Advanced Search
MyIDEAS: Login

Open Platform Strategies and Innovation: Granting Access vs. Devolving Control

Contents:

Author Info

  • Kevin Boudreau

    ()
    (Department of Strategy and International Management, London Business School, London NW1 4SA, United Kingdom)

Registered author(s):

    Abstract

    This paper studies two fundamentally distinct approaches to opening a technology platform and their different impacts on innovation. One approach is to grant access to a platform and thereby open up markets for complementary components around the platform. Another approach is to give up control over the platform itself. Using data on 21 handheld computing systems (1990-2004), I find that granting greater levels of access to independent hardware developer firms produces up to a fivefold acceleration in the rate of new handheld device development, depending on the precise degree of access and how this policy was implemented. Where operating system platform owners went further to give up control (beyond just granting access to their platforms) the incremental effect on new device development was still positive but an order of magnitude smaller. The evidence from the industry and theoretical arguments both suggest that distinct economic mechanisms were set in motion by these two approaches to opening.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://dx.doi.org/10.1287/mnsc.1100.1215
    Download Restriction: no

    Bibliographic Info

    Article provided by INFORMS in its journal Management Science.

    Volume (Year): 56 (2010)
    Issue (Month): 10 (October)
    Pages: 1849-1872

    as in new window
    Handle: RePEc:inm:ormnsc:v:56:y:2010:i:10:p:1849-1872

    Contact details of provider:
    Postal: 7240 Parkway Drive, Suite 300, Hanover, MD 21076 USA
    Phone: +1-443-757-3500
    Fax: 443-757-3515
    Email:
    Web page: http://www.informs.org/
    More information through EDIRC

    Related research

    Keywords: technical change; systems; open strategies; platforms; complementors; distributed innovation; information technology;

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

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

    Cited by:
    1. Niedermayer, Andras, 2013. "On platforms, incomplete contracts, and open source software," International Journal of Industrial Organization, Elsevier, vol. 31(6), pages 714-722.
    2. Hagiu, Andrei & Jullien, Bruno, 2013. "Search Diversion and Platform Competition," IDEI Working Papers 795, Institut d'Économie Industrielle (IDEI), Toulouse.
    3. Elizabeth J. Altman & Frank Nagle & Michael L. Tushman, 2013. "Innovating without Information Constraints: Organizations, Communities, and Innovation When Information Costs Approach Zero," Harvard Business School Working Papers 14-043, Harvard Business School.
    4. Liliana Proskuryakova & Dirk Meissner & Pavel Rudnik, 2014. "A Policy Perspective On The Russian Technology Platforms," HSE Working papers WP BRP 26/STI/2014, National Research University Higher School of Economics.
    5. Elizabeth J. Altman & Mary Tripsas, . "Product to Platform Transitions: Organizational Identity Implications," Harvard Business School Working Papers 14-045, Harvard Business School.
    6. Timothy Simcoe, 2012. "Standard Setting Committees: Consensus Governance for Shared Technology Platforms," American Economic Review, American Economic Association, vol. 102(1), pages 305-36, February.
    7. Jason P. Davis & Yulia Muzyrya & Pai-Ling Yin, 2014. "Experimentation Strategies and Entrepreneurial Innovation: Inherited Market Differences in the iPhone Ecosystem," Discussion Papers 13-029, Stanford Institute for Economic Policy Research.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:56:y:2010:i:10:p:1849-1872. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc).

    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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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