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Platform ecosystems represent a dominant organizational form in digitally networked markets, where value emerges from the coordinated interactions of a platform leader and diverse complementors rather than from hierarchical control. This theory-development article examines how innovation coordination mechanisms enable collective value creation amid tensions between actor autonomy and ecosystem-level alignment. Synthesizing insights from peer-reviewed studies, the analysis identifies gaps in existing explanations of distributed innovation processes, complementor co-innovation, and governance in dynamic digital environments. A novel conceptual framework is advanced that integrates orchestration capabilities, modular coordination structures, and feedback loops linking innovation outcomes to ecosystem evolution. Five theoretical propositions articulate causal relationships among platform governance, complementor engagement, collective value creation, and sustained innovation performance. The framework highlights how digital network effects amplify both opportunities and tensions in innovation coordination. By reframing platform ecosystems as meta-organizations that require active coordination among distributed innovation actors, the article offers a process-oriented theory of collective value creation that extends the current ecosystem and platform literature. Implications for managers emphasize adaptive governance that balances control with openness to foster co-innovation without stifling autonomy. The proposed model offers actionable pathways for orchestrating innovation in digitally networked business environments.