The persistence of platforms: The role of network, platform, and complementor attributes

Abstract

Existing research on digital platforms emphasizes the contexts that enable such platforms – and their sponsoring firms - to emerge and achieve market dominance. However, this body of research has not sufficiently addressed the ability of certain platform sponsors to persist over time, despite the existence of competing platforms or new entrants. Drawing upon research on network effects, competitive dynamics, and complementor interaction, we develop propositions highlighting the role of network, platform, and complementor attributes that facilitate or hinder the persistence of a technology-based platform in the market. In doing so, we conceptualize platform dominance as part of a dynamic process, rather than a static outcome as often characterized by previous literature. Our propositions advance research on digital platform strategy and user networks by examining the factors that enhance the continued viability of a platform, and generates a number of important directions for future research on technology management, innovation, and strategy, as well as for managerial practice in platform-mediated markets.