Success factors of platform leadership in web 2.0 service business

Abstract

The purpose of this study is to investigate the critical success factors of platform leadership in the Web 2.0 based service business environment. Because of the lack of theoretical foundation for this topic, we adopted relevant theory and case study analyses. Representative Web 2.0 firms which have developed platform leadership were chosen and analyzed on the basis of previous research on platform strategy through spider web analysis. This study shows that Web 2.0 firms such as Google, Flickr, and Salesforce.com differ in their competitive capabilities for platform leadership. The result of this research suggests that platform leadership in the Web 2.0 era depends on five interdependent dimensions: innovation ability, connectivity, complementarities, efficiency, and network effects.

Innovation and imitation effects in Metaverse service adoption

“…However, once users learn and are involved in using the service, their imitation effect becomes stronger. Thus, one can induce that Twitter and Googlemap's strong network effects surpass their innovation effects (Lee and Lim 2009;Lee et al 2010), thus have a lower innovation effect than Secondlife. Therefore, the following hypothesis is proposed:…”

Value creation in software service platforms

“…Theoretical value creation frameworks for e-businesses and, in particular, for service platforms have been proposed in recent literature [10,11,12,13,14,15,16,56,58]. A study of value creation in the context of e-business was conducted by Amit and Zott (2001) [10].…”

“…User-created value was discussed by Lee et al (2010) [11], and research on value transformation in mobile service ecosystems was performed by Smedlund (2012) [12]. However, an evaluation of the effects of platform value distributions to its stakeholders, which is important for any business decision, cannot be performed with these frameworks.…”

“…If this can be achieved, service platforms can reach a large number of users and developers very fast. An example of this is the rise of the social network platform Facebook [5,10,11,12]. Another study addressed the presence of direct and indirect utilities in the context of services and mobile app stores [18].…”

An integrative research framework for the online social network service

“…Fourth, Lee et al (2010) recently suggest that developing OSN platform leadership in a certain market creates ''a competitive advantage and enables the firm to enjoy enormous financial benefits by leveraging its core competence'' and platform leadership is one of the most important success factors in the OSN service. Lee et al (2010) further indicate that platform leadership in the OSN service ''depends on five interdependent dimensions: innovation ability, connectivity, complementarities, efficiency, and network effects'' and firms create platform leadership by leverage the five dimensions in different ways. The future study of OSN should examine various OSN platform leadership strategies in different business contexts or markets.…”