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In search of complementarities within and across platform ecosystems: Complementors’ relative standing and performance in mobile apps ecosystems

Tavalaei, M. Mahdi and Cennamo, Carmelo (2020) In search of complementarities within and across platform ecosystems: Complementors’ relative standing and performance in mobile apps ecosystems Long Range Planning, 101994.

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Abstract

Firms can benefit immensely from participating in digital platform ecosystems—specifically, from the shared technological assets and market opportunities offered by the platform owner. Yet, while aligning with the platform ecosystem rules, each member must decide whether to specialize in a given platform ecosystem or across multiple platform ecosystems to capture these benefits. We examine two common patterns through which platform ecosystem members (i.e., complementors) specialize within and across platform ecosystems, and the relative impact on their market performance. We look at the high relative standing of the complementary product as a reflection of complementors' specialization in the given product category or platform ecosystem. We then theorize that having products with high relative standing in a single product category and a single platform ecosystem, together, diminishes complementors’ market performance over time. Similarly, high relative standing in multiple platform ecosystems and multiple product categories, at the same time, adversely impacts the market performance. We find supportive evidence for our hypotheses, in a panel dataset of mobile app developers. This paper contributes to the burgeoning stream of research that investigates the trade-offs faced by complementors, suggesting that complementor strategies are more complex than simply trying to maximize market reach.

Item Type: Article
Divisions : Faculty of Arts and Social Sciences > Surrey Business School
Authors :
NameEmailORCID
Tavalaei, M. Mahdim.tavalaei@surrey.ac.uk
Cennamo, Carmelo
Date : 5 April 2020
DOI : 10.1016/j.lrp.2020.101994
Copyright Disclaimer : © 2019. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/
Uncontrolled Keywords : Platform ecosystem; Digital platform; Complementors; Specialization; Mobile app developer
Depositing User : Clive Harris
Date Deposited : 06 May 2020 13:21
Last Modified : 06 May 2020 13:21
URI: http://epubs.surrey.ac.uk/id/eprint/855960

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