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The influence of giant platform on content diversity

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  • Lee, Changjun
  • Hwang, Junseok

Abstract

Scholars have studied how giant platforms influence on the innovation ecosystem as platform providers (PPs) has grown in large size because of their unique and necessary position in the ICT ecosystem. To find the influence of giant PPs' market power on diversity of CPs and the role of content diversity in the innovation ecosystem, we modeled the platform ecosystem and examined the effect of a PP's expansion on various outcomes by using a simulation model based on genetic algorithm. Results show that, firstly, a PP's expansion do reduce the internal content diversity, secondly, high content diversity influences on increasing in innovation capacity of the platform ecosystem, thirdly, the ratio of CPs that retain their uniqueness of content is positively correlated with content diversity, and lastly, the users' will to find alternative sources of content aids in the recovery of decreased content diversity. This might contribute for policy makers and stakeholders in the platform ecosystem to understand the overall picture of the industry dynamics and the innovation strategy in ecological perspective.

Suggested Citation

  • Lee, Changjun & Hwang, Junseok, 2018. "The influence of giant platform on content diversity," Technological Forecasting and Social Change, Elsevier, vol. 136(C), pages 157-165.
    • Handle: RePEc:eee:tefoso:v:136:y:2018:i:c:p:157-165
    DOI: 10.1016/j.techfore.2016.11.029
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    Cited by:

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    2. Zhang, Marina Yue & Williamson, Peter, 2021. "The emergence of multiplatform ecosystems: insights from China's mobile payments system in overcoming bottlenecks to reach the mass market," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    3. Pütz, Fabian & Murphy, Finbarr & Mullins, Martin & O'Malley, Lisa, 2019. "Connected automated vehicles and insurance: Analysing future market-structure from a business ecosystem perspective," Technology in Society, Elsevier, vol. 59(C).
    4. Caprotti, Federico & Liu, Dong, 2020. "Emerging platform urbanism in China: Reconfigurations of data, citizenship and materialities," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    5. Roma, Paolo & Vasi, Maria, 2019. "Diversification and performance in the mobile app market: The role of the platform ecosystem," Technological Forecasting and Social Change, Elsevier, vol. 147(C), pages 123-139.
    6. Inoue, Yuki, 2021. "Indirect innovation management by platform ecosystem governance and positioning: Toward collective ambidexterity in the ecosystems," Technological Forecasting and Social Change, Elsevier, vol. 166(C).

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