When "more" is not better
This article examines the value-creation capacity of intra-platform competition (IPC) and exclusivity; two main strategies platforms use to incentivize, accumulate and extract rent from complementary content resources - complementors. Building on the concept of Â´resource functionalityÂ´ we show that, for enhanced levels of IPC, exclusive complementors have limited functional value and rareness, failing to bring differentiation capacity to the platformÂ´s system. Also, in line with the logic of Â´capability equivalenceÂ´, we show that platformÂ´s differentiation in terms of the composition of complementorsÂ´ portfolio has a U-shaped relationship with platform performance.
|Date of creation:||Jul 2009|
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