Digital platform ecosystems

Digital platforms are an omnipresent phenomenon that challenges incumbents by changing how we consume and provide digital products and services. Whereas traditional firms create value within the boundaries of a company or a supply chain, digital platforms utilize an ecosystem of autonomous agents to co-create value. Scholars from various disciplines, such as economics, technology management, and information systems have taken different perspectives on digital platform ecosystems. In this Fundamentals article, we first synthesize research on digital platforms and digital platform ecosystems to provide a definition that integrates both concepts. Second, we use this definition to explain how different digital platform ecosystems vary according to three core building blocks: (1) platform ownership, (2) value-creating mechanisms, and (3) complementor autonomy. We conclude by giving an outlook on four overarching research areas that connect the building blocks: (1) technical properties and value creation; (2) complementor interaction with the ecosystem; (3) value capture; and (4) the make-or-join decision in digital platform ecosystems.

[1]  Joseph Farrell,et al.  Standardization, Compatibility, and Innovation , 1985 .

[2]  C. Shapiro,et al.  Technology Adoption in the Presence of Network Externalities , 1986, Journal of Political Economy.

[3]  K. Weick,et al.  Loosely Coupled Systems: A Reconceptualization , 1990 .

[4]  Steven C. Wheelwright,et al.  Revolutionizing Product Development: Quantum Leaps in Speed, Efficiency and Quality , 1992 .

[5]  D. Teece.  Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy , 1993 .

[6]  R. Garud,et al.  Changing competitive dynamics in network industries: An exploration of sun microsystems' open systems strategy , 1993 .

[7]  J. F. Moore,et al.  Predators and prey: a new ecology of competition. , 1993, Harvard business review.

[8]  D. Teece.  Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy , 1993 .

[9]  C. Shapiro,et al.  Systems Competition and Network Effects , 1994 .

[10]  R. Garud,et al.  Technological and Organizational Designs for Realizing Economies of Substitution , 1997 .

[11]  Kevin G. Corley,et al.  On The Performance Of Technology-Sourcing Partnerships: The Interaction Between Partner Interdependence And Technology Attributes , 2000 .

[12]  Richard Schmalensee,et al.  Antitrust Issues in Schumpeterian Industries , 2000 .

[13]  Melissa A. Schilling.  Technology Success and Failure in Winner-Take-All Markets: The Impact of Learning Orientation, Timing, and Network Externalities , 2002 .

[14]  J. Rochet,et al.  Platform competition in two sided markets , 2003 .

[15]  A. Gawer,et al.  Platform Leadership How Intel, Microsoft, and Cisco Drive Industry Innovation , 2002 .

[16]  B. Caillaud,et al.  Chicken & Egg: Competition Among Intermediation Service Providers , 2003 .

[17]  Erwin Danneels.  Tight–loose coupling with customers: the enactment of customer orientation , 2003 .

[18]  M. Armstrong.  Competition in Two-Sided Markets ¤ , 2005 .

[19]  Andrei Hagiu.  Pricing and commitment by two‐sided platforms , 2006 .

[20]  Thomas R. Eisenmann,et al.  Opening Platforms: How, When and Why? , 2008 .

[21]  Carliss Y. Baldwin,et al.  The Architecture of Platforms: A Unified View , 2008 .

[22]  Evangelos Katsamakas,et al.  Design and Ownership of Two-Sided Networks: Implications for Internet Platforms , 2008, J. Manag. Inf. Syst..

[23]  Jonathan Zittrain,et al.  Law and technologyThe end of the generative internet , 2009, CACM.

[24]  Witold Abramowicz,et al.  Service-orientation in electronic markets , 2010, Electron. Mark..

[25]  Kalle Lyytinen,et al.  Research Commentary - The New Organizing Logic of Digital Innovation: An Agenda for Information Systems Research , 2010, Inf. Syst. Res..

[26]  Ashley A. Bush,et al.  Platform Evolution: Coevolution of Platform Architecture, Governance, and Environmental Dynamics , 2010 .

[27]  Kalle Lyytinen,et al.  Research Commentary - Digital Infrastructures: The Missing IS Research Agenda , 2010, Inf. Syst. Res..

[28]  Kevin J. Boudreau,et al.  Open Platform Strategies and Innovation: Granting Access vs. Devolving Control , 2010, Manag. Sci..

[29]  Kalle Lyytinen,et al.  Organizing for Innovation in the Digitized World , 2012, Organ. Sci..

[30]  David S. Evans.  Governing Bad Behavior by Users of Multi-Sided Platforms , 2012 .

[31]  Ann Majchrzak,et al.  Technology Affordances and Constraints in Management Information Systems (MIS) , 2012 .

[32]  Kevin J. Boudreau,et al.  Let a Thousand Flowers Bloom? An Early Look at Large Numbers of Software 'Apps' Developers and Patterns of Innovation , 2011, Organ. Sci..

[33]  Carmelo Cennamo,et al.  Platform competition: Strategic trade‐offs in platform markets , 2013 .

[34]  Robin S. Lee.  Vertical Integration and Exclusivity in Platform and Two-Sided Markets , 2013 .

[35]  Henry C. Lucas,et al.  Disruptive technology: How Kodak missed the digital photography revolution , 2009, J. Strateg. Inf. Syst..

[36]  Lisen Selander,et al.  Capability search and redeem across digital ecosystems , 2013, J. Inf. Technol..

[37]  Ola Henfridsson,et al.  Balancing platform control and external contribution in third‐party development: the boundary resources model , 2013, Inf. Syst. J..

[38]  Amrit Tiwana,et al.  Platform Ecosystems: Aligning Architecture, Governance, and Strategy , 2013 .

[39]  Bendik Bygstad,et al.  The Generative Mechanisms of Digital Infrastructure Evolution , 2013, MIS Q..

[40]  A. Gawer,et al.  Industry Platforms and Ecosystem Innovation , 2013 .

[41]  Aimée A. Kane,et al.  One of Us or One of My Friends: How Social Identity and Tie Strength Shape the Creative Generativity of Boundary-Spanning Ties , 2014 .

[42]  A. Gawer.  Bridging differing perspectives on technological platforms: Toward an integrative framework , 2014 .

[43]  Armin Heinzl,et al.  Control versus Generativity: A Complex Adaptive Systems Perspective on Platforms , 2014, ICIS.

[44]  Mark Fichman,et al.  Multihoming Users' Preferences for Two-Sided Exchange Networks , 2014, MIS Q..

[45]  David Gann,et al.  Architectural Leverage: Putting Platforms in Context , 2014 .

[46]  Kalle Lyytinen,et al.  The impact of openness on the market potential of multi-sided platforms: a case study of mobile payment platforms , 2015, J. Inf. Technol..

[47]  Jungsuk Oh,et al.  Value appropriation between the platform provider and app developers in mobile platform mediated networks , 2015, J. Inf. Technol..

[48]  Robert F. Lusch,et al.  Service Innovation: A Service-Dominant Logic Perspective , 2015, MIS Q..

[49]  Amrit Tiwana,et al.  Evolutionary Competition in Platform Ecosystems , 2015, Inf. Syst. Res..

[50]  Youngjin Yoo,et al.  Distributed Tuning of Boundary Resources: The Case of Apple's iOS Service System , 2015, MIS Q..

[51]  Christof Ebert,et al.  DevOps , 2016, IEEE Software.

[52]  Yong Tan,et al.  Investor Platform Choice: Herding, Platform Attributes, and Regulations , 2018, J. Manag. Inf. Syst..

[53]  Helmut Krcmar,et al.  Multiple-Case Analysis on Governance Mechanism of Multi-Sided Platforms , 2016, MKWI.

[54]  Eoin Woods.  Software Architecture in a Changing World , 2016, IEEE Software.

[55]  Barney Tan,et al.  Developing a Leading Digital Multi-sided Platform: Examining IT Affordances and Competitive Actions in Alibaba.com , 2016, Commun. Assoc. Inf. Syst..

[56]  Melissa A. Schilling,et al.  Reload and Relaunch: Value Creation and Value Capture In Platform-Based Markets , 2016 .

[57]  Alexander Benlian,et al.  Effects of Social Interaction Dynamics on Platforms , 2016, J. Manag. Inf. Syst..

[58]  Pooyan Jamshidi,et al.  Microservices Architecture Enables DevOps: Migration to a Cloud-Native Architecture , 2016, IEEE Software.

[59]  Ron Adner,et al.  Ecosystem as Structure , 2017 .

[60]  Shiva Agarwal,et al.  Sustaining Superior Performance in Business Ecosystems: Evidence from Application Software Developers in the iOS and Android Smartphone Ecosystems , 2017, Organ. Sci..

[61]  D. McIntyre,et al.  Networks, platforms, and strategy: Emerging views and next steps , 2017 .

[62]  Xiaoyue Jiang,et al.  Platform Ecosystems: How Developers Invert the Firm , 2016, MIS Q..

[63]  Jeanne W. Ross,et al.  How Big Old Companies Navigate Digital Transformation , 2020, MIS Q. Executive.

[64]  Feng Zhu,et al.  Competing with complementors: An empirical look at Amazon.com , 2018, Strategic Management Journal.

[65]  Rahul Kapoor,et al.  Ecosystems: broadening the locus of value creation , 2018, Journal of Organization Design.

[66]  Kalle Lyytinen,et al.  Exploiting and Defending Open Digital Platforms with Boundary Resources: Android's Five Platform Forks , 2018, Inf. Syst. Res..

[67]  Wei Chen,et al.  Engaging Voluntary Contributions in Online Communities: A Hidden Markov Model , 2017, MIS Q..

[68]  Ola Henfridsson,et al.  Introduction - Platforms and Infrastructures in the Digital Age , 2018, Inf. Syst. Res..

[69]  Geoffrey G. Parker,et al.  Innovation, Openness, and Platform Control , 2018, Manag. Sci..

[70]  Yong Tan,et al.  Investor Platform Choice: Herding, Platform Attributes, and Regulations , 2018, J. Manag. Inf. Syst..

[71]  Hua Ye,et al.  User Service Innovation on Mobile Phone Platforms: Investigating Impacts of Lead Userness, Toolkit Support, and Design Autonomy , 2018, MIS Q..

[72]  D. Teece.  Profiting from innovation in the digital economy: Enabling technologies, standards, and licensing models in the wireless world , 2018, Research Policy.

[73]  Helmut Krcmar,et al.  The Generic Ecosystem and Innovation Patterns of the Digital Transformation in the Financial Industry , 2018, PACIS.

[74]  F. Ducci,et al.  The Google search case in Europe: tying and the single monopoly profit theorem in two-sided markets , 2018, European Journal of Law and Economics.

[75]  Amrit Tiwana,et al.  Platform Synergy: Architectural Origins and Competitive Consequences , 2018, Inf. Syst. Res..

[76]  Helmut Krcmar,et al.  The Generic Blockchain Ecosystem and its Strategic Implications , 2018, AMCIS.

[77]  Constance E. Helfat,et al.  Dynamic and integrative capabilities for profiting from innovation in digital platform-based ecosystems , 2018, Research Policy.

[78]  Mark de Reuver,et al.  The digital platform: a research agenda , 2018, J. Inf. Technol..

[79]  Cheng Zhang,et al.  The Ecosystem of Software Platform: A Study of Asymmetric Cross-Side Network Effects and Platform Governance , 2018, MIS Q..

[80]  A. Gawer,et al.  Towards a Theory of Ecosystems , 2018, Strategic Management Journal.

[81]  Marco Iansiti,et al.  Why Some Platforms Thrive and Others Don't , 2019 .

[82]  Helmut Krcmar,et al.  The emergence of native multi-sided platforms and their influence on incumbents , 2019, Electronic Markets.

[83]  Long Chen,et al.  Success factors and complex dynamics of crowdfunding: An empirical research on Taobao platform in China , 2018, Electronic Markets.

[84]  Mike Wright,et al.  The digital transformation of innovation and entrepreneurship: Progress, challenges and key themes , 2019, Research Policy.

[85]  Chris Forman,et al.  Digital technology adoption and knowledge flows within firms: Can the Internet overcome geographic and technological distance? , 2019, Research Policy.

[86]  Helmut Krcmar,et al.  Value co-creation practices in business-to-business platform ecosystems , 2019, Electronic Markets.

[87]  Helmut Krcmar,et al.  The DevOps Phenomenon , 2019, ACM Queue.

[88]  Armin Heinzl,et al.  Knowledge boundaries in enterprise software platform development: Antecedents and consequences for platform governance , 2019, Inf. Syst. J..

[89]  Helmut Krcmar,et al.  Shifting to the Cloud - How SAP's Partners Cope with the Change , 2019, HICSS.

[90]  Helmut Krcmar,et al.  Research for practice , 2019, Commun. ACM.

[91]  Kari Smolander,et al.  From platform dominance to weakened ownership: how external regulation changed Finnish e-identification , 2019, Electronic Markets.