Abstract
With the advancement of digitization, digital ecosystems are playing an increasingly important role in value creation. The mechanism by which digital ecosystems create value, however, has been generally deemed to be a mixed effect due to various factors. On the basis of signaling theory, this paper explores the effect of information transmission on the value creation capability of a digital ecosystem from two dimensions: the scale and sustainability of value creation. Taking a sample of weekly transaction data from Ethereum during August 2015–August 2018, our research proposes an integrated framework of information transmission in value creating, and discusses the diffusion process of the network effect within the digital ecosystem. As a generally accepted exchange medium, digital currency traffic acts as an observable proxy of information flow in a crypto-digital ecosystem, where the effects of heterogeneity in transaction attributes are filtered. Empirical results show that information transmission positively influences the scale and sustainability of value creation activities in a digital ecosystem by affecting user number and transaction frequency. Further research reveals that user number is the initial driving force of the network effect and a critical factor for the overall ecosystem market capitalization. This research provides a new insight into the design of sustainable value creation mechanisms under digital circumstances.
Highlights
IntroductionMore and more value is being created in digital form [1]. In response to such an innovative trend, platforms, virtual communities and various types of ecosystems, such as business ecosystems, entrepreneurial ecosystems and digital ecosystems, have been competing to invest in digital infrastructure building
In the digitization age, more and more value is being created in digital form [1]
On the basis of signaling theory, we empirically investigated the role of the information transmission mechanism on the scale and sustainability of value creation in a digital ecosystem, identified critical factors and explored how their interaction affected generalized value creation on the ecosystem level
Summary
More and more value is being created in digital form [1]. In response to such an innovative trend, platforms, virtual communities and various types of ecosystems, such as business ecosystems, entrepreneurial ecosystems and digital ecosystems, have been competing to invest in digital infrastructure building. In the digital economy era, information is mostly carried and presented in the form of a certain combination of bits [2], and the quality of service (QoS) that these ecosystems provide critically depends on how competent they are in generating, transmitting and delivering information as required Such competition in the quality of information service to get customers and complementors ‘on board’ [3,4] to some extent generates a positive spillover effect [5,6] to the entire society due to the externalities of information transmission and diffusion processes [7]. The digitization of the whole society is a self-enforcing cycle continually driven by competition among platforms or ecosystem enterprises for relative information advantage. Responses to such an innovative business model from the capital market fully acknowledge its value creation capability. Seven out of the 10 enterprises are of the digital ecosystem kind, and the Apple Company even became the top one in this ranking
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
