Please use this identifier to cite or link to this item: http://hdl.handle.net/10125/41803

Value-Creation Dynamics in Platform Ecosystem: A Firm Theory Lens

File Size Format  
paper0654.pdf 894.65 kB Adobe PDF View/Open

Item Summary

Title:Value-Creation Dynamics in Platform Ecosystem: A Firm Theory Lens
Authors:Kim, Dohoon
Keywords:Ecosystem
Firm theory
Game model
Multi-sided platform
Value circulation
Date Issued:04 Jan 2017
Abstract:This paper studies platform ecosystems, a novel business entity built upon a platform coordinating the interactions between suppliers and users, particularly in the IT service sectors. Borrowing words from two core firm theories---resource-based view (RBV) and transaction cost view (TCV)---, we propose that the platform ecosystem works at the boundary between “market and hierarchy.” To show this, we develop a conceptual, stylized, dynamic model for the platform ecosystem with typical notions in RBV and TCV: in particular, installed-base, player heterogeneity, and platform’s investment as primary ingredients. Our findings from equilibrium analyses and simulations largely confirm that both RVB and TCV are valid for understanding a platform ecosystem. We, however, also identify some contingencies where RBV is limited, and propose a hypothesis that the platform’ investment is more crucial for fostering an ecosystem. This implies that the platform starts from the point near market and maneuvers the ecosystem toward a hierarchy, utilizing its investment as a driver.
Pages/Duration:10 pages
URI:http://hdl.handle.net/10125/41803
ISBN:978-0-9981331-0-2
DOI:10.24251/HICSS.2017.641
Rights:Attribution-NonCommercial-NoDerivatives 4.0 International
https://creativecommons.org/licenses/by-nc-nd/4.0/
Appears in Collections: Managing Platforms and Ecosystems Minitrack


Please email libraryada-l@lists.hawaii.edu if you need this content in ADA-compliant format.

This item is licensed under a Creative Commons License Creative Commons