ABSTRACT
The flexibility offered by the combination of platform and enabling ecosystems allows multiple competing and collaborating organizations from different industries to achieve rapid innovations. This article highlights key technical and business model attributes of the platform and how these can be exploited by the platform leader for achieving improved performance with limited coordination overhead. Research shows that only a few platforms are managed effectively; as it involves balancing conflicting demands related to the platform owner’s interest and overall health of the ecosystems. We discuss the key governance challenges for a sustainable platform leadership strategy that leads to benefits for the platform leader as well as for the ecosystem partners. Research shows that an effective platform governance i.e. decision rights and accountability to encourage desirable behavior in the use of the platform, addresses the above challenges effectively. This article goes on to identify different types of control mechanisms used in the context of platform ecosystem. While doing so, we highlight the important contextual differences related to the application of control mechanism in platform-centric ecosystems. Unlike other inter-organizational partnership (i.e. outsourced software development); ecosystem leaders do not have formal authority over a large number of application developers and other partners (Mukhopadhyay et al., 2016a). We conclude by proposing several complementary research questions for better understanding of the control–governance dimensions of platform ecosystem business models.
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Sandip Mukhopadhyay
Sandip Mukhopadhyay is an associate professor in IMT, Ghaziabad, Delhi, India. Prior to joining academia, Sandip has worked 20 years in telecommunication and high technology industry with a number of organizations including IBM, Ericsson, Reliance, and Siemens. He has received his PhD in management from MDI (Management Development Institute), Gurgaon and MBA from Indian Institute of Management, Calcutta, India. His research interests include business analytics, business model for digital service innovation, mobile payment, digital platform, and ecosystems.
Harry Bouwman is an information systems professor at Åbo Akademi University, Turku, as well as an associate professor at Information & Communication Group, Engineering Systems and Services, Faculty Technology, Policy and Management, Delft University of Technology, The Netherlands. His research focuses on strategy, business models, and enterprise architecture; on Mobile/IoT and Ind 4.0 applications, as well as context of use. He is an experienced researcher and has published 18 books, more than 150 academic peer-reviewed journal papers and over 60 book chapters. He serves as a senior (managing) editor for amongst others, Telematics & Informatics, and Electronic Markets. He has extensive experience in large (European FP7 and H2020) projects.