In the digital age, data has emerged as a nonrival factor of production characterized by increasing returns to scale. However, its value is maximized only when it is fully transformed into products or services, and there is an inherent challenge regarding data privacy during its utilization. Addressing these complexities necessitates a multi-stakeholder, co-evolutionary mechanism - an ecosystem - to navigate uncertainties in the data market and fully unlock data’s potential value. Building upon the theoretical framework concerning the overarching operations of business ecosystems, this paper delved into the intricacies of Data Ecosystem (DE) value creation. It scrutinizes the process, configuration, and evolutionary patterns of DE through a cross-case study involving leading digital firms and associations. Our cross-case analysis reveals a tripartite value creation process in DEs, comprised of data resource licensing, data factors trading, and data products/services development. For optimal value creation, the configuration of a DE should include both a data value network and a data community network. Informed by these elements, this study also outlines the evolutionary patterns of DEs. This research enriches the burgeoning literature on data markets and business ecosystem theory, particularly in complementarities and value creation processes. Moreover, it offers practical implications for firms aiming to construct effective data ecosystems.
