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Optimal distinctiveness across different benchmarks: Implications for platform complementors to strategically position new products

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  • Xia, Ji
  • Wang, Jiexiang
  • Hu, Huaguang
  • Liu, Shuang

Abstract

Optimal Distinctiveness theory highlights the tension between similarity and distinctiveness in new product positioning. Despite extensive research, mixed findings on the distinctiveness-performance relationship have prompted further investigation into related factors. We extend the Optimal Distinctiveness literature by examining how this relationship varies across different benchmarks in complex competitive markets, focusing on two positioning benchmarks within digital platforms. We conduct our research on the Steam platform and find two key results. Firstly, we observe an inverted U-shaped relationship between distinctiveness and performance when other complementors were set as the benchmark, while a U-shaped relationship emerges when the platform owner served as the benchmark. Secondly, we find that complementor size cannot offer a legitimacy buffer, but confers competitive advantages. Our research contributes to the Optimal Distinctiveness theory and advances the platform complementor strategy research.

Suggested Citation

  • Xia, Ji & Wang, Jiexiang & Hu, Huaguang & Liu, Shuang, 2024. "Optimal distinctiveness across different benchmarks: Implications for platform complementors to strategically position new products," Journal of Business Research, Elsevier, vol. 183(C).
    • Handle: RePEc:eee:jbrese:v:183:y:2024:i:c:s0148296324003503
    DOI: 10.1016/j.jbusres.2024.114846
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