Session 407

Platform and Ecosystem Emergence

Track C

Date: Tuesday, September 23, 2014


Time: 11:00 – 12:15


Room: Bruselas

Session Chair:

  • Llewellyn Thomas, Abu Dhabi School of Management

Title: Drivers of Ecosystem Emergence


  • Llewellyn Thomas, Abu Dhabi School of Management

Abstract: This paper seeks to contribute insight on the drivers regulating ecosystem emergence. Taking an institutional approach to ecosystems, we review three theories that are salient to understanding institutional emergence: dominant design theory, social movement theory, and institutional entrepreneurship theory. We draw on these theories to identify and discuss four key drivers of ecosystem emergence: (1) resource drivers, (2) technological drivers, (3) institutional drivers, and (4) contextual drivers. We propose that the lens offered by these four drivers makes it possible to understand and theorize about processes of ecosystem emergence, as well as informing managerial practice through guiding entrepreneurs’ attention to salient issues as they plan ecosystem strategies.

Title: From Decanter to Bottleneck? How Industry Evolution and Governance Inseparability Shape Value Migration in Ecosystems


  • Bilgehan Uzunca, Utrecht University
  • Dmitry Sharapov, Imperial College London
  • Richard Tee, LUISS Guido Carli

Abstract: This paper uses insights from the literatures on industry evolution and governance inseparability to complement extant work considering ecosystems from an industry architecture perspective. Focusing on the organization that strives to create an ecosystem, we argue that governance arrangements agreed with other parties in the nascent stages of ecosystem development limit the ability of the ecosystem leader to capture a greater share of value from its key markets as these grow and mature. The addition of industry evolution and governance inseparability considerations into the industry architectures framework allows us to explain why ARM, a firm whose processor designs are dominant in mobile devices such as smartphones and tablets, captures relatively little of the value generated by the ecosystem which it created.

Title: Linkage between Industry Platform Implementation, Environmental Factors, and Network Effects: Evidence from the ICT Industry


  • Chung-Lin Tsai, University of Cambridge
  • David Probert, University of Cambridge

Abstract: The industry platform concept offers an approach for firms to create network effects in multi-sided markets. However, the industrial environment is changing rapidly, and this confronts platform owners with an adaption challenge. There is relatively little research focusing on exploring linkage between industry platform implementation, environmental factors and network effects. Thus, this study intends to contribute to this area. To bridge that research gap, this study adopts the case-study method to capture insights from multiple cases, together with selecting the ICT industry as the research area. The results suggest that platform owners, who aim to create network effects, have to implement suitable platform architecture design and control mechanisms to accommodate changes caused by the key environmental factors, namely customers, complementary firms, competitors and technological improvements.

Title: Why Do Platforms Fail? Looking Beyond the Installed Base and Complementarities


  • Hakan Ozalp, LMU Munich
  • Carmelo Cennamo, Bocconi University

Abstract: In this conceptual work, we ask the question: why do platforms fail despite early available complements and user base? Addressing this question, we studied the whole history of the video game industry, which shows the introduction of different platform generations and several failures of platforms pioneering the new generation. We find that the gap in understanding the failures of platforms lies in issues with managing the platform ecosystem related to technological aspects at two levels: between the new generation of platform technology and the incumbent (cross-generation technology issues) and at the different stages of the new generation technology life cycle (new generation technology evolution issues). Failure was due to challenges arisen for complementors (video game developers) in moving to new generation technology.

All Sessions in Track C...

Sun: 15:45 – 17:00
Session 406: Theoretical Studies of Platform Strategies
Mon: 11:00 – 12:15
Session 405: Multi-Sided Platform Strategies
Tue: 11:00 – 12:15
Session 407: Platform and Ecosystem Emergence
Tue: 15:30 – 16:45
Session 452: Competitive Dynamics and Strategy in Platform-Based Markets

Strategic Management Society