Platform Owners Research Articles

Performance of complementor’s complementary goods on platform ecosystems: the perspective of individual complementors' complementary goods development behavior

AbstractThe purpose of our study was to examine how individual complementors' development behaviors (specifically, diversity- and distinctiveness-oriented development behaviors) impact the performance of complementary goods on the platform. To achieve this, we employed fixed-effects regression analysis and utilized panel data obtained from the free music platform “DOVA.” This study examines two aspects of the performance of complementor’s complementary goods: the highest performance related to the success of the platform ecosystem and the lowest performance related to platform ecosystem sustainment. The findings indicate that a high focus on diversity-oriented development behavior is positively correlated with the complementor's highest performance and negatively correlated with complementor's lowest performance. Additionally, distinctiveness-oriented development behavior also positively correlated with complementor's highest performance. However, low distinctiveness-oriented development behavior is negatively correlated with complementor's lowest performance. We reveal desirable development behaviors for complementary goods related to both content innovation and platform ecosystem sustainability. Based on these understandings, platform owners can target platform governance.

The Regulation and Ways of Using Digital (Information) Technologies to Protect Copyright

Introduction: the author explores the problem of intellectual property protection, and especially various inventions, know-how in production, industrial designs, and the rapid spread of intellectual property objects on the Internet, where their commercial value is reduced or leveled. In this regard, the chosen research topic is of particular interest and social significance. The Internet information and telecommunications network provides its users with a lot of freedom, which unfortunately generates many offenses. However, progress is also going in a positive direction. The latest technologies of the same Industry 4.0 come to the aid of authors, helping them to protect their works. Purpose: to identify gaps in the legal regulation of copyright protection for works on the Internet, to consider the specifics of the copyright protection procedure, as well as to develop scientifically sound recommendations and proposals aimed at filling the gaps in the legislation. Methods: the study was conducted based on general scientific and specific scientific methods. Such general scientific methods as the dialectical method and logical methods of analysis, synthesis, induction, and deduction were applied. The comparative method, which was used to analyze the experience of foreign countries, and the formal legal method, became special research methods. The historical research method was used to study the main characteristics of modern copyright, its problems, and their causes. Results: a number of problems have been identified in the study of blockchain prospects in the field of copyright, as well as in the development of proposals to improve the legislation in terms of depositing copyright objects. The work contains the author’s provisions aimed at regulating the use of blockchain technology by authors and owners of blockchain platforms, which is practically absent today. The work is focused on practical results, namely, the stable and efficient operation of blockchain platforms in the field of copyright. Conclusions: it has been revealed that to fix the rights to objects of property turnover, there are both opportunities and problems of applying machine-readable law at the present stage; electronic signatures, smart contracts, and entering data into registries are used to make transactions.

The impacts of platform owner entry on prospective complementors’ intention to join: Discouraged by deterrent or attracted by good reputation

The impacts of platform owner entry on prospective complementors’ intention to join: Discouraged by deterrent or attracted by good reputation

Steering via algorithmic recommendations

AbstractThis article studies self‐preferencing in algorithmic recommendations on dominant platforms, focusing on Amazon's dual role as platform owner and retailer. We find that products sold by Amazon receive substantially more “Frequently Bought Together” recommendations across popularity deciles. To establish causality, we exploit within‐product variation generated by Amazon stockouts. We find that when Amazon is out of stock, identical products sold by third‐party sellers face an eight‐percentage‐point decrease in the probability of receiving a recommendation. The pattern can be explained by the economic incentives of steering but not explained by consumer preference. Furthermore, the steering lowers recommendation efficiency.

From Clicks to Carts: Examining the Mediating Role of Attachment in the Relationship Between Influencers and Consumer Purchase Intentions on Live Streaming Platforms

Internet celebrities are rapidly reshaping economics and marketing dynamics on online platforms such as live streaming. This trend has made influencers a crucial marketing technique for many businesses. This study focuses on influencers and their characteristics, engaging in a comprehensive discussion of their complex relationships. It hypothesizes that the three key characteristics of celebrity influencers—similarity, professionalism, and interactivity—directly influence attachment and purchase intention. Additionally, the research explores how attachment mediates the relationship between influencer factors and purchase intention on live streaming platforms. A cross-sectional design and statistical analysis were employed, using a sample of 130 online consumers. The results suggest that similarity, professionalism, and interactivity directly effect on purchase intention. However, while professionalism and interactivity have a direct effect on attachment, they do not significantly influence the relationship with similarity. However, when mediated through attachment, similarity gets partially mediated whereas professionalism and interactivity have observed full mediation. The total effect is highest for similarity. Overall, the study found attachment to be a significant mediator among these influencer characteristics. These findings suggest that celebrities, product developers, advertisers, and online platform owners need to prioritize influencer credibility and competency to succeed in online marketing through live streaming platforms. This study provides new insights into marketing approaches, contributing to the field of consumer behaviour research both practically and theoretically.

Pengaruh Relationship Quality terhadap Customer Value Co-Creation pada Sharing Economy Platforms (SEP) Generasi Z di Indonesia

This study aims to obtain the empirical evidence of relationship quality dimension variables that affecting value co-creation between companies (platform owners) and consumers, related to the exchange of goods and services, the exchange of knowledge, resource, and also experience. These things are useful to provide insights for business or platform owners to accelerate growth through a collaborative environment in order to improve the overall value proposition of all parties. This study took Generation Z respondents, namely the generation that born in 1996-2011 (Lanier, 2017). There are still few previous studies related to Sharing Economy Platforms (SEP) that focuses on a particular generation. The selection of Generation Z because they have a behavioral trend that prefers to spend their money to get life experiences such as traveling. Sampling technique is using Purposive Sampling with Smart PLS analysis tool. The results showed that trust and commitment affect value co-creation of users of SEPs in generation Z.

Token-based platform governance

We develop a model to compare the governance of traditional shareholder-owned platforms to that of platforms that issue tokens. A traditional shareholder governance structure leads a platform to extract rents from its users. A platform that issues tokens for its services can mitigate this rent extraction, as rent extraction lowers the platform owners’ token seigniorage revenues. However, this mitigation from issuing “service tokens” is effective only if the platform can commit itself not to dilute the “service token” subsequently. Issuing “hybrid tokens” that bundle claims on the platform’s services and its profits enhances efficiency even absent ex-ante commitment power. Finally, giving users the right to vote on platform policies, by contrast, redistributes surplus but does not necessarily enhance efficiency.

Optimal advertising structure in the presence of a platform owner’s entry

As consumer demand for mobile electronic items (e.g., mobile phones, tablets, or wearables) rises, advertising competition among electronics manufacturers becomes more intense. Moreover, platform owners that offer platforms for electronics manufacturers may use private labels to enter the manufacturers’ market, which further prompts the manufacturers to advertise in response to platform entry. We study how a platform owner’s entry affects advertising and price competition for a strong manufacturer and a weak manufacturer who are differentiated in production costs and advertising efficiency, and reveal the impacts of platform entry and two typical revenue models on the optimal advertising structures of supply chain members in the platform-based market. In the absence of entry, we discover that a relatively larger production cost advantage induces only the strong manufacturer to advertise while a relatively higher advertising efficiency advantage induces only the weak manufacturer to advertise in the wholesale model. In the bundling model, we show that the platform is always beneficial from the advertising of the manufacturer who can generate higher marginal revenue. With entry, our analysis reveals how the production cost of the platform and the differences in advertising efficiency between the manufacturers affect the optimal advertising structure. In particular, we find that as the production cost increases, the platform first prefers only the weak manufacturer to advertise and then both manufacturers to advertise. In practice, our findings have significant managerial implications for platform owners and electronics manufacturers engaged in advertising competition.

The optimal knowledge-sharing strategy for digital platform owners and third-party developers

The optimal knowledge-sharing strategy for digital platform owners and third-party developers

Does Platform Owners’ Entry Suppress Open Source Contributions? Evidence from GitHub Developers

Does Platform Owners’ Entry Suppress Open Source Contributions? Evidence from GitHub Developers

Platform Owners’ Entry and Complementors’ Innovation: the Impact of Platform Evolution

Platform Owners’ Entry and Complementors’ Innovation: the Impact of Platform Evolution

Elite with Elite: Close Cooperation between Platform Owner and Suppliers for Market Expansion

Elite with Elite: Close Cooperation between Platform Owner and Suppliers for Market Expansion

What is the Effect of Digital Platform Capabilities on the Opportunity Set? The Moderating Role of Governance Mechanisms

Abstract In the digital age, certain digital platforms, such as Google Android and Tencent, have experienced remarkable growth. Nevertheless, other digital platforms encounter severe challenges that contribute to their downfall. The development disparities among digital platforms are primarily attributed to the opportunity set, an aspect still underexplored in the existing research. Based on the Chinese context, this study adopts the dynamic capabilities view to investigate how digital platform capabilities, specifically platform integration and reconfiguration capabilities, influence the opportunity set from the perspective of complementors. Additionally, we examine the moderating impact of governance mechanisms, encompassing formal contracts and relational mechanisms, challenging the prevailing notion that formal contracts always benefit platforms. Drawing insights from survey data including 476 complementors across 48 Chinese digital platforms, our findings reveal that the positive relationship between platform integration capability and the opportunity set is strengthened when formal contracts are employed. However, the positive relationship between platform reconfiguration capability and the opportunity set weakens with formal contracts but strengthens with relational mechanisms. Our study enriches the opportunity set research by empirically revealing the formation mechanism of the opportunity set in digital platforms from the dynamic capabilities view. Furthermore, it extends the application of platform governance literature by introducing nuanced perspectives on the boundary conditions of governance mechanisms in the Chinese context. Ultimately, this paper offers valuable practical insights for platform owners in China, guiding them in enhancing their capabilities and crafting effective governance mechanisms. Simultaneously, it provides direction for Chinese complementors to leverage both formal and informal relationships with platform owners, effectively transforming digital platform capabilities into the opportunity set.

Competing with the platform: Complementor positioning and cross‐platform response to entry

AbstractResearch SummaryThis study contrasts traditional entry dynamics with platform owner entry into a complementor market and examines cross‐platform complementor response to competition with the platform. Generalists experience low repositioning cost and are more likely to shift effort away, while specialists focus their effort on the focal platform. We examine Apple's “Files” app entry and find support for our hypotheses: generalists shift effort toward the competing platform, while specialists double down on the focal platform. Moreover, empirically comparing Apple's entry with that of other large firms, we find that only the platform owner elicits a strong complementor response. This article contributes to the competitive and corporate strategy literatures, underscoring how complementor heterogeneity affects cross‐platform allocation of effort when the platform owner becomes a competitor in complementor spaces.Managerial SummaryGiven the growing managerial and regulatory interest in competitive arenas on digital platforms, we analyze how firms respond to competition with the platform owner. We hypothesize that platform‐enabled firms (complementors) with an outside option—those who also operate on a different platform—reposition, while firms only focused on a single platform double down. Examining the case of the “Files” app on Apple's App Store, we find support for these predictions. We also study other large firm entries on App Store (by Microsoft and SanDisk), but do not observe a meaningful response by complementors. We describe how market entry by the platform owner differs from traditional entry and argue stakeholders may benefit from a deeper understanding of the unique nature of competing with a platform.

Truly Modular and Open System Design is Difficult

AbstractIn the United States, major defense acquisition programs must implement a modular open systems approach (MOSA) as required by U.S. law. (Defense Standardization Program, 2016). Some in the defense community have focused on MOSA as a checklist compliance activity. However, designing economically and operationally competitive system platforms that are truly modular is extremely challenging. Many such modular system platform efforts fail to meet early expectations for convenience, cost, and community uptake. Open standards are challenging as well. If a highly successful, stable, well‐documented, appropriate open standard is available for an interface, then leveraging such a standard can be fairly straightforward. However, often there is no obvious or adequate open standard available and the system platform owners have to organize a community to bring such a standard into existence.This paper will review three concrete examples of such MOSA efforts. The three cases cover both commercial and defense applications as well as covering both hardware and software. The two systems that focused on hardware modularity did eventually go into production but did not completely fulfill early expectations for their programs. The software system used an out‐of‐the‐box approach and achieved a best‐in‐class result in terms of economic effectiveness, time to market, and stakeholder satisfaction. This paper will discuss underlying challenges that seem to be common to all such efforts, review the results of the three cases, and offer some simple guidelines for increasing the probability of success for such a program.

Legal Regulation of Digital Platforms and Antimonopoly Control: Application Practice

The article highlights some conflicts and gaps in the legal regulation of the activities of digital platforms, in particular marketplaces. Currently, in the field of e-commerce, a situation has arisen in which digital platforms (marketplaces) have ceased to play the role of exclusive information intermediaries, transmitting information about the product from the seller to the buyer with remote communication between them under sales contracts. In the doctrine of competition law, the classical approach is generally accepted, according to which an economic entity dominating a market may fall under the criteria of abuse of a dominant position. The "Fifth Antimonopoly Package" makes it possible to improve doctrinal approaches to the establishment of abuse of a dominant position by special subjects. The positions of the FAS Russia, which appeared in connection with the need to regulate complex relations to protect competition in commodity markets, where there are signs of “network effects”, have an important role for the exercise by antimonopoly authorities of powers to intersect monopolistic activities in commodity markets and the formation of a uniform approach in law enforcement practice in cases on violation of antitrust laws by owners of transactional digital platforms. New approaches to the application of relevant legal regulation, including in related markets, have been identified based on the results of an analysis of the norms of antimonopoly legislation, legislation on trading activities and specific decisions of the antimonopoly authority related to the application of Article 101 of Federal Law of 26. 07. 2024 No. 135-FZ “On Protection of Competition”.

Prospects for institutionalization of crowdfunding: a developing country perspective

PurposeThis study explores the adoption of crowdfunding in Pakistan, focusing on the challenges and opportunities within its unique entrepreneurial ecosystem. The research aims to provide insights into the regulatory mechanisms, stakeholder engagement and institutional factors influencing crowdfunding adoption.Design/methodology/approachSeventeen semi-structured interviews were conducted using a purposive sampling technique. Data was collected from diverse stakeholders involved in the crowdfunding process including investors, entrepreneurs, platform owners and regulators.FindingsThe study identifies various challenges, including regulatory gaps, investor concerns, platform-related issues and systemic challenges such as political instability and weak institutions. These challenges hinder the effective implementation of crowdfunding in Pakistan. Moreover, the study highlights opportunities for financial inclusion, bridging the gap between investors and entrepreneurs, and leveraging Pakistan’s entrepreneurial landscape for crowdfunding growth. While several challenges were common to both developed and developing countries, the study also identified distinct challenges such as digital literacy, reliance on the undocumented economy, insufficient regulatory frameworks and investor mindset specific to developing countries.Research limitations/implicationsSince crowdfunding is an emerging phenomenon in Pakistan, this study had limitations as no official crowdfunding platform other than the Pakistan National Investor Portal had started operations. Therefore, this study involved only those stakeholders who were involved in designing regulatory sandbox suggestions. The sample size could be increased to include stakeholders from other developing countries in the future. This article, however, provides significant strategic guidance for policymakers in developing a framework to improve financial inclusion in development.Practical implicationsThe study provides critical areas of concern for regulatory authorities for developing appropriate legislation to help overcome the challenges to the institutionalization of crowdfunding. This study also encourages stakeholders like investors and entrepreneurs to participate in crowdfunding while looking at the perspective of other parties.Social implicationsThis research highlights the need for the Pakistani society to be well-informed about alternative investment opportunities, like crowdfunding. The micro, small and medium enterprises (MSME) sector, along with the government, can also explore the benefits of crowdfunding to address their lack of access to capital and enable the inclusion of an informal economy to reduce poverty in a developing country.Originality/valueCrowdfunding is a new phenomenon in Pakistan, and the scope of its application in the MSME sector has not been thoroughly investigated. This study reveals how micro and small firms can use crowdfunding to boost their economic operations by overcoming challenges and taking advantage of fintech (financial technology) to achieve financial inclusion, leading to economic sustainability.

Responding to platform owner moves: A 14‐year qualitative study of four enterprise software complementors

AbstractIntegrating the competition and the cooperation perspectives on value co‐creation in platform ecosystems, this study explores complementor responses to platform owner moves that adversely affect the complementor's positioning. Our primary focus is to discern dynamic patterns of complementor responses and to understand their role in the process of re‐stabilising the complementor's positioning. To this end, we conducted a 14‐year longitudinal study, analysing 21 move‐response instances across four platform partnerships. Our findings reveal three distinct complementor response archetypes: insist, pivot, and detach. Over time, complementors combine these archetypes into three unique response patterns. Through progressive diverging, complementors sidestep platform owner moves by diversifying their offer beyond the focal ecosystem. Although this can entail substantial multi‐homing costs, it reduces dependence on the platform owner and bolsters resilience against future moves. Through adaptive oscillating, complementors use platform owner moves as opportunities to gradually diversify their offer within the focal ecosystem. This stepwise market expansion makes them resilient against future moves, while mitigating costs and efforts related to multi‐homing. Through persistent insisting, complementors can re‐establish their previous positioning, but at the cost of increased dependence on the platform owner, leaving the complementor vulnerable to future moves. We synthesise these findings in our process model of complementor positioning. Emphasising the importance of complementor responses in fostering resilient software ecosystems, this model bears important implications for research on platform governance and platform‐dependent entrepreneurship.

Predicting and interpreting digital platform survival: An interpretable machine learning approach

Despite the substantial economic impact of digital platforms, research on platform risk evaluation has been sparse. In this study, we investigate whether online content can serve as leading indicators of digital platform survival. We employ machine learning techniques to extract features from three types of online content, that is, user generated content, platform generated content, and third party generated content and examine their utilities in predicting platform survival. Using a predictive XGBoost algorithm and data crawled from a leading web portals of digital platforms for online lending in China, we find online content are strong predictors of platform survival. Furthermore, we use casual forest models to reveal the differences among the three type of online content in terms of predictive utility. Interestingly, we find the presence of third-party generated content indicates lower probability of platform survival while the platform with more user generated content has higher chance to survive. The relationship between platform generated contents and platform failure is not significant. Based on the results, we provide practical implications for market managers and platform owners.

How has the COVID-19 pandemic shaped behavior in crowdsourcing? The role of online labor market training

AbstractThe outbreak of the COVID-19 pandemic and the associated lockdown measures have been a shock to market systems worldwide, affecting both the supply and demand of labor. Intensified by this pandemic-driven recession, online labor markets are in many ways at the core of the economic and policy debates about their technological innovation, which could be used as a way of economic reform and recovery. In this work, we focus on crowdsourcing, which is a specific type of online labor. We apply a unique dataset of labor data to investigate the effects of online training, a policy that was provided to requesters by the platform during the COVID-19 period. Our findings suggest that workers indirectly finance on-the-job online training by accepting lower wages during the pandemic. By utilizing a difference-in-difference research design, we also provide causal evidence that online training results in lower job completion time and the probability of being discontinued. Our findings show that both employers and employees in our online labor context reacted to the pandemic by participating in online labor procedures with different risk strategies and labor approaches. Our findings provide key insights for several groups of crowdsourcing stakeholders, including policy-makers, platform owners, hiring managers, and workers. Managerial and practical implications in relation to how online labor markets react to external shocks are discussed.