perspectives to EE governance and provides practical insights for firms and policymakers engaged in ecosystem orchestration, particularly in similar contexts.
