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Complementor-side Ecology and its Implications on Platform Strategy

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Title:Complementor-side Ecology and its Implications on Platform Strategy
Authors:Lee, Sungho
Bae, Sung Joo
Rhee, Mooweon
Park, Minah
Keywords:Managing Platforms and Ecosystems
platform strategy, complementor, organizational ecology, niche width
Date Issued:03 Jan 2018
Abstract:Understanding the complementor behavior and its implication is the key to understanding platform dynamics. By using theoretical guides of organizational ecology, this study analyzed complementor's various niche strategies and their implications. Using the data from game industry, our study shows that the initial entry strategy to increase the survival rate is to concentrate on a specific game genre. However, as the platform grows, the relationship between complementor platform niche width and the survival rate shows inverted-U shape. From the perspective of the platform owner, it would be very difficult to provide various kinds of services especially at the early stage of developing the platform if all the complementors become genre-specific. If many complementors choose to provide services to multiple platforms, it would be very difficult for the platform owner to provide services different from other platforms. We provide interpretations on various strategic implications of complementor dynamics to the platform strategy.
Pages/Duration:10 pages
Rights:Attribution-NonCommercial-NoDerivatives 4.0 International
Appears in Collections: Managing Platforms and Ecosystems

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