A theory of power in emerging software ecosystems formed by small-to-medium enterprises

In a software ecosystem, partner companies rely on each other to succeed and survive. This scenario of mutual dependence entails a flow of power among companies. Power is an intrinsic property of their relationship and an asset to be exercised with a degree of intentionality. This paper presents a substantive theory to explain how power and dependence manifest in partnerships among small-to-medium enterprises (SMEs) building a software ecosystem. We performed exploratory case studies of two emerging software ecosystems formed by SMEs. We interpreted the results in light of a theoretical framework underpinned by French and Raven's power taxonomy. Finally, we performed a cross-case analysis to evaluate our findings and build the theory. The proposed theory highlights the interactions among different forms of power and corresponding sources of power employed by companies. It provides a better understanding on how power and dependence influence the behaviour and coordination of companies within a software ecosystem. The theory is a useful lens for researchers to explore ecosystem partnerships by understanding the structure and impact of power relationships between partners. In addition, it is a valuable tool for companies to analyse power distribution and define sustainable strategies for software ecosystem governance.