Abstract
Despite recent increasing interest in platforms and platform ecosystems, we still know relatively little about the evolution of platform organizations. Conducting a grounded theory-building study on 52 publicly available interviews with platform entrepreneurs, managers, and venture capitalists and 34 review, forum, and analyst articles, we explore the evolution of platform organizations. We develop a theory and a process model showing that the evolution of platform organizations consists of the following elements: platform growth, competition, contextual factors, adaptive behaviors, sustainability, and failure. We contribute to the literature by constructing an evolutionary model of platform organizations, suggesting that the “winner-take-all” assumption should not be taken for granted, illustrating how certain platform companies sustain competitive advantage, and discussing the factors leading to platform failure.
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