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Platform Overthrow: uncovering the critical role of functional extension and generic technology
[Allier extension fonctionnelle et généricité technique pour renverser une plateforme]

Author

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  • Maxime Thomas

    (CGS i3 - Centre de Gestion Scientifique i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris sciences et lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique)

  • Pascal Le Masson

    (CGS i3 - Centre de Gestion Scientifique i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris sciences et lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique)

  • Legrand Julien

    (CGS i3 - Centre de Gestion Scientifique i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris sciences et lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique)

  • Benoit Weil

    (CGS i3 - Centre de Gestion Scientifique i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris sciences et lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique)

Abstract

Can a platform leader be challenged and loose its architectural control over its innovation ecosystem? The question seems absurd since theoretical works on modularity and multi-sided markets depict platform competitive landscapes as controlled by a hegemonic platform leader. However, platform history chronicles several cases of leadership shifts for the benefit of firms formerly providing complementary innovations. We coined these situations " platform overthrows ". To bridge the gap between classical optimization models and empirical evidences of platform overthrow, we rely on a design-theory-based model (Legrand et al. 2017) of platform dynamics to generate testable hypothesis. We then test them with a sample of 22 empirical cases of attempts of platform overthrow. Our results indicate that platform overthrows are always built by a challenger that introduces a new functional range in the ecosystem. However, the efforts of the challenger can be ruined if the technology of the platform leader is easily adaptable to the new functional range. Otherwise, the challenger can overthrow its platform leader if it succeeds in designing a technology that can address both the former and the new functions. We conclude by highlighting how studying both technological and functional evolutions can provide a thorough understanding of platform ecosystem dynamics.

Suggested Citation

  • Maxime Thomas & Pascal Le Masson & Legrand Julien & Benoit Weil, 2018. "Platform Overthrow: uncovering the critical role of functional extension and generic technology [Allier extension fonctionnelle et généricité technique pour renverser une plateforme]," Post-Print hal-01833568, HAL.
    • Handle: RePEc:hal:journl:hal-01833568
    Note: View the original document on HAL open archive server: https://hal.science/hal-01833568
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    References listed on IDEAS

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