Technological Coordination of Platform Ecosystems

Abstract

This dissertation considers how digital platforms can effectively scale and sustain long-term growth. Platforms represent a unique strategic setting, as superior performance is strongly dependent on the ability of platform firms to manage and coordinate an ecosystem of complementors who are innovating and providing services on top of the platform. Across the three chapters of my dissertation, I study how platform firms can effectively orchestrate their ecosystems. In the first study, I examine the antecedents of relationship formation between platforms and complementors. I investigate whether attending a temporary gathering—a hackathon—impacts the platform choices of software developers. I provide evidence that hackathons serve as a social forum for the diffusion of platform adoption among attendees. In the second study, I analyze the tension in how value is shared between platforms and complementors. I leverage the introduction of an unexpected platform governance change that negatively impacted the advertising business model for mobile applications on the Apple iOS platform. I consider the consequences of this decision for the platform’s innovation and performance. In the third study, I explore frictions that may arise when a platform is coordinating with complementors. I use proprietary route data from a South African minibus taxi platform to show when and how minibus operators deviate from platform recommendations in response to their external environment. Further research on how platforms coordinate and organize complementors has the potential to significantly advance our understanding of strategy, innovation, and entrepreneurship.