Platform scope and value creation in digital platforms

Editors

Cennamo, Carmelo; Dagnino, Giovanni; Zhu, Feng

Description

Digital platform ecosystems are at the core of value creation in the digital era and a vital part of the digital strategy of firms. The generative nature of digital technologies makes it difficult for a platform sponsor to conceptualize and produce all potential product variations. Hence, co-creating value with autonomous third-party complementors is imperative. However, platform sponsors face unique uncertainties in enabling such value co-creation as often both the complementors and their value-enhancing complements are unknown ex ante. We demonstrate how platform scope, encompassing three elements - platform technology, sponsor, and market scope - helps the platform sponsor manage uncertainties in value co-creation by attracting the right set of complementors and fostering a predictable set of complements. We discuss the implications of the scope choices for value co-creation and digital strategy of firms and highlight key areas for future research.

Publication Date

1-4-2023

DOI

10.4337/9781800378902.00014

ISBN

978-1800378896; 978-1800378902

Publisher

Edward Elgar Publishing

Keywords

Platform scope, Digital platforms ecosystems, Generative nature of digital technologies, Value co-creation with complementors, Value-enhancing complements, Platform sponsors

Source Link URL

https://doi.org/10.4337/9781800378902.00014

discipline

Business; Technology and Innovation; Business; Strategic Management Policy

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