Positive Demand Spillover of Popular App Adoption: Implications for Platform Owners’ Management of Complements

Published Online:https://doi.org/10.1287/isre.2022.1164

References

  • Adner R, Kapoor R (2010) Value creation in innovation ecosystems: How the structure of technological interdependence affects firm performance in new technology generations. Strategic Management J. 31(3):306–333.CrossrefGoogle Scholar
  • Alba JW, Chattopadhyay A (1985) The effects of context and part-category cues on the recall of competing brands. J. Marketing Res. 22(3):340–349.CrossrefGoogle Scholar
  • Al-Natour S, Cavusoglu H, Benbasat I, Aleem U (2020) An empirical investigation of the antecedents and consequences of privacy uncertainty in the context of mobile apps. Inform. Systems Res. 31(4):1037–1063.LinkGoogle Scholar
  • Angrist JD, Pischke JS (2008) Mostly Harmless Econometrics: An Empiricist’s Companion (Princeton University Press, Princeton, NJ).CrossrefGoogle Scholar
  • Balachander S, Ghose S (2003) Reciprocal spillover effects: A strategic benefit of brand extensions. J. Marketing 67(1):4–13.CrossrefGoogle Scholar
  • Bertrand M, Duflo E, Mullainathan S (2004) How much should we trust differences-in-differences estimates? Quart. J. Econom. 119(1):249–275.CrossrefGoogle Scholar
  • Binken JLG, Stremersch S (2009) The effect of superstar software on hardware sales in system markets. J. Marketing 73(2):88–104.CrossrefGoogle Scholar
  • Boudreau KJ (2010) Open platform strategies and innovation: Granting access vs. devolving control. Management Sci. 56(10):1849–1872.LinkGoogle Scholar
  • Boudreau KJ (2012) Let a thousand flowers bloom? An early look at large numbers of software app developers and patterns of innovation. Organ. Sci. 23(5):1409–1427.LinkGoogle Scholar
  • Boudreau KJ, Jeppesen LB (2015) Unpaid crowd complementors: The platform network effect mirage. Strategic Management J. 36(12):1761–1777.CrossrefGoogle Scholar
  • Brown S, Kozinets RV, Sherry JF Jr (2003) Teaching old brands new tricks: Retro branding and the revival of brand meaning. J. Marketing 67(3):19–33.CrossrefGoogle Scholar
  • Cameron AC, Trivedi PK (2005) Microeconometrics: Methods and Applications (Cambridge University Press, Cambridge, UK).CrossrefGoogle Scholar
  • Clogg CC, Petkova E, Haritou A (1995) Statistical methods for comparing regression coefficients between models. Amer. J. Sociol. 100(5):1261–1293.CrossrefGoogle Scholar
  • Danaher PJ, Smith MS (2011) Modeling multivariate distributions using copulas: Applications in marketing. Marketing Sci. 30(1):4–21.LinkGoogle Scholar
  • Edelman B, Lai Z (2016) Design of search engine services: Channel interdependence in search engine results. J. Marketing Res. 53(6):881–900.CrossrefGoogle Scholar
  • Ellison NB, Steinfield C, Lampe C (2007) The benefits of Facebook “friends:” Social capital and college students’ use of online social network sites. J. Comput. Mediated Comm. 12(4):1143–1168.CrossrefGoogle Scholar
  • Erdem T, Sun B (2002) An empirical investigation of the spillover effects of advertising and sales promotions in umbrella branding. J. Marketing Res. 39(4):408–420.CrossrefGoogle Scholar
  • Fang X, Hu PJH, Li Z, Tsai W (2013) Predicting adoption probabilities in social networks. Inform. Systems Res. 24(1):128–145.LinkGoogle Scholar
  • Fedorikhin A, Park CW, Thomson M (2008) Beyond fit and attitude: The effect of emotional attachment on consumer responses to brand extensions. J. Consumer Psych. 18(4):281–291.CrossrefGoogle Scholar
  • Farrell J, Katz ML (2000) Innovation, rent extraction, and integration in systems markets. J. Indust. Econom. 48(4):413–432.CrossrefGoogle Scholar
  • Foerderer J, Kude T, Mithas S, Heinzl A (2018) Does platform owner’s entry crowd out innovation? Evidence from Google photos. Inform. Systems Res. 29(2):444–460.LinkGoogle Scholar
  • Garthwaite CL (2014) Demand spillovers, combative advertising, and celebrity endorsements. Amer. Econom. J. Appl. Econom. 6(2):76–104.CrossrefGoogle Scholar
  • Gawer A, Cusumano MA (2002) Platform Leadership: How Intel, Microsoft, and Cisco Drive Industry Innovation (Harvard Business School Press, Boston).Google Scholar
  • Gawer A, Henderson R (2007) Platform owner entry and innovation in complementary markets: Evidence from Intel. J. Econom. Management Strategy 16(1):1–34.CrossrefGoogle Scholar
  • Greene WH (1981) Sample selection bias as a specification error: A comment Econometrica 49(3):795–798.CrossrefGoogle Scholar
  • Han SP, Park S, Oh W (2016) Mobile app analytics: A multiple discrete-continuous choice framework. MIS Quart. 40(4):983–1008.CrossrefGoogle Scholar
  • Haviv A, Huang Y, Li N (2020) Intertemporal demand spillover effects on video game platforms. Management Sci. 66(10):4788–4807.LinkGoogle Scholar
  • Heckman JJ (1979) Sample selection bias as a specification error. Econometrica 47(1):153–161.CrossrefGoogle Scholar
  • Hendricks K, Sorensen A (2009) Information and the skewness of music sales. J. Political Econom. 117(2):324–369.CrossrefGoogle Scholar
  • Herr PM, Farquhar PH, Fazio RH (1996) Impact of dominance and relatedness on brand extensions. J. Consumer Psych. 5(2):135–159.CrossrefGoogle Scholar
  • Hwang M, Park S (2016) The impact of Walmart Supercenter conversion on consumer shopping behavior. Management Sci. 62(3):817–828.LinkGoogle Scholar
  • Joshi A, Mao H (2012) Adapting to succeed? Leveraging the brand equity of best sellers to succeed at the box office. J. Acad. Marketing Sci. 40(4):558–571.CrossrefGoogle Scholar
  • Katz ML, Shapiro C (1994) System competition and network effects. J. Econom. Perspect. 8(2):93–115.CrossrefGoogle Scholar
  • Knapp A-K, Hennig-Thurau T, Mathys J (2014) The importance of reciprocal spillover effects for the valuation of bestseller brands: Introducing and testing a contingency model. J. Acad. Marketing Sci. 42(2):205–221.CrossrefGoogle Scholar
  • Krijestorac H, Garg R, Mahajan V (2020) Cross-platform spillover effects in consumption of viral content: A quasi-experimental analysis using synthetic controls. Inform. Systems Res. 31(2):449–472.LinkGoogle Scholar
  • Kuksov D (2007) Brand value and social interaction. Management Sci. 53(10):1634–1644.LinkGoogle Scholar
  • Kwon HE, So H, Han SP, Oh W (2016) Excessive dependence on mobile social apps: A rational addiction perspective. Inform. Systems Res. 27(4):919–939.LinkGoogle Scholar
  • Lee L-F (1983) Generalized econometric models with selectivity. Econometrica 51(2):507–512.CrossrefGoogle Scholar
  • Li Z, Agarwal A (2017) Platform integration and demand spillovers in complementary markets: Evidence from Facebook’s integration of Instagram. Management Sci. 63(10):3438–3458.LinkGoogle Scholar
  • Liang C, Zhan S, Raghu TS (2019) The spillover of spotlight: Platform recommendation in the mobile app market. Inform. Systems Res. 30(4):1296–1318.LinkGoogle Scholar
  • Lueker N, Foerderer J, Heinzl A (2018) Superstar complementors: Does high status discourage innovation in platform ecosystems? DRUID18, Copenhagen, Denmark.Google Scholar
  • Mayrhofer P (2013) Interdependencies in the Discovery and Adoption of Facebook Applications: An Empirical Investigation (Springer Gabler, Wiesbaden, Germany).CrossrefGoogle Scholar
  • McIntyre DP, Srinivasan A (2017) Networks, platforms, and strategy: Emerging views and next steps. Strategic Management J. 38(1):141–160.CrossrefGoogle Scholar
  • Mick DG (1986) Consumer research and semiotics: Exploring the morphology of signs, symbols, and significance. J. Consumer Res. 13(2):196–213.CrossrefGoogle Scholar
  • Park S, Gupta S (2012) Handling endogenous regressors by joint estimation using copulas. Marketing Sci. 31(4):567–586.LinkGoogle Scholar
  • Parker G, Van Alstyne M (2005) Two-sided network effects: A theory of information product design. Management Sci. 51(10):1494–1504.LinkGoogle Scholar
  • Prieger JE (2002) A flexible parametric selection model for non-normal data with application to healthcare usage. J. Appl. Econometrics 17(4):367–392.CrossrefGoogle Scholar
  • Rietveld J, Schilling MA, Bellavitis C (2019) Platform strategy: Managing ecosystem value through selective promotion. Organ. Sci. 30(6):1232–1251.LinkGoogle Scholar
  • Rosenbaum PR, Rubin DB (1985) Constructing a control group using multivariate matched sampling methods that incorporate the propensity score. Amer. Statist. 39(1):33–38.CrossrefGoogle Scholar
  • Sahni NS (2016) Advertising spillovers: Evidence from online field experiments and implications for returns on advertising. J. Marketing Res. 53(4):459–478.CrossrefGoogle Scholar
  • Smith MD (2003) Modelling sample selection using Archimedean copulas. Econom. J. 6(1):99–123.CrossrefGoogle Scholar
  • Song W, Chen J, Li W (2021) Spillover effect of consumer awareness on third parties’ selling strategies and retailers’ platform openness. Inform. Systems Res. 32(1):172–193.LinkGoogle Scholar
  • Sorensen AT (2007) Bestseller lists and product variety. J. Indust. Econom. 55(4):715–738.CrossrefGoogle Scholar
  • Steinfield C, Ellison NB, Lampe C (2008) Social capital, self-esteem, and use of online social network sites: A longitudinal analysis. J. Appl. Developmental Psych. 29(6):434–445.CrossrefGoogle Scholar
  • Sundararajan A (2004) Nonlinear pricing of information goods. Management Sci. 50(12):1660–1673.LinkGoogle Scholar
  • Wareham J, Fox PB, Cano Giner JL (2014) Technology ecosystem governance. Organ. Sci. 25(4):1195–1215.LinkGoogle Scholar
  • Wen W, Zhu F (2019) Threat of platform-owner entry and complementor responses: Evidence from the mobile app market. Strategic Management J. 40(9):1336–1367.Google Scholar
  • Xu J, Forman C, Kim JB, Van Ittersum K (2014) News media channels: Complements or substitutes? Evidence from mobile phone usage. J. Marketing 78(4):97–112.CrossrefGoogle Scholar
  • Yin P-L, Davis JP, Muzyrya Y (2014) Entrepreneurial innovation: Killer apps in the iPhone ecosystem. Amer. Econom. Rev. 104(5):255–259.CrossrefGoogle Scholar
  • Zeithaml VA (1988) Consumer perceptions of price, quality, and value: A means-end model and synthesis of evidence. J. Marketing 52(3):2–22.CrossrefGoogle Scholar
  • Zheng J, Qi Z, Dou Y, Tan Y (2019) How mega is the mega? Exploring the spillover effects of WeChat using graphical model. Inform. Systems Res. 30(4):1343–1362.LinkGoogle Scholar
  • Zhu F, Liu Q (2018) Competing with complementors: An empirical look at Amazon.com. Strategic Management J. 39(10):2618–2642.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.