Platform Strategy: Managing Ecosystem Value Through Selective Promotion of Complements

Published Online:https://doi.org/10.1287/orsc.2019.1290

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
  • Adner R, Zemsky P (2006) A demand‐based perspective on sustainable competitive advantage. Strategic Management J. 27(3):215–239.CrossrefGoogle Scholar
  • Agrawal J, Kamakura WA (1995) The economic worth of celebrity endorsers: An event study analysis. J. Marketing 59(3):56–62.CrossrefGoogle Scholar
  • Ailawadi KL, Harlam BA (2009) Retailer promotion pass-through: A measure, its magnitude, and its determinants. Marketing Sci. 28(4):782–791.LinkGoogle Scholar
  • Ailawadi KL, Beauchamp JP, Donthu N, Gauri DK, Shankar V (2009) Communication and promotion decisions in retailing: A review and directions for future research. J. Retailing 85(1):42–55.CrossrefGoogle Scholar
  • Anderson EG, Parker GG, Tan B (2013) Platform performance investment in the presence of network externalities. Inform. Systems Res. 25(1):152–172.LinkGoogle Scholar
  • Angrist JD, Pischke JS (2008) Mostly Harmless Econometrics: An Empiricist’s Companion (Princeton University Press, Princeton, NJ).CrossrefGoogle Scholar
  • Autor DH (2003) Outsourcing at will: The contribution of unjust dismissal doctrine to the growth of employment outsourcing. J. Labor Econom. 21(1):1–42.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
  • Besley T, Burgess R (2004) Can labor regulation hinder economic performance? Evidence from India. Quart. J. Econom. 119(1):91–134.CrossrefGoogle Scholar
  • Binken JL, Stremersch S (2009) The effect of superstar software on hardware sales in system markets. J. Marketing 73(2):88–104.CrossrefGoogle Scholar
  • Biswas D, Biswas A, Das N (2006) The differential effects of celebrity and expert endorsements on consumer risk perceptions: The role of consumer knowledge, perceived congruency, and product technology orientation. J. Advertising 35(2):17–31.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, Hagiu A (2009) Platform rules: Regulation of an ecosystem by a private actor. Gawer A, ed. Platforms, Markets and Innovation (Edward Elgar, Northampton, MA), 163–191.Google Scholar
  • Boudreau KJ, Jeppesen LB (2015) Unpaid crowd complementors: The platform network effect mirage. Strategic Management J. 36(12):1761–1777.CrossrefGoogle Scholar
  • Brynjolfsson E, Kemerer CK (1996) Network externalities in microcomputer software: An econometric analysis of the spreadsheet market. Management Sci. 42(12):1627–1647.LinkGoogle Scholar
  • Ceccagnoli M, Forman C, Huang P, Wu DJ (2012) Cocreation of values in a platform ecosystem: The case of enterprise software. Management Inform. Systems Quart. 36(1):263–290.CrossrefGoogle Scholar
  • Cennamo C, Santalo J (2013) Platform competition: Strategic trade‐offs in platform markets. Strategic Management J. 34(11):1331–1350.CrossrefGoogle Scholar
  • Cennamo C, Ozalp H, Kretschmer T (2018) Platform architecture and quality tradeoffs of multihoming complements. Inform. Systems Res. 29(2):461–478.LinkGoogle Scholar
  • Clements MT, Ohashi H (2005) Indirect network effects and the product cycle: Video games in the US, 1994-2002. J. Indust. Econom. 53(4):515–542.CrossrefGoogle Scholar
  • Corts KS, Lederman M (2009) Software exclusivity and the scope of indirect network effects in the US home video game market. Internat. J. Indust. Organ. 27(2):121–136.CrossrefGoogle Scholar
  • Dean DH, Biswas A (2001) Third-party organization endorsement of products: An advertising cue affecting consumer prepurchase evaluation of goods and services. J. Advertising 30(4):41–57.CrossrefGoogle Scholar
  • Eckhardt JT (2016) Welcome contributor or no price competitor? The competitive interaction of free and priced technologies. Strategic Management J. 37(4):742–762.CrossrefGoogle Scholar
  • Erdogan BZ (1999) Celebrity endorsement: A literature review. J. Marketing Management 15(4):291–314.CrossrefGoogle Scholar
  • Friedman HH, Termini S, Washington R (1976) The effectiveness of advertisements utilizing four types of endorsers. J. Advertising 5(3):22–24.CrossrefGoogle Scholar
  • Gawer A (2014) Bridging differing perspectives on technological platforms: Toward an integrative framework. Res. Policy 43(7):1239–1249.CrossrefGoogle 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
  • Greenwood B, Wattal S (2017) Show me the way to go home: An empirical investigation of ride sharing and motor vehicle homicides. Management Inform. Systems Quart. 41(1):163–187.CrossrefGoogle Scholar
  • Gretz RT, Basuroy S (2013) Why quality may not always win: The impact of product generation life cycles on quality and network effects in high-tech markets. J. Retailing 89(3):281–300.CrossrefGoogle Scholar
  • Gupta S, Jain DC, Sawhney MS (1999) Modeling the evolution of markets with indirect network externalities: An application to digital television. Marketing Sci. 18(3):396–416.LinkGoogle Scholar
  • Hoetker G (2007) The use of logit and probit models in strategic management research: Critical issues. Strategic Management J. 28(4):331–343.CrossrefGoogle Scholar
  • International Development Group (2011) IDG global forecast update. (August). Report, International Development Group, Arlington, VA.Google Scholar
  • Jacobides MG, Cennamo C, Gawer A (2018) Toward a theory of ecosystems. Strategic Management J. 39(8):2255–2276.CrossrefGoogle Scholar
  • Johns J (2006) Video games production networks: Value capture, power relations and embeddedness. J. Econom. Geography 6(2):151–180.CrossrefGoogle Scholar
  • Kapoor R, Agarwal S (2017) Sustaining superior performance in business ecosystems: Evidence from application software developers in the iOS and Android smartphone ecosystems. Organ. Sci. 28(3):531–551.LinkGoogle Scholar
  • Kumar N, Rajiv S, Jeuland A (2001) Effectiveness of trade promotions: Analyzing the determinants of retailer pass through. Marketing Sci. 20(4):382–404.LinkGoogle Scholar
  • Lal R (1990) Price promotions: Limiting competitive encroachment. Marketing Sci. 9(3):247–262.LinkGoogle Scholar
  • Landsman V, Stremersch S (2011) Multihoming in two-sided markets: An empirical inquiry in the video game console industry. J. Marketing 75(6):39–54.CrossrefGoogle Scholar
  • Lee RS (2013) Vertical integration and exclusivity in platform and two-sided markets. Amer. Econom. Rev. 103(7):2960–3000.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
  • Nair H (2007) Intertemporal price discrimination with forward-looking consumers: Application to the US market for console video-games. Quant. Marketing Econom. 5(3):239–292.CrossrefGoogle Scholar
  • Pancras J, Gauri DK, Talukdar D (2013) Loss leaders and cross-category retailer pass-through: A Bayesian multilevel analysis. J. Retailing 89(2):140–157.CrossrefGoogle 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
  • Pierce L (2009) Big losses in ecosystem niches: How core firm decisions drive complementary product shakeouts. Strategic Management J. 30(3):323–347.CrossrefGoogle Scholar
  • Rietveld J, Eggers JP (2018) Demand heterogeneity and the adoption of platform complements. Organ. Sci. 29(2):304–322.LinkGoogle Scholar
  • Schilling MA (1998) Technological lockout: An integrative model of the economic and strategic factors driving technology success and failure. Acad. Management Rev. 23(2):267–284.CrossrefGoogle Scholar
  • Schilling MA (2003) Technological leapfrogging: Lessons from the US video game console industry. California Management Rev. 45(3):6–32.CrossrefGoogle Scholar
  • Schilling MA (2009) Protecting or diffusing a technology platform: Trade-offs in appropriability, network externalities, and architectural control. Gawer A, ed. Platforms, Markets and Innovation (Edward Elgar, Northampton, MA), 192–218.CrossrefGoogle Scholar
  • Seamans R, Zhu F (2013) Responses to entry in multi-sided markets: The impact of Craigslist on local newspapers. Management Sci. 60(2):476–493.LinkGoogle Scholar
  • Shankar V, Bayus BL (2003) Network effects and competition: An empirical analysis of the home video game industry. Strategic Management J. 24(4):375–384.CrossrefGoogle Scholar
  • Wareham J, Fox PB, Cano Giner JL (2014) Technology ecosystem governance. Organ. Sci. 25(4):1195–1215.LinkGoogle Scholar
  • Wellam D (1998) Not-so-free trade. Supermarket Bus. 54(10):46–48.Google Scholar
  • Wiersema MF, Bowen HP (2009) The use of limited dependent variable techniques in strategy research: Issues and methods. Strategic. Management J. 30(6):679–692.CrossrefGoogle Scholar
  • Yin PL, Davis JP, Muzyrya Y (2014) Entrepreneurial innovation: Killer apps in the iPhone ecosystem. Amer. Econom. Rev. 104(5):255–259.CrossrefGoogle Scholar
  • Yoffie DB, Kwak M (2006) With friends like these: The art of managing complementors. Harvard Bus. Rev. 84(9):88–98.Google Scholar
  • Zelner BA (2009) Using simulation to interpret results from logit, probit, and other nonlinear models. Strategic Management J. 30(12):1335–1348.CrossrefGoogle 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.