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Value ecosystem models for social media services

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  • Kim, Dohoon

Abstract

This study presents the architecture as well as the SDPs (Service Delivery Processes) of two ecosystems—CVE (Collaborative Value Ecosystem) and LVE (Leadership Value Ecosystem)—for social media services, and analyzes and compares these two ecosystems. CVE and LVE respectively represent the traditional social media service ecosystem and a new (future) ecosystem governed by service platforms. In our stylized model, the architecture of the social media platform ecosystem (to be briefly referred as the ‘value ecosystem’) is composed of user group, SP (Service Platform) and CP (Contents Provider). Specifically, users are uniformly populated over [0,Δ], where Δ represents the span of users' preference for the social media services. We also emphasize the differences in the SDP and resulting service provisioning of the value ecosystems. Accordingly, the roles of players are different in two ecosystems. Multi-stage game models are employed for analyses and comparisons of players' optimal behaviors and the value-creation capability in each value ecosystem. In particular, the latter is measured by the amount of information created in the respective ecosystem. Our first analysis indicates that the user group is segmentized differently across the value ecosystems. Subsequently, following analysis presents equilibrium strategies of SP and CP. According to our analyses and experiments, it is more likely that the overall level of the social media services in LVE is higher than that in CVE. However, the total amount of information created throughout CVE is larger than that in LVE. These findings imply that the leadership of SP may boost or constrain the value ecosystem. We also demonstrate that the user diversity measured by Δ is another key parameter for value creation in these ecosystems.

Suggested Citation

  • Kim, Dohoon, 2016. "Value ecosystem models for social media services," Technological Forecasting and Social Change, Elsevier, vol. 107(C), pages 13-27.
    • Handle: RePEc:eee:tefoso:v:107:y:2016:i:c:p:13-27
    DOI: 10.1016/j.techfore.2016.03.010
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    2. Osei-Frimpong, Kofi & McLean, Graeme, 2018. "Examining online social brand engagement: A social presence theory perspective," Technological Forecasting and Social Change, Elsevier, vol. 128(C), pages 10-21.

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