Abstract:The paper presents the findings from a 3-year single-case study conducted in connection with the International Data Spaces (IDS) initiative. The IDS represents a multi-sided platform (MSP) for secure and trusted data exchange, which is governed by an institutionalized alliance of different stakeholder organizations. The paper delivers insights gained during the early stages of the platform's lifecycle (i.e. the platform design process). More specifically, it provides answers to three research questions, namely… Show more
“…In two-and multisided markets, platform firms operate businesses which act as intermediaries between multiple groups of participants who are looking to benefit from interacting with other participants with complementary needs. While the definition of what constitutes a 'platform' in two-or multi-sided markets varies, two general forms have previously been identified in the literature: two-sided and multi-sided platforms (Otto and Jerke 2019). Whereas two-sided platforms mediate transactions and/or interactions between two groups of users (e.g.…”
Motivating buyers and sellers to join an empty platform is thought to be a key challenge for firms attempting to launch digital platforms in two-sided markets. According to predictions from extant literature, 'no one joins until everyone joins'. The phenomenon is often referred to as the "chicken-and-egg problem". This study investigates the phenomenon in an exploratory multi-case study of ten startup technology firms operating digital platforms in two-sided markets. The study finds that the firms entered their markets using a variety of strategies distinguishable by strategic, relational and temporal factors. A conceptual framework is proposed which distinguishes the firms' strategies along these dimensions. In addition, a cross-case discussion of the dynamics of the firms' strategies is provided. Deductively, the findings contribute to establishing an empirical grounding for predictions from extant literature. Inductively, the findings contribute preliminary managerial implications as well as propositions for further research on entry strategies for digital platforms in two-sided markets.
“…In two-and multisided markets, platform firms operate businesses which act as intermediaries between multiple groups of participants who are looking to benefit from interacting with other participants with complementary needs. While the definition of what constitutes a 'platform' in two-or multi-sided markets varies, two general forms have previously been identified in the literature: two-sided and multi-sided platforms (Otto and Jerke 2019). Whereas two-sided platforms mediate transactions and/or interactions between two groups of users (e.g.…”
Motivating buyers and sellers to join an empty platform is thought to be a key challenge for firms attempting to launch digital platforms in two-sided markets. According to predictions from extant literature, 'no one joins until everyone joins'. The phenomenon is often referred to as the "chicken-and-egg problem". This study investigates the phenomenon in an exploratory multi-case study of ten startup technology firms operating digital platforms in two-sided markets. The study finds that the firms entered their markets using a variety of strategies distinguishable by strategic, relational and temporal factors. A conceptual framework is proposed which distinguishes the firms' strategies along these dimensions. In addition, a cross-case discussion of the dynamics of the firms' strategies is provided. Deductively, the findings contribute to establishing an empirical grounding for predictions from extant literature. Inductively, the findings contribute preliminary managerial implications as well as propositions for further research on entry strategies for digital platforms in two-sided markets.
“…Horizontal strategies also include to establish alliances to orchestrate the platforma clear difference to platforms in digital consumer markets where predominately one keystone player is the orchestrator [37]. Examples of such BtotB alliances include the "Industrial Data Space" consortium or the "Open Automotive Alliance".…”
Section: Resultsmentioning
confidence: 99%
“…However, for industrial ecosystems, we argue that market equilibria exist where multiple competing platforms surrounded by "app" providers (for hardware, software, or service complements) co-exist. These platforms can be orchestrated by a keystone player; however, we expect that often an alliance of several firms will be the orchestrator [37]. Incumbents in such an ecosystem will follow a differentiation strategy [34], offering functionally or regionally specialized solutions while integrating their offerings on the alliance-driven platform.…”
Section: Theoretical and Practical Implicationsmentioning
confidence: 99%
“…We use the context of industrial platformbased BMs for Industry 4.0, 2 without doubt a main competitive driver of our global economy [41]. Such an industrial ecosystem consists of layers of connected physical machines, communication networks, data spaces, and digital services constituting around an emergent new industrial platform [37,40]. Here, formerly isolated companies connect via standardized interfaces and autonomous data exchange [41].…”
Many incumbents have the ambition to become ecosystem leaders when transitioning to platform business models. While most prior research has studied established consumer markets, our study extends the empirical knowledge on ecosystem dynamics with a focus on platform around industrial data. In a longitudinal study, we investigate factors influencing this transition and study in particular how industrial incumbents balance value creation and capture during ecosystem emergence. In this stage, managing openness is a key strategic decision. While openness is required for value creation, the complexity and physicality of the industrial setting hampers value capture. We identify control points to manage the tension between value creation & capture and derive different transition journeys. Lastly, we propose that in industrial markets, multiple platforms can co-exist in the same ecosystem, complementing the established "winner-takes-all" paradigm. Our research identifies situations where incumbents intentionally forfeit a leadership position in favor of joining an alliance-driven ecosystem.
“…While data sharing within an organization is considered established practice, sharing data in interorganizational settings is witnessing a global momentum [5,6]. Digital technologies stimulate novel forms of data-centric collaboration between various actors, leading to the emergence of data ecosystems [7,8], which in turn provide a fertile ground for data-driven innovation, as the collaboration amongst participants fosters access, provision and utilization of distributed data sources [9].…”
Despite being in competitive relations, organizations increasingly engage in data-centric collaborations to utilize access and provision to distributed data sources. Over time, these relations have evolved from dyadic relationships to the emergence of complex ecosystems. These ecosystems are characterized by multiple autonomous organizations that engage in data sharing to leverage data-driven innovation. For value propositions based on data to materialize, the configuration of data governance can provide fundamental control mechanisms that influence the design, dynamics and success of the collaboration. In the context of ecosystems, data governance is considered an under-researched topic. This paper investigates both concepts and identifies the main conceptual characteristics of ecosystem data governance. We develop a taxonomy of ecosystem data governance that comprises eight dimensions and twenty four characteristics to improve the conceptual understanding of data governance in data ecosystems.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.