Orchestrating business relationships in service ecosystems: Evidence from a digital tourism transformation in Oman

This paper investigates how the introduction of a digital distribution platform in a service industry, namely, tourism reshapes business relationships within ecosystems undergoing digital transformation. Taking an “interaction approach” as a theoretical lens to understand the development of business relationships in service ecosystems, this research bridges interaction and orchestration theories with relevance for general management on the active management of relationships in different levels of service ecosystems. The paper contributes new empirical evidence to research in the management of business relationships in service ecosystems in the Omani tourism destination sector. Drawing on a qualitative case study research methodology, the research combines semi-structured interviews and a “World Café” research event involving key ecosystem actors, including government entities, airports, hoteliers, destination management companies, small- and medium-sized companies, and technology providers. The findings show that building relational capital, especially trust and cooperation, is central to enabling digital transformation and sustaining collaboration in service ecosystems. A multi-level relationships framework is developed, whereby orchestration emerges at the meso level, connecting institutional priorities, technological resources, and market-facing relationships. Trust, cooperation, stakeholder alignment, and shared vision are not merely contextual conditions; they are orchestration practices through which digital transformation becomes accepted, embedded, and legitimized across the ecosystem. The study uncovers tensions between technological standardization and the human dimensions of relationships, highlighting a need to balance technological efficiency with the organizational management of relational interactions in service ecosystems. The theoretical contributions of the paper focus on determining how interaction and relationships can be managed in service ecosystems through conceptualizing meso-level orchestration as a distributed relational capability that enables digital transformation across ecosystem levels. Managerial implications include the design of trust-building initiatives in relationships, the empowerment of meso-level orchestrator actors, and the adoption of participatory engagement mechanisms to strengthen relationship management and ensure sustainable digital transformation in tourism service ecosystems.