Abstract

"Developmental ecosystems in the Americas: the Emergence and transformation of the Autonomous Development Corporation CVC in Colombia 1954-2000"

Julio Cesar Zuluaga, Univeridad Icesi (julio.zuluaga@javerianacali.edu.co)

This study explores the emergence, evolution, and decline of “developmental ecosystems,” a novel type of business ecosystem I conceptualize at the intersection of the private and public spheres to drive development, particularly in regions with institutional weaknesses and resource constraints. Integrating insights from institutional theory, business ecosystems, and organizational capabilities literatures, the research examines the strategies, governance structures, and mechanisms employed by ecosystem leaders to coordinate, cooperate, and adapt throughout the lifecycle of a developmental ecosystem.

Focusing on the Cauca Valley Corporation (CVC) in Colombia, established in 1954 and modelled after the Tennessee Valley Authority (TVA) in the U.S., this study highlights the formation and transformation of one of Latin America’s pioneering regional development bodies. The CVC pioneered hybrid governance, fostering regional growth through the collaboration of public and private entities at central and subnational levels. The research methodology presents a longitudinal case study analyzing board minutes spanning five decades, enriched by Topic Modelling techniques, to reveal the corporation’s power dynamics, resource challenges, and evolving organizational capabilities.

The study further discusses how developmental ecosystems offer platforms for negotiation and influence over development policies, with significant implications for economic progress. However, it also details the decline of such ecosystems, marked by institutional changes and diminishing influence of ecosystem leaders, as seen in 1994 when neoliberal reforms reshaped the CVC’s mission and impact. The main argument posits that developmental ecosystems emerge as a response by business elites to navigate governance challenges and foster development in constrained environments.