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This paper studies holistically the supply-chain ecosystem of a focal firm, when the firm innovatively deciphers a market invitation. It employs the thinking logic and methodology of systems science to establish a series of generally true conclusions regarding the challenges facing either the suppliers or the complementors.  In particular, this paper shows among results that (1) challenges upstream components face help build performance advantage for the focal firm over its competitors; however, if the firm’s challenges are mostly on its upstream suppliers, then the performance advantage’s lifespan will be greatly shortened. (2) An innovative firm has to consider the availability and development of appropriate complements in its introduction of innovative products. (3) In contracting with upstream suppliers, a focal firm has to deal with technological uncertainty and suppliers’ behavioral uncertainty with the former affects the firm’s ability to create value and the latter impacts its ability to capture value. And (4) a firm’s performance advantage, as a consequence of applying vertical integration within the firm’s ecosystem, increases over time within the life cycle of the technology developed to meet the firm’s innovative need. At the conclusion of this paper, practical managerial recommendations and open questions for future research are given.

capability of learning; innovative offer; market invitation; performance advantage; systemic yoyo; uncertainty