Managing the Dynamics of Platforms and Ecosystems

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    Network Orchestration: Managing the Scaling of Platform-based Ecosystems
    ( 2023-01-03) Svendsrud, Daniel Stedjan ; Smith, Peter ; Hydle, Katja
    Multi-sided platform-based ecosystems have emerged as an important organizational arrangement and business model that sees the transformation of pipeline economies into network economies. How managers in these ecosystems approach scaling—as a means to grow their firms—is qualitatively different from what is prevalent in pipeline economies. This paper investigates how two platform companies in B2B markets scale their platform offering to users. We find that the type of platform, whether it is an innovation platform or transaction platform, involves different network effects. We show that innovation platforms need direct orchestration due to a lack of network effects, whereas transaction platforms follow a market logic which makes it easier to create network effects without direct interference by management.
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    The Influence of User Feedback on Complementary Innovation in Platform Ecosystems: NLP Evidence on the Value of Multihoming
    ( 2023-01-03) Hoffmann, Philipp ; Shmagina, Veronika ; Halckenhaeusser, André ; Lueker, Nele
    We study how user feedback affects innovation of multihomed applications within and across platform ecosystems. Therefore, we conduct a quantitative NLP based case study. Our sample consists of 10 multihomed applications with more than 325,000 user reviews on Apple’s iOS and Google’s Android platform between January and March 2021. We analyze how user reviews translate into functional feature releases of the selected applications within and across platforms. We report three findings. First, we find that about 61% of the functional feature improvements on both platforms were previously demanded by users in the form of user feedback. Second, we show that user feedback of iOS users is more likely to be incorporated compared to Android users’ feedback. Finally, we observe that about 10% of feature releases are inspired by cross-platform feedback, providing initial evidence that user feedback from multihoming applications might stimulate cross-platform innovation and enhance the applications’ quality and innovativeness.
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    Actor Positioning and Its Implications to Value Co-Creation in SaaS Ecosystems
    ( 2023-01-03) Ruippo, Antti ; Koskinen, Kari ; Rossi, Matti
    Research on platform ecosystems often takes a binary view of the ecosystem and its actors by dividing the actors belonging either to the core or the periphery of the platform. Platform ecosystems tend to be more nuanced, however, and contain a variety of groups of actors with different roles and interests. These different groups of actors seek to occupy and defend particular positions in the ecosystem that enable them to capture the maximum amount of value from the value co-creation occurring in the ecosystem. By studying SaaS ecosystems, this research maps the positions the different actors seek to occupy and the impact these have to the value creation processes and evolution of platform ecosystems. The results further highlight the preferred positions of the different actors and demonstrates how the interests of the actors are not always aligned but may also lead to value co-destruction instead of value co-creation.
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    Supporting Business Model Decision-making in B2B Ecosystems: A Framework for Using System Dynamics
    ( 2023-01-03) Ksouri-Gerwien, Christoph ; Vorbohle, Christian
    Digital technologies have led to new ways of creating value across organizational boundaries within business ecosystems and now increasingly transform existing business models. However, organizations searching for a successful business model in an ecosystem environment are faced with uncertainty. Previous studies have shown that decision-making can be improved systematically with modeling and simulation. We conducted a two-year action design research study with a B2B start-up and developed a framework with a business ecosystem perspective that supports the use of System Dynamics. This research investigates how an organization in a B2B ecosystem can use simulation to decide on a business model while considering the perspective of other ecosystem actors. We contribute to research on business ecosystems and provide a foundation for further improvements of quantitative business model development tools.
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    Introduction to the Minitrack on Managing the Dynamics of Platforms and Ecosystems
    ( 2023-01-03) Huhtamäki, Jukka ; Rothe, Hannes ; Still, Kaisa
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    Optimal Distinctiveness: The Role of Platform Size and Identity
    ( 2023-01-03) Sobota, Vladimir ; Van De Kaa, Geerten ; Van Beers, Cees ; Ortt, Roland J.
    Recent theoretical advances hold that platforms comprise a second strategic dimension next to size, called identity, which describes the platform’s techno-logical and market scope. Letting go of platform size as the main criterion for platform value opens the possibility for platforms to pursue differentiation strategies with a distinct market positioning. The concept of optimal distinctiveness (OD) implies that differentiation can be optimized so that it maximizes performance. In this paper, we draw on recent OD research in and outside of the field of platforms and elaborate on the role of platform size within the distinctiveness framework. We discuss platform size and identity in the context of OD and suggest propositions for future research. The paper contributes to the management of platforms and OD in platform markets by showing how a platform’s distinctiveness strategy may depend on its size. We contribute to platform management across various platform sizes and to research on OD in platform markets.
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    Which Tweets 'Deserve' to be Included in News Stories? Chronemics of Tweet Embedding
    ( 2023-01-03) Mujib, Munif ; Zelenkauskaite, Asta ; Williams, Jake
    The use and selection of user-generated social media content, specifically tweets, as a news source has become an integral part of news production practice. Yet, the mapping and the extent of the nature of the practices in which news outlets integrate social media use is still lacking. This study focuses on the pressures of immediacy on the media ecosystems, i.e., as organizational practices of news outlets that make choices related to social media content integration. By analyzing a large corpora of news outlets that have embedded tweets, this study analyzes tweet embedding practices by specifically focusing on the concept of chronemics, conceptualized here as the time needed to embed tweets. Temporal constraints are particularly pressing for journalistic practices, given the continuous pressures of 24/7 news cycle. We ask two main questions: which types of outlets are quicker to embed tweets, and which types of users’ tweets are more likely to be embedded quickly?
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    Boundary Reinforcement in Multisided Platforms: A Configurational Analysis of External Conditions
    ( 2023-01-03) Akinyemi, John Patrick ; Jarvenpaa, Sirkka ; Ozer, Gorkem Turgut
    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.