Abstract
With the rapid progress of digital technology and new business models’ development, the platform ecosystem has not only penetrated every sector in society but also revealed various problems. Platform governance researchers have highlighted its significance, but failed to adequately consider ecosystem participants’ behaviour. This paper aims to explore platform governance’s effects on enterprises’ behaviour in a multiorganisational platform ecosystem context. The tripartite evolutionary game is chosen to construct a mathematical model that integrates the government, platform organisation, and internal enterprises to analyse formal and informal governance’s influence on enterprises’ behaviour in the platform ecosystem. It was discovered that both formal and informal governance can decrease internal enterprises’ opportunistic behaviours. Furthermore, formal governance has stronger effects than informal governance, although informal governance’s effects are more stable. Additionally, self-organisation in the platform ecosystem is another important area of focus. This paper enriches an understanding of platform ecosystems while formulating insights relevant in using platform governance to develop small and medium-sized enterprises.
Highlights
More than four billion people are currently connected to the Internet, and this number is expected to increase to 70% of the world’s population in 2020 [1]. e Internet can provide some companies with a way to experience the rise of platform [2, 3], an increasingly innovative communications channel
Importance [15], as the platform ecosystem can be perceived as a multiplatform metaorganisation—or a collection of organisations and individuals—with a common vision for the platform’s prosperity [16, 17]. e ecosystem concept highlights the nature of the interorganisational network, collaborations, and competition among its participants, and its high interdependence and ability to evolve with external environmental changes [18,19,20]. e platform ecosystem consists of multiple actors with joint value and coevolution relationships [8, 21], including stakeholders such as the platform organisation, government, small and mediumsized enterprises (SMEs), customers, research and development institutions, universities, financial institutions, and their intermediaries [22]
A vast majority of platform organisations are driven by commercial interests, and commercial interests are typically prioritised over social values [23]
Summary
More than four billion people are currently connected to the Internet, and this number is expected to increase to 70% of the world’s population in 2020 [1]. e Internet can provide some companies with a way to experience the rise of platform [2, 3], an increasingly innovative communications channel. One is formal or government-based, such as market contracts, intellectual property, and other legally binding agreements used as a basis for collective action and decision-making [28] Another type of governance mechanism is informal or platform-based and depends on mutual trust, agreed codes of conduct, beliefs in a shared vision, and similar cultures [10]. In the platform ecosystem context, platform organisations must create conditions to incentivise and influence the internal enterprises to achieve their desired results [33] This informal or platform-based governance fundamentally differs from the formal or government-based model. An ecosystem may include many complementors, which requires more cost-effective governance mechanisms [41], such as government regulations, market or intellectual property contracts, and other legally binding agreements As a result, both formal or government-based and informal or platform-based governance must be considered in the platform ecosystem context. We accomplish this through a tripartite evolutionary game to analyse the behaviour among ecosystem participants
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