Input control and its signalling effects for complementors' intention to join digital platforms

2023 | Information Systems Journal | Citations: 2

Authors: Adam, Martin; Croitor, Evgheni; Werner, Dominick; Benlian, Alexander; Wiener, Martin

Abstract: Existing information systems (IS) research on platform control has largely focus ... Expand

Abstract: Existing information systems (IS) research on platform control has largely focused on examining how input control (i.e., the mechanisms used to control platform access) affects complementors' intentions and behaviours after their decision to join a digital platform. Yet, our understanding of how input control is perceived before this decision and how such perceptions influence prospective complementors' intention to join a platform is still nascent. In this regard, our study views input control as a salient signal that shapes prospective complementors' expected benefits and costs (i.e., their performance and effort expectancy), and ultimately their decision to join a digital platform. Drawing on signalling theory and the antecedent-benefit-cost (ABC) framework, we conducted a randomized online experiment in the context of donation-based crowdfunding. The experiment results offer empirical support for this view by showing that input control has distinct and complex signalling effects for prospective complementors. In particular, our findings reveal curvilinear and competing signalling effects, with perceived input control increasing both performance expectancy (at a decreasing rate) and effort expectancy (at an increasing rate). Also, we find that performance expectancy linearly increases prospective complementors' intention to join a platform, whereas effort expectancy linearly decreases their intention to do so. These findings imply that the overall relationship between perceived input control and intention to join follows an inverted U-shape curve, which means that neither a low nor a high, but a moderate degree of perceived input control maximizes prospective complementors' intention to join. In sum, the results of our study provide novel and important insights into the signalling role that perceived input control plays in shaping prospective complementors' decision to join a digital platform. Collapse

Topics: digital platform crowdsourcing crowdfunding behavioral intention digital ecosystem

Methods: experiment mediation analysis survey survey design theory development

Theories: signaling theory

Value Creation Tradeoff in Business Ecosystems: Leveraging Complementarities While Managing Interdependencies

2023 | Organization Science | Citations: 0

Authors: Agarwal, Shiva; Kapoor, Rahul

Abstract: Complementary assets play an important role in shaping an innovation’s commercia ... Expand

Abstract: Complementary assets play an important role in shaping an innovation’s commercialization success. In this paper, we broaden the locus of complementarities to examine the role of complementary technologies residing in the business ecosystems that are becoming an important source of value creation for innovating firms. We argue that, on one hand, complementary technologies help innovations create more value for their users. On the other hand, they can also limit the focal innovation’s value creation by exposing them to performance bottlenecks as the underlying technological architecture of the ecosystem evolves. We further extend the notion of specialization of complementary assets to ecosystems by considering complementary technologies that are specialized to a focal ecosystem and those that are available across multiple ecosystems. We highlight that, although the complementary technologies that are specialized to an ecosystem facilitate greater value creation, they are more likely to subject the focal innovation to performance bottlenecks. Evidence from 244,034 apps launched by software developers for Apple’s iPhone ecosystem during 2008–2015 offers strong support for our framework. In summary, the study sheds light on the value creation tradeoff for firms innovating in business ecosystems—the opportunities associated with leveraging complementarities and the challenges associated with managing technological interdependencies. Funding: S. Agarwal was funded by the McCombs School of Business at The University of Texas at Austin [Research Excellence Grant]. Collapse

Topics: mobile application innovation management value creation Apple iPhone iOS

Methods: statistical hypothesis test instrumental variables estimation cross sectional research proportional hazards model robustness check

Boundary Reinforcement in Multisided Platforms: A Configurational Analysis of External Conditions

2023 | HICSS | Citations: 1

Authors: Akinyemi, John Patrick; Jarvenpaa, Sirkka; Ozer, Gorkem Turgut

Abstract: This article contributes to the discussion on the governance dynamics of platfor ... Expand

Abstract: This article contributes to the discussion on the governance dynamics of platform ecosystems. We take a broad perspective to understand how the environment beyond the platform ecosystem (i.e., external conditions) shapes the actions of the platform and its various actors in reinforcing platform boundaries. Prior work explored how external influences, such as societal norms and national and local regulations, influence platform ecosystems, including external competitive pressures. But studies on the broader set of potential influences from external conditions are lacking; in particular, a study of such conditions and their influence across platforms in light of boundary reinforcement is called for. Boundary reinforcement is critical for the identity and legitimacy of a platform and for longer-term platform sustenance. Using a fuzzy-set qualitative configurational analysis (fsQCA) method with input coded from 271 peer-reviewed research articles covering 29 platforms, we offer a model detailing how external conditions influence a platform's boundary reinforcement actions. Collapse

Topics: digital ecosystem fuzzy logic Upwork software developer legal information system

Methods: literature sample longitudinal research fuzzy set qualitative comparative analysis triangulation

Theories: fuzzy set theory management theory theory of abduction

Strategic Investments for Platform Launch and Ecosystem Growth: A Dynamic Analysis

2023 | Journal of Management Information Systems | Citations: 0

Authors: Anderson Jr., Edward G.; Parker, Geoffrey G.; Tan, Burcu

Abstract: Multi-sided platforms must make decisions on both pricing and engineering invest ... Expand

Abstract: Multi-sided platforms must make decisions on both pricing and engineering investment and must continually adjust them as the platform scales over its lifecycle. Engineering investments can be allocated to features that improve a platform's standalone value, social features to take advantage of same-side network effects, or integration tools and boundary resources to facilitate third-party content creation. Guidance in the academic or practitioner literature is not granular. Moreover, relevant normative economic models that consider externalities are rarely dynamic. Hence, there is a gap in knowledge about how to best balance tradeoffs between different strategic decisions throughout the entire platform lifecycle. To begin to address this gap, we explore normative strategies for coordinating pricing and engineering investment decisions on a continuous basis under different ecosystem conditions. We build a simulation model informed by economics and marketing theory and perform extensive sensitivity analyses on key parameters in different ecosystem scenarios over a multi-period lifecycle. We find that pricing and investment strategies must continuously change to perform optimally. In particular, strategies that are most effective at launch often differ from those that are most effective during scaling as well as those most effective at maturity. We also find that the optimal strategy depends strongly on the monetization model and market aversion to price changes. Lastly, we specifically examine four different industry segments: mobile platforms, social media, the sharing economy, and business-to-business. The results provide evidence that the trajectory of platform pricing and investment strategies should greatly differ depending on industrial context. Collapse

Topics: price management digital platform social media decision making business-to-business

Methods: simulation sensitivity analysis system dynamics optimization model conjoint analysis

Theories: control theory marketing theory

ICT-Based Country-Level Determinants of Social Media Diffusion

2023 | Information Systems Frontiers | Citations: 0

Authors: Arayankalam, Jithesh; Krishnan, Satish

Abstract: There is a broad consensus that social media platforms have become critical tool ... Expand

Abstract: There is a broad consensus that social media platforms have become critical tools for policymakers in achieving various policy objectives in a country. Therefore, an in-depth understanding of the ICT-based country-level determinants of social media diffusion has become necessary. To this end, we propose a government-people-technology (GTP) framework for categorizing the ICT-based country-level determinants of social media diffusion into three dimensions. Using this framework and utilizing archival data from 107 countries, we examine the roles of ICT in the government's vision, ICT law maturity, Internet bandwidth, ICT cost, ICT skill, and capacity to own ICT in influencing social media diffusion. A quantile panel data regression results reveal that ICT in the government's vision, ICT law maturity, Internet bandwidth, and capacity to own ICT were positively associated with social media diffusion. In contrast, ICT cost was negatively associated with it. Thus, by offering a new framework, we contribute to the technology diffusion literature by emphasizing the role of government, people, and supportive technologies in driving social media diffusion at the country level. Collapse

Topics: social media IT investment internet technology IT skill technology diffusion

Methods: longitudinal research regression analysis method post-hoc analysis cross sectional research archival research

Theories: theory of everything

THE DARK SIDE OF DIGITAL PLATFORMS: UNDERSTANDING SMALL AND MEDIUM ENTERPRISES' DEPENDENCE ON THIRD-PARTY PLATFORMS

2023 | European Conference On Information Systems | Citations: 0

Authors: Asadullah, Ahmad; Faik, Isam; Lim, Shi Ying

Abstract: The digital platform business model has evolved and become a dominant form of e ... Expand

Abstract: The digital platform business model has evolved and become a dominant form of economic interaction worldwide. Small and medium enterprises (SMEs) had to shift their business to platforms to survive in this new market. While existing studies show the positive side of SMEs' use of platforms, there has been little research on the dark side of their participation in the platform economy, particularly their high dependence on platforms. We conducted a qualitative study to examine the mechanisms of dependence and its repercussions on SMEs' performance. Our findings suggest that SMEs' dependence on platforms arises from high importance, low discretion, and limited substitutability. We also find that, beyond their dependence on single platforms, SMEs generally become dependent on an oligopolistic system of dominant platforms. This dependence heightens the power asymmetry between platforms and SMEs. We highlight major manifestations of this power asymmetry, including the platform's ability to restrict access to resources and to prioritize different stakeholders' interests in their ecosystem. Collapse

Topics: electronic commerce digital platform business-to-consumer website electronic business

Methods: qualitative interview field study computational algorithm personal interview theory development

Theories: resource dependency theory

DO NEGATIVE EXTERNALITIES AFFECT PLATFORM MEMBERSHIP CONDITIONS? THE IMPACT OF MORAL AND REGULATORY LEGITIMACY ON PLATFORM GOVERNANCE

2023 | European Conference On Information Systems | Citations: 0

Authors: Brandwijk, Noah; Reuver, Mark de

Abstract: When allowing third parties to join their platforms, platform owners run the ri ... Expand

Abstract: When allowing third parties to join their platforms, platform owners run the risk of attracting harmful third-party complements. Existing literature considers that low-quality offerings negatively affect crossside user satisfaction and attractiveness, ultimately harming the platform's reputation and stability. However, recent events show that negative externalities from third-party offerings can also motivate platform sponsors to adapt their membership conditions. Existing platform literature does not explain the underlying theoretical mechanisms. In this paper, we examine why platform sponsors adjust the conditions that govern third parties joining their platforms in response to negative externalities. We apply legitimacy theory to a critical case on a payment transaction platform. We find that negative externalities affect both moral and regulatory legitimacy, which in turn motivate the platform sponsor to adjust the conditions under which third parties may join the platform. Collapse

Topics: platform governance digital ecosystem digital platform user satisfaction network effect

Methods: qualitative interview case study theory development single case study

From Challenges to Solution Pathways for Industrial Data Ecosystems - A Socio-Technical Perspective

2023 | International Conference on Business Informatics | Citations: 0

Authors: Brechtel, Marc; Petrik, Dimitri; Hölzle, Katharina

Abstract: Many industrial firms know that inter-firm data sharing holds tremendous potent ... Expand

Abstract: Many industrial firms know that inter-firm data sharing holds tremendous potential for the creation of new economic value. However, most of them are not yet willing to share data multilaterally for joint value creation. Consequently, they do not participate in so-called data ecosystems. In our study, we address this issue from a socio-technical perspective and apply a two-step qualitative-empirical research design composed of a problem-centered interview study followed by solution-oriented workshops. We have identified and prioritized the perceived challenges and present first solution pathways. We were able to assign respective responsibilities for needed actions to major roles in data ecosystems. Among others, we can show that the core participants, i.e., data owner and data user, and the governance body need to resolve key challenges mostly in a separate but complementary manner to help industrial data ecosystems emerge. Collapse

Topics: digital ecosystem top management support technology adoption cloud computing supply chain management

Methods: qualitative interview case study qualitative coding group interview

Theories: socio technical theory sociotechnical systems theory

Discontinuous Technological Change and Relaxations of Regulatory Restrictions to Achieve Societal Objectives for the Environment, with Focus on IP Protections

2023 | HICSS | Citations: 0

Authors: Clemons, Eric; Schreieck, Maximilian

Abstract: We address cases where improvements in information technology for measurement an ... Expand

Abstract: We address cases where improvements in information technology for measurement and monitoring should result in regulatory relaxation, in contrast with much recent research, which focuses on situations where these improvements should result in increased regulatory restrictions on the actions permitted by large platform operators. We focus specifically on the problem of reducing environmental degradation, and we explore how regulatory restrictions associated with intellectual property (IP) rights should be relaxed in the presence of demonstrable reductions in environmental impact that result from improvements made by parties other than the owners of the IP. We explore how Environmental Impact Merit should be used to compel the owner of the IP to adopt improvements and to compel compensation to the improver. Future research will develop additional examples where regulatory relaxation is appropriate. Collapse

Topics: consumer surplus IS economics innovation management intellectual property business process improvement

Methods: literature sample

Theories: punctuated equilibrium theory

Virtual Collaboration, Organizations and Networks (VCONs)

2023 | HICSS | Citations: 0

Authors: Cogburn, D.; Espinosa, J.; Clark, M.; Nordbäck, E.

Abstract: This minitrack for HICSS-56 highlights the continued importance and growth of g ... Expand

Abstract: This minitrack for HICSS-56 highlights the continued importance and growth of geographically distributed collaboration and telework in organizations and networks. The ongoing global COVID-19 pandemic has greatly accelerated this practice in most private, public, and non-profit organizations and reignited interest in this critically important area of research and practice. The minitrack explores several questions related to virtual collaboration, telework and networks, using a wide variety of research methods and approaches. Collapse

Topics: digital ecosystem remote work IT supported collaboration pandemic JavaScript

Methods: qualitative interview survey literature sample case study