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Genres Of Complementary Products In Platform-Based Markets: Changes In Evolutionary Mechanisms By Platform Diffusion Strategies

Author

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  • YUKI INOUE

    (Department of Innovation, Tokyo Institute of Technology, 3-3-6 Shibaura, Minato-ku, Tokyo 108-0023, Japan)

  • MASAHARU TSUJIMOTO

    (Department of Innovation, Tokyo Institute of Technology, 3-3-6 Shibaura, Minato-ku, Tokyo 108-0023, Japan)

Abstract

Platform and complementary products configure platform-based markets. This study focuses on the genres of complementary products in a platform-based market. We examine differences in the influences of mediating factors on the evolutionary mechanisms of genres, based on different diffusion strategies in the Japanese video game sector: Nintendo DS and PlayStation Portable. This study shows that a rapid platform diffusion strategy generates bandwagon effects in the evolution of genres, and, in turn, the excessive evolution of various genres negatively influences the sales distribution of software in the platform-based market, leading to a rapid decline of the platform. Additionally, this rapid decline results in an evolutionary failure of genres at a later stage in the platform’s lifecycle. Thus, we imply that a rapid platform expansion strategy may cause a rapid decline of the platform-based market and may exclude innovations based on undeveloped genres of complementary products.

Suggested Citation

  • Yuki Inoue & Masaharu Tsujimoto, 2018. "Genres Of Complementary Products In Platform-Based Markets: Changes In Evolutionary Mechanisms By Platform Diffusion Strategies," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(01), pages 1-32, January.
    • Handle: RePEc:wsi:ijimxx:v:22:y:2018:i:01:n:s1363919618500044
    DOI: 10.1142/S1363919618500044
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    Citations

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    Cited by:

    1. Yuki Inoue, 2019. "Winner-Takes-All or Co-Evolution among Platform Ecosystems: A Look at the Competitive and Symbiotic Actions of Complementors," Sustainability, MDPI, vol. 11(3), pages 1-25, January.
    2. Veile, Johannes W. & Schmidt, Marie-Christin & Voigt, Kai-Ingo, 2022. "Toward a new era of cooperation: How industrial digital platforms transform business models in Industry 4.0," Journal of Business Research, Elsevier, vol. 143(C), pages 387-405.
    3. Samuel Siu & Yuki Inoue & Masaharu Tsujimoto, 2019. "Erosion of Complement Portfolio Sustainability: Uncovering Adverse Repercussions in Steam’s Refund Policy," JOItmC, MDPI, vol. 5(4), pages 1-29, September.
    4. Yuki Inoue & Takeshi Takenaka & Takami Kasasaku & Tadafumi Tamegai & Ryohei Arai, 2023. "How to design platform ecosystems by intrapreneurs: Implications from action design research on IoT-based platform," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-26, December.
    5. Miremadi, Iman & Khoshbash, Mostafa & Saeedian, MohammadMahdi, 2023. "Fostering generativity in platform ecosystems: How open innovation and complexity interact to influence platform adoption," Research Policy, Elsevier, vol. 52(6).
    6. Haruo Awano & Masaharu Tsujimoto, 2022. "Mechanisms for Business Ecosystem Members to Capture Value through the Strong Network Effect," Sustainability, MDPI, vol. 14(18), pages 1-13, September.
    7. Yuki Inoue & Masataka Hashimoto & Takeshi Takenaka, 2019. "Effectiveness of Ecosystem Strategies for the Sustainability of Marketplace Platform Ecosystems," Sustainability, MDPI, vol. 11(20), pages 1-33, October.
    8. Roma, Paolo & Vasi, Maria, 2019. "Diversification and performance in the mobile app market: The role of the platform ecosystem," Technological Forecasting and Social Change, Elsevier, vol. 147(C), pages 123-139.
    9. Inoue, Yuki, 2021. "Indirect innovation management by platform ecosystem governance and positioning: Toward collective ambidexterity in the ecosystems," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    10. Yuki Inoue & Takeshi Takenaka & Koichi Kurumatani, 2019. "Sustainability of Service Intermediary Platform Ecosystems: Analysis and Simulation of Japanese Hotel Booking Platform-Based Markets," Sustainability, MDPI, vol. 11(17), pages 1-22, August.
    11. Sebastian Spaeth & Sven Niederhöfer, 2022. "Compatibility promotion between platforms: The role of open technology standards and giant platforms," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(4), pages 1891-1915, December.
    12. Julian Marius Müller, 2019. "Antecedents to Digital Platform Usage in Industry 4.0 by Established Manufacturers," Sustainability, MDPI, vol. 11(4), pages 1-23, February.
    13. Haruo Awano & Masaharu Tsujimoto, 2021. "The Mechanisms for Business Ecosystem Members to Capture Part of a Business Ecosystem’s Joint Created Value," Sustainability, MDPI, vol. 13(8), pages 1-20, April.

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