The Role of Openness and Extension Modularization in Value Capture for Platform-Based Digital Transformation

Digital transformation is radically changing the way companies conduct business and compete in established markets. In particular, a growing number of companies are switching from predominantly product-focused to platform-based business models. However, it remains unclear how these platforms should be designed to enable platform owners to maximize value capture. In this study, we investigated the interactions between platform openness and extension modularization and their influence on value capture in the context of digital transformation. To do so, we combined a case survey strategy with a configurational approach using fuzzy-set Qualitative Comparative Analysis. We found that there is no single condition necessary to achieve a high degree of value capture. Furthermore, our results show the importance of closedness and tight coupling of platforms and their applications. Finally, we confirmed the importance of interface conformance to high value capture. In addition, our results contribute to both theory and practice and provide implications for future research into the role of digital platforms in digital transformation.

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