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A constraint on the self: The dual role of prior market reputation in multidimensional differentiation within platform ecosystems

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  • Lee, Jungwon

Abstract

Optimal distinctiveness theory often does not clearly distinguish between external market norms and internal historical baselines. Addressing this issue, this study separates product-level distinctiveness into market-facing differentiation and identity-facing differentiation to examine how prior market reputation shapes these two evaluation processes. Using data on 552,532 tracks from a global music streaming platform, and applying high-dimensional fixed effects and coarsened exact matching, the results reveal a clear evaluative asymmetry. Prior reputation acts as a sociocognitive buffer in two ways: it provides an “innovator’s license” that increases the returns to market-facing deviation, and offers “idiosyncrasy credits” that reduce authenticity penalties from identity-facing deviation. In addition, large stylistic changes by highly reputable actors lead to substantial performance gains. However, these benefits are limited. The advantage of market-facing innovation remains strong in settings shaped by retrospective algorithmic consumption, whereas the buffer for identity-facing deviation is weaker for older products.

Suggested Citation

  • Lee, Jungwon, 2026. "A constraint on the self: The dual role of prior market reputation in multidimensional differentiation within platform ecosystems," Journal of Business Research, Elsevier, vol. 215(C).
    • Handle: RePEc:eee:jbrese:v:215:y:2026:i:c:s0148296326003565
    DOI: 10.1016/j.jbusres.2026.116321
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