IDEAS home Printed from https://ideas.repec.org/a/bla/stratm/v43y2022i3p530-562.html
   My bibliography  Save this article

From proprietary to collective governance: How do platform participation strategies evolve?

Author

Listed:
  • Siobhan O'Mahony
  • Rebecca Karp

Abstract

Research Summary When platform leaders change the rules guiding who can access and control a platform, the strategies of those who create value from the platform can be upended. Little research examines how platform participants adapt their strategies when a platform leader changes the rules governing access and control. We trace how participation with a development platform evolved under four different governance modes with varied access and control conditions. Participation intensity increased as access opened but decreased when platform leadership became unclear. Distributed platform leadership emerged only once the platform was collectively governed. Rather than assume that all firm participation complements a platform, we show how firms guardedly participate with open and collective platforms in ways that can either extend or subvert a platform's vitality. Managerial Summary As firms consider transitioning proprietary products to more open platforms to grow market share and relevance, we suggest that managers consider the concerns of external participants when designing a system to govern a platform. Opening access to a platform alone may be insufficient to stimulate external participants to contribute and make real commitments. Our research shows that open access did not stimulate external participation when platform leadership was not clear. When a structured but collectively determined development and governance process was created, external participants increased their contributions and even took on project leadership roles—distributing leadership of the platform among many firms.

Suggested Citation

  • Siobhan O'Mahony & Rebecca Karp, 2022. "From proprietary to collective governance: How do platform participation strategies evolve?," Strategic Management Journal, Wiley Blackwell, vol. 43(3), pages 530-562, March.
    • Handle: RePEc:bla:stratm:v:43:y:2022:i:3:p:530-562
    DOI: 10.1002/smj.3150
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/smj.3150
    Download Restriction: no
    File URL: https://libkey.io/10.1002/smj.3150?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Lee Fleming & David M. Waguespack, 2007. "Brokerage, Boundary Spanning, and Leadership in Open Innovation Communities," Organization Science, INFORMS, vol. 18(2), pages 165-180, April.
    2. Jonathan Wareham & Paul B. Fox & Josep Lluís Cano Giner, 2014. "Technology Ecosystem Governance," Organization Science, INFORMS, vol. 25(4), pages 1195-1215, August.
    3. David J. TEECE, 2008. "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy," World Scientific Book Chapters, in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 5, pages 67-87, World Scientific Publishing Co. Pte. Ltd..
    4. Timothy F. Bresnahan & Shane Greenstein, 1999. "Technological Competition and the Structure of the Computer Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 47(1), pages 1-40, March.
    5. Williamson, Oliver E, 1979. "Transaction-Cost Economics: The Governance of Contractural Relations," Journal of Law and Economics, University of Chicago Press, vol. 22(2), pages 233-261, October.
    6. Rosenkopf, Lori & Tushman, Michael L, 1998. "The Coevolution of Community Networks and Technology: Lessons from the Flight Simulation Industry," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 7(2), pages 311-346, June.
    7. West, Joel, 2003. "How open is open enough?: Melding proprietary and open source platform strategies," Research Policy, Elsevier, vol. 32(7), pages 1259-1285, July.
    8. Jacobides, Michael G. & Knudsen, Thorbjorn & Augier, Mie, 2006. "Benefiting from innovation: Value creation, value appropriation and the role of industry architectures," Research Policy, Elsevier, vol. 35(8), pages 1200-1221, October.
    9. Michael G. Jacobides & C. Jennifer Tae, 2015. "Kingpins, Bottlenecks, and Value Dynamics Along a Sector," Organization Science, INFORMS, vol. 26(3), pages 889-907, June.
    10. Henkel, Joachim, 2006. "Selective revealing in open innovation processes: The case of embedded Linux," Research Policy, Elsevier, vol. 35(7), pages 953-969, September.
    11. Prasanna Tambe, 2014. "Big Data Investment, Skills, and Firm Value," Management Science, INFORMS, vol. 60(6), pages 1452-1469, June.
    12. Timothy Simcoe, 2014. "Governing the Anticommons: Institutional Design for Standard-Setting Organizations," Innovation Policy and the Economy, University of Chicago Press, vol. 14(1), pages 99-128.
    13. Giovanni Gavetti & Constance E. Helfat & Luigi Marengo, 2017. "Searching, Shaping, and the Quest for Superior Performance," Strategy Science, INFORMS, vol. 2(3), pages 194-209, September.
    14. Rajagopal, 2014. "Organizations and Innovation," Palgrave Macmillan Books, in: Architecting Enterprise, chapter 3, pages 58-86, Palgrave Macmillan.
    15. Rahul Kapoor & Shiva Agarwal, 2017. "Sustaining Superior Performance in Business Ecosystems: Evidence from Application Software Developers in the iOS and Android Smartphone Ecosystems," Organization Science, INFORMS, vol. 28(3), pages 531-551, June.
    16. Gerald C. Kane & Sam Ransbotham, 2016. "Content as Community Regulator: The Recursive Relationship Between Consumption and Contribution in Open Collaboration Communities," Organization Science, INFORMS, vol. 27(5), pages 1258-1274, October.
    17. Gawer, Annabelle, 2014. "Bridging differing perspectives on technological platforms: Toward an integrative framework," Research Policy, Elsevier, vol. 43(7), pages 1239-1249.
    18. Timothy S. Simcoe & Stuart J.H. Graham & Maryann P. Feldman, 2009. "Competing on Standards? Entrepreneurship, Intellectual Property, and Platform Technologies," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 18(3), pages 775-816, September.
    19. Henry Mintzberg & James A. Waters, 1985. "Of strategies, deliberate and emergent," Strategic Management Journal, Wiley Blackwell, vol. 6(3), pages 257-272, July.
    20. Kevin Boudreau, 2010. "Open Platform Strategies and Innovation: Granting Access vs. Devolving Control," Management Science, INFORMS, vol. 56(10), pages 1849-1872, October.
    21. Katz, Michael L & Shapiro, Carl, 1986. "Technology Adoption in the Presence of Network Externalities," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 822-841, August.
    22. Frank Nagle, 2018. "Learning by Contributing: Gaining Competitive Advantage Through Contribution to Crowdsourced Public Goods," Organization Science, INFORMS, vol. 29(4), pages 569-587, August.
    23. Joel West & Siobhan O'mahony, 2008. "The Role of Participation Architecture in Growing Sponsored Open Source Communities," Industry and Innovation, Taylor & Francis Journals, vol. 15(2), pages 145-168.
    24. von Krogh, Georg & Spaeth, Sebastian & Lakhani, Karim R., 2003. "Community, joining, and specialization in open source software innovation: a case study," Research Policy, Elsevier, vol. 32(7), pages 1217-1241, July.
    25. Carliss Y. Baldwin & Kim B. Clark, 2000. "Design Rules, Volume 1: The Power of Modularity," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262024667, December.
    26. Dahlander, Linus & Wallin, Martin W., 2006. "A man on the inside: Unlocking communities as complementary assets," Research Policy, Elsevier, vol. 35(8), pages 1243-1259, October.
    27. Allen, Robert C., 1983. "Collective invention," Journal of Economic Behavior & Organization, Elsevier, vol. 4(1), pages 1-24, March.
    28. Annabelle Gawer & Rebecca Henderson, 2007. "Platform Owner Entry and Innovation in Complementary Markets: Evidence from Intel," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 16(1), pages 1-34, March.
    29. Aija Elina Leiponen, 2008. "Competing Through Cooperation: The Organization of Standard Setting in Wireless Telecommunications," Management Science, INFORMS, vol. 54(11), pages 1904-1919, November.
    30. Sonali K. Shah, 2006. "Motivation, Governance, and the Viability of Hybrid Forms in Open Source Software Development," Management Science, INFORMS, vol. 52(7), pages 1000-1014, July.
    31. Linus Dahlander & Siobhan O'Mahony, 2011. "Progressing to the Center: Coordinating Project Work," Organization Science, INFORMS, vol. 22(4), pages 961-979, August.
    32. Dahlander, Linus & Magnusson, Mats G., 2005. "Relationships between open source software companies and communities: Observations from Nordic firms," Research Policy, Elsevier, vol. 34(4), pages 481-493, May.
    33. Kevin J. Boudreau & Lars B. Jeppesen, 2015. "Unpaid crowd complementors: The platform network effect mirage," Strategic Management Journal, Wiley Blackwell, vol. 36(12), pages 1761-1777, December.
    34. Eric von Hippel & Georg von Krogh, 2003. "Open Source Software and the “Private-Collective” Innovation Model: Issues for Organization Science," Organization Science, INFORMS, vol. 14(2), pages 209-223, April.
    35. Lars Bo Jeppesen & Lars Frederiksen, 2006. "Why Do Users Contribute to Firm-Hosted User Communities? The Case of Computer-Controlled Music Instruments," Organization Science, INFORMS, vol. 17(1), pages 45-63, February.
    36. Youngjin Yoo & Ola Henfridsson & Kalle Lyytinen, 2010. "Research Commentary ---The New Organizing Logic of Digital Innovation: An Agenda for Information Systems Research," Information Systems Research, INFORMS, vol. 21(4), pages 724-735, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Donbesuur, Francis & Zahoor, Nadia & Al-Tabbaa, Omar & Adomako, Samuel & Tarba, Shlomo Y., 2023. "On the performance of platform-based international new ventures: The roles of non-market strategies and managerial competencies," Journal of International Management, Elsevier, vol. 29(2).
    2. Shi, Xianwei & Liang, Xingkun & Luo, Yining, 2023. "Unpacking the intellectual structure of ecosystem research in innovation studies," Research Policy, Elsevier, vol. 52(6).
    3. Xiaoting Lou & Zuping Zhu & Jinkai Liang, 2022. "The Evolution Game Analysis of Platform Ecological Collaborative Governance Considering Collaborative Cultural Context," Sustainability, MDPI, vol. 14(22), pages 1-21, November.
    4. Klaus E. Meyer & Jiatao Li & Keith D. Brouthers & Ruey-Jer ‘‘Bryan’’ Jean, 2023. "International business in the digital age: Global strategies in a world of national institutions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(4), pages 577-598, June.
    5. Pujadas, Roser & Valderrama, Erika & Venters, Will, 2024. "The value and structuring role of web APIs in digital innovation ecosystems: the case of the online travel ecosystem," LSE Research Online Documents on Economics 121118, London School of Economics and Political Science, LSE Library.
    6. Shiu, Jing-Ming & Dallas, Mark P. & Huang, Hui-Hsuan, 2023. "A friend of a friend? Informal authority, social capital, and networks in telecommunications standard-setting organizations," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    7. Brea, Edgar, 2023. "A framework for mapping actor roles and their innovation potential in digital ecosystems," Technovation, Elsevier, vol. 125(C).
    8. Zhu, Weijun & Xie, Jiaping & Xia, Yu & Wei, Lihong & Liang, Ling, 2023. "Getting more third-party participants on board: Optimal pricing and investment decisions in competitive platform ecosystems," European Journal of Operational Research, Elsevier, vol. 307(1), pages 177-192.
    9. Gomes, Leonardo Augusto de Vasconcelos & dos Santos, Matheus Graciani & Facin, Ana Lúcia Figueiredo, 2022. "Uncertainty management in global innovation ecosystems," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
    10. Tobias Kretschmer & Aija Leiponen & Melissa Schilling & Gurneeta Vasudeva, 2022. "Platform ecosystems as meta‐organizations: Implications for platform strategies," Strategic Management Journal, Wiley Blackwell, vol. 43(3), pages 405-424, March.
    11. Jovanovic, Marin & Kostić, Nikola & Sebastian, Ina M. & Sedej, Tomaz, 2022. "Managing a blockchain-based platform ecosystem for industry-wide adoption: The case of TradeLens," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    12. Tao Li & Jianqiang Luo & Kaitong Liang & Chaonan Yi & Lei Ma, 2023. "Synergy of Patent and Open-Source-Driven Sustainable Climate Governance under Green AI: A Case Study of TinyML," Sustainability, MDPI, vol. 15(18), pages 1-21, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shi, Xianwei & Liang, Xingkun & Luo, Yining, 2023. "Unpacking the intellectual structure of ecosystem research in innovation studies," Research Policy, Elsevier, vol. 52(6).
    2. Kimmo Karhu & Robin Gustafsson & Kalle Lyytinen, 2018. "Exploiting and Defending Open Digital Platforms with Boundary Resources: Android’s Five Platform Forks," Information Systems Research, INFORMS, vol. 29(2), pages 479-497, June.
    3. West, Joel & Kuk, George, 2016. "The complementarity of openness: How MakerBot leveraged Thingiverse in 3D printing," Technological Forecasting and Social Change, Elsevier, vol. 102(C), pages 169-181.
    4. Sebastian Spaeth & Georg von Krogh & Fang He, 2015. "Research Note —Perceived Firm Attributes and Intrinsic Motivation in Sponsored Open Source Software Projects," Information Systems Research, INFORMS, vol. 26(1), pages 224-237, March.
    5. Oliver Alexy & Joel West & Helge Klapper & Markus Reitzig, 2018. "Surrendering control to gain advantage: Reconciling openness and the resource‐based view of the firm," Strategic Management Journal, Wiley Blackwell, vol. 39(6), pages 1704-1727, June.
    6. Panos Constantinides & Ola Henfridsson & Geoffrey G. Parker, 2018. "Introduction—Platforms and Infrastructures in the Digital Age," Information Systems Research, INFORMS, vol. 29(2), pages 381-400, June.
    7. Brice Dattée & Oliver Alexy & Erkko Autio, 2018. "Maneuvering in Poor Visibility : How Firms Play the Ecosystem Game when Uncertainty is High," Post-Print hal-02276702, HAL.
    8. Adrián Kovács & Bart Looy & Bruno Cassiman, 2015. "Exploring the scope of open innovation: a bibliometric review of a decade of research," Scientometrics, Springer;Akadémiai Kiadó, vol. 104(3), pages 951-983, September.
    9. Fabian Schueler & Dimitri Petrik, 2022. "Objectives of platform research: A co-citation and systematic literature review analysis," Papers 2202.08822, arXiv.org.
    10. Cenamor, Javier & Frishammar, Johan, 2021. "Openness in platform ecosystems: Innovation strategies for complementary products," Research Policy, Elsevier, vol. 50(1).
    11. Rodolphe Durand & Robert M. Grant & Tammy L. Madsen & David P. McIntyre & Arati Srinivasan, 2017. "Networks, platforms, and strategy: Emerging views and next steps," Strategic Management Journal, Wiley Blackwell, vol. 38(1), pages 141-160, January.
    12. Jiatao Li & Liang Chen & Jingtao Yi & Jiye Mao & Jianwen Liao, 2019. "Ecosystem-specific advantages in international digital commerce," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(9), pages 1448-1463, December.
    13. Hou, Hong & Shi, Yongjiang, 2021. "Ecosystem-as-structure and ecosystem-as-coevolution: A constructive examination," Technovation, Elsevier, vol. 100(C).
    14. Sheen S. Levine & Michael J. Prietula, 2014. "Open Collaboration for Innovation: Principles and Performance," Organization Science, INFORMS, vol. 25(5), pages 1414-1433, October.
    15. Zaggl, Michael A., 2017. "Manipulation of explicit reputation in innovation and knowledge exchange communities: The example of referencing in science," Research Policy, Elsevier, vol. 46(5), pages 970-983.
    16. Carmelo Cennamo & Hakan Ozalp & Tobias Kretschmer, 2018. "Platform Architecture and Quality Trade-offs of Multihoming Complements," Information Systems Research, INFORMS, vol. 29(2), pages 461-478, June.
    17. Cameron D. Miller & Puay Khoon Toh, 2022. "Complementary components and returns from coordination within ecosystems via standard setting," Strategic Management Journal, Wiley Blackwell, vol. 43(3), pages 627-662, March.
    18. David M. Waguespack & Lee Fleming, 2009. "Scanning the Commons? Evidence on the Benefits to Startups Participating in Open Standards Development," Management Science, INFORMS, vol. 55(2), pages 210-223, February.
    19. Kevin Boudreau, 2010. "Open Platform Strategies and Innovation: Granting Access vs. Devolving Control," Management Science, INFORMS, vol. 56(10), pages 1849-1872, October.
    20. Audra Wormald & Sonali K. Shah & Serguey Braguinsky & Rajshree Agarwal, 2023. "Pioneering digital platform ecosystems: The role of aligned capabilities and motives in shaping key choices and performance outcomes," Strategic Management Journal, Wiley Blackwell, vol. 44(7), pages 1653-1697, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:stratm:v:43:y:2022:i:3:p:530-562. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1111/0143-2095 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.