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Platform Competition: A Systematic and Interdisciplinary Review of the Literature
In: Journal of Management, 47(6): 1528–1563.
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Working paper
On Top of The Game? The Double-Edged Sword of Incorporating Social Features into Freemium Products
In: Strategic Management Journal, 43(6): 1182-1207
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Working paper
Demand Heterogeneity in Platform Markets: Implications for Complementors
In: Organization science, Band 29, Heft 2, S. 304-322
ISSN: 1526-5455
While two-sided platforms (e.g., video game consoles) depend on complements (e.g., games) for their success, the success of complements is also influenced by platform-level dynamics. Research suggests that greater platform adoption benefits complements by providing more potential users, but this assumes that platform adopters are homogeneous. We build on extensive research exploring the heterogeneity between early and late platform adopters to identify counterintuitive dynamics for complements. Complements launched early in a platform's life cycle face an audience entirely of early platform adopters, whereas later-launching complements face a mixed audience of both early and late adopters, and we argue that differences in preferences and behavior between early and late adopters affect whether complements will succeed and which types will be most successful. We explore these dynamics in the context of the console video game industry using a unique data set of 2,918 video games released in the United Kingdom from 2000 to 2007. We show that despite the increase in the potential user pool as the platform evolves, video games launched later in the platform life cycle realize lower sales than those launched earlier. While increased competition explains part of this effect, we show substantial evidence consistent with our theory of preference differences between early and late adopters. This includes the finding that the negative effect is stronger for novel games and that the gap between popular and less popular complements widens as later adopters move into the platform, consistent with late adopters being risk averse and seeking to avoid purchasing mistakes. The e-companion is available at https://doi.org/10.1287/orsc.2017.1183 .
Within-Firm Variation in the Liability of Foreignness: A Demand-Based Perspective
In: Forthcoming at Journal of Management
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Market Orchestrators: The Effects of Certification on Platforms and Their Complementors
In: Strategy Science, 6(3), pp. 244–264
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Working paper
Platform Strategy: Managing Ecosystem Value Through Selective Promotion of Complements
In: Organization science, Band 30, Heft 6, S. 1232-1251
ISSN: 1526-5455
Platform sponsors typically have both incentive and opportunity to manage the overall value of their ecosystems. Through selective promotion, a platform sponsor can reward successful complements, bring attention to underappreciated complements, and influence the consumer's perception of the ecosystem's depth and breadth. It can use promotion to induce and reward loyalty of powerful complement producers, and it can time such promotion to both boost sales during slow periods and reduce competitive interactions between complements. We develop arguments about whether and when a platform sponsor will selectively promote individual complements and test these arguments on data from the console video game industry in the United Kingdom. We find that platform sponsors do not simply promote "best in class" complements; they strategically invest in complements in ways that address complex trade-offs in ecosystem value. Our arguments and results build significant new theory that helps us understand how a platform sponsor orchestrates value creation in the overall ecosystem.
Platform Strategy: Managing Ecosystem Value Through Selective Promotion of Complements
In: Organization Science, 30(6), pp. 1125-1393.
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The Effects of Prior Co-Investments on the Performance of VC Syndicates: A Relational Agency Perspective
In: Strategic Entrepreneurship Journal, 14(2), 240-264
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Coevolution of Platform Dominance and Governance Strategies: Effects on Complementor Performance Outcomes
In: Academy of Management Discoveries, 6(3), 488-513
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Working paper
New horizons or a strategic mirage? Artist-led-distribution versus alliance strategy in the video game industry
In: Research Policy, Band 42, Heft 4, S. 954-964