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Digital platform-based ecosystems: The evolution of collaboration and competition between incumbent producers and entrant platforms

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  • Cozzolino, Alessio
  • Corbo, Leonardo
  • Aversa, Paolo

Abstract

The rise of the Internet has seen traditional incumbent producers challenged by competition from digital entrant platforms. It is unclear, however, how those two types of actors—which are in competition but also mutually dependent—can co-exist in the new platform-based ecosystem. This paper sheds light on that pivotal phenomenon by connecting the traditional literature on incumbent adaptation with the growing conversation on digital platform-based ecosystems. Through a qualitative longitudinal (2005–2019) study of the global digital advertising ecosystem, we examine how incumbent producers pivot between competitive and cooperative strategies in response to digital entrant platforms. Our analysis reveals a process characterized by three sequential phases: (1) selective cooperation, (2) allied competition, and (3) selective coopetition. Those phases show how switching between different multi-level strategies spanning market segments, products, and technological components represents a viable solution for incumbent producers adapting in the face of entrant platforms.

Suggested Citation

  • Cozzolino, Alessio & Corbo, Leonardo & Aversa, Paolo, 2021. "Digital platform-based ecosystems: The evolution of collaboration and competition between incumbent producers and entrant platforms," Journal of Business Research, Elsevier, vol. 126(C), pages 385-400.
    • Handle: RePEc:eee:jbrese:v:126:y:2021:i:c:p:385-400
    DOI: 10.1016/j.jbusres.2020.12.058
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    Cited by:

    1. Jie Gao & Shu Liu & Zhijian Li, 2021. "Cooperative Evolution of China’s Excellent Innovative Research Groups from the Perspective of Innovation Ecosystem: Taking an “Environmental Biogeochemistry” Research Innovation Group as a Case Study," IJERPH, MDPI, vol. 18(23), pages 1-15, November.
    2. Ruokolainen, Jari & Nätti, Satu & Juutinen, Milla & Puustinen, Juha & Holm, Anu & Vehkaoja, Antti & Nieminen, Hannu, 2023. "Digital healthcare platform ecosystem design: A case study of an ecosystem for Parkinson's disease patients," Technovation, Elsevier, vol. 120(C).
    3. Nguyen, Phong Thanh & Nguyen, Linh Thi My, 2022. "Understanding platform market value through decentralization governance — An integrative model from signaling and mechanism design theory," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    4. Corbo, Leonardo & Kraus, Sascha & Vlačić, Božidar & Dabić, Marina & Caputo, Andrea & Pellegrini, Massimiliano M., 2023. "Coopetition and innovation: A review and research agenda," Technovation, Elsevier, vol. 122(C).
    5. Gladys Maquera & Bruno B. F. da Costa & Óscar Mendoza & Raúl A. Salinas & Assed N. Haddad, 2022. "Intelligent Digital Platform for Community-Based Rural Tourism—A Novel Concept Development in Peru," Sustainability, MDPI, vol. 14(13), pages 1-18, June.
    6. Evgeny Popov & Anna Veretennikova & Sergey Fedoreev, 2022. "The Model of OTC Securities Market Transformation in the Context of Asset Tokenization," Mathematics, MDPI, vol. 10(19), pages 1-16, September.
    7. Sergey V. Khmura & Vilena A. Yakimova, 2023. "Crowdfunding platforms in Russia: Methodological tools for agents’ investment decision-making," Journal of New Economy, Ural State University of Economics, vol. 24(3), pages 46-73, October.
    8. Peruchi, Diego Falcão & de Jesus Pacheco, Diego Augusto & Todeschini, Bruna Villa & ten Caten, Carla Schwengber, 2022. "Moving towards digital platforms revolution? Antecedents, determinants and conceptual framework for offline B2B networks," Journal of Business Research, Elsevier, vol. 142(C), pages 344-363.
    9. Xie, Qiuhao & Gao, Ying & Xia, Nini & Zhang, Shuibo & Tao, Guowu, 2023. "Coopetition and organizational performance outcomes: A meta-analysis of the main and moderator effects," Journal of Business Research, Elsevier, vol. 154(C).
    10. Annosi, Maria Carmela & Capo, Francesca & Appio, Francesco Paolo & Bedetti, Ivan, 2023. "Unveiling micro-foundations of digital transformation: Cognitive models, routines, and organizational structures in agri-food SMEs," Technological Forecasting and Social Change, Elsevier, vol. 197(C).
    11. Maximilian Julius Krome & Ulrich Pidun, 2023. "Conceptualization of research themes and directions in business ecosystem strategies: a systematic literature review," Management Review Quarterly, Springer, vol. 73(2), pages 873-920, June.
    12. Rainer Alt, 2021. "Electronic Markets on platform complexity," Electronic Markets, Springer;IIM University of St. Gallen, vol. 31(4), pages 737-742, December.
    13. Anlan Chen & Yong Lin & Marcello Mariani & Yongyi Shou & Yufeng Zhang, 2023. "Entrepreneurial growth in digital business ecosystems: an integrated framework blending the knowledge-based view of the firm and business ecosystems," The Journal of Technology Transfer, Springer, vol. 48(5), pages 1628-1653, October.
    14. Newaz, Md Tarique & Chandna, Vallari & Dass, Mayukh & Arnett, Dennis, 2023. "Using R-A theory and the optimal distinctiveness perspective to understand the strategic marketing approaches used by platform-based organizations: The cases of Facebook and Twitter in digital ecosyst," Journal of Business Research, Elsevier, vol. 167(C).
    15. Riquelme-Medina, Marta & Stevenson, Mark & Barrales-Molina, Vanesa & Llorens-Montes, Francisco Javier, 2022. "Coopetition in business Ecosystems: The key role of absorptive capacity and supply chain agility," Journal of Business Research, Elsevier, vol. 146(C), pages 464-476.
    16. Vilena A. Yakimova & Svetlana V. Pankova, 2023. "The Influence of Digital Environment Factors on the Development of Entrepreneurial Ecosystems in Russian Regions," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 22(3), pages 600-629.
    17. Guangping Xu & Guangyuan Hou & Jinshan Zhang, 2022. "Digital Sustainable Entrepreneurship: A Digital Capability Perspective through Digital Innovation Orientation for Social and Environmental Value Creation," Sustainability, MDPI, vol. 14(18), pages 1-24, September.
    18. Rijswijk, Kelly & de Vries, Jasper R. & Klerkx, Laurens & Turner, James A., 2023. "The enabling and constraining connections between trust and digitalisation in incumbent value chains," Technological Forecasting and Social Change, Elsevier, vol. 186(PA).
    19. Clauss, Thomas & Ritala, Paavo, 2023. "Network governance institutionalization: Creating mutual value by harnessing and avoiding conflicts in interorganizational networks," Journal of Business Research, Elsevier, vol. 163(C).

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