Work

From product to platform: How incumbents' assumptions and choices shape their platform strategy

Year: 2023

Type: article

Abstract: Platform ecosystems have attracted a lot of attention as a new way of value creation and capture. In a longitudinal multi-case study, we compare the transformation efforts of two incumbents in the agricultural equipment industry between 2012 and 2021. We identify a set of interdependent choices incumbents make to adapt their model of value creation and capture toward a platform ecosystem. Based on an in-depth comparison, we show that incumbents' assessment of the potential of their product business may lead to distinct platform positioning – the platform as an extension of the legacy business (i.e., product-centric), or a product-independent platform. While our results indicate that both can initiate viable pathways for incumbents in their transition, we find that product-independent and product-centric positioning lead to distinct choice patterns and outcomes at the different levels of the emerging platform ecosystem.

Source: Research Policy

DOI: 10.1016/j.respol.2023.104904

Authors: Marc Van Dyck, Dirk Lüttgens, Kathleen Diener, Frank Piller, Patrick Pollok

Institutions: RWTH Aachen University, Institut für Unternehmenskybernetik

Language: English

Topic: Digital Platforms and Economics

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Industry, innovation and infrastructure

Open Access status: hybrid

Estimated APC paid: $3,710