Prof. Youngjin Yoo (Case Western Reserve University)

Programm

Datum: 28. Mai 2019

Zeit: 12.00 - 13.30 Uhr

Ort: Ludwigstraße 28 (VG), 211b

Titel: The Limit of Multi-sided Digital Platform

Abstract

Digitalization is fundamentally changing the competitive landscape. Multi-sided digital platform, among others, have emerged as the most powerful concept that explains the power of digital technology. Yet, there is considerable confusion about precisely what is multi-sided digital platform, and how it works. In this paper, we aim to tackle these issues by proposing an integrative theoretical perspective that views digital platforms as configurable organizing logics that a firm can pursue in a digital economy—spurred by the layered modular architecture of digital technology. The theoretical departure point of our argument is that digital innovation entails “new combinations of physical and digital components”. These combinations could be accomplished through different configurations of organizing logics as determined by the firm and influenced by different ecosystem actors, such as customers and complementors. Specifically, we develop a series of theoretical model on value creation and capture in multi-sided digital platform that deals with multiple forms of values (generative vs. network), costs (product vs. transaction), and third-party complements (physical vs. digital). We then further explore differential impacts of different types of third-party complementary resources (digital vs. physical) on value creation, and how their economic impacts change depending on the point of binding (deferred vs. early). We conclude by looking at the dynamic implication of our model, by explicitly considering the size of the network, identify potential saturation point, where firms might find deferred and temporary binding with third-party complements will create net negative network value.