Networks, platforms, and strategy: Emerging views and next steps
Abstract
Research summary : A substantial and burgeoning body of research has described the influence of platform‐mediated networks in a wide variety of settings, whereby users and complementors desire compatibility on a common platform. In this review, we outline extant views of these dynamics from the industrial organization ( IO) economics, technology management, and strategic management perspectives. Using this review as a foundation, we propose a future research agenda in this domain that focuses the on the relative influence of network effects and platform quality in competitive outcomes, drivers of indirect network effects, the nature and attributes of complementors, and leveraging complementor dynamics for competitive advantage . Managerial summary : In many industries, such as social networks and video games, consumers place greater value on products with a large network of other users and a large variety of complementary products. Such “network effects” offer lucrative opportunities for firms that can leverage these dynamics to create dominant technology platforms. This article reviews current perspectives on network effects and the emergence of platforms, and offers several areas of future consideration for optimal strategies in these settings . Copyright © 2016 John Wiley & Sons, Ltd.
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Significant research gaps persist in explaining the emergence of a nascent digital platform and its progression into a wide-spanning DPE.
“Significant research gaps persist foremost in explaining the emergence of a nascent digital platform and its progression into a wide-spanning DPE.”
From Digital platform ecosystems in flux: From proprietary digital platforms to wide-spanning ecosystems (2023) · cites this paper as McIntyre & Srinivasan, 2017
Re-occurring patterns and temporal dimensions of DPE emergence are relatively unexplored.
“Particularly re-occurring patterns and temporal dimensions of emergence continue to be relatively unexplored.”
From Digital platform ecosystems in flux: From proprietary digital platforms to wide-spanning ecosystems (2023) · cites this paper as McIntyre & Srinivasan, 2017
Interactions with boundary resources are often subject to standards, which can be either industry-induced or defined by the focal platform firm itself.
“These interactions are often subject to standards, which can be either industry-induced or defined by the focal platform firm itself (Jones et al., 2021;McIntyre & Srinivasan, 2017).”
From Digital platform ecosystems in flux: From proprietary digital platforms to wide-spanning ecosystems (2023) · cites this paper as McIntyre & Srinivasan, 2017
DPEs undergo stages of creation, growth, persistence, and decline.
“Like technology-based organizations (Kazanjian, 1988), DPEs undergo stages of creation, growth, persistence, and decline (McIntyre & Srinivasan, 2017;van de Ven & Poole, 1995).”
From Digital platform ecosystems in flux: From proprietary digital platforms to wide-spanning ecosystems (2023) · cites this paper as McIntyre & Srinivasan, 2017
Network effects can, to a certain extent, be created or altered in favor of firms, countering the predominant view of treating them as exogenous industry attributes.
“Studies argue that network effects can, to a certain extent, be created or altered in favor of firms, and counters the pre-dominant view of treating them as exogenous industry attributes (McIntyre & Srinivasan, 2017;McIntyre & Subramaniam, 2009).”
From Digital platform ecosystems in flux: From proprietary digital platforms to wide-spanning ecosystems (2023) · cites this paper as McIntyre & Srinivasan, 2017
Open standards foster higher levels of complementor participation, potentially leading to a greater variety of complements.
“Open standards foster higher levels of complementor participation, potentially leading to a greater variety of complements.”
From Digital platform ecosystems in flux: From proprietary digital platforms to wide-spanning ecosystems (2023) · cites this paper as McIntyre & Srinivasan, 2017
Boundary resources rely on a suitable platform architecture and standards enabling future complementors to reuse components and to generate additional value.
“Boundary resources rely on a suitable platform architecture (Cennamo et al., 2018;Tiwana, 2014) and standards (McIntyre & Srinivasan, 2017) enabling future complementors to reuse components and to generate additional value.”
From Digital platform ecosystems in flux: From proprietary digital platforms to wide-spanning ecosystems (2023) · cites this paper as McIntyre & Srinivasan, 2017
Proprietary standards give the focal platform firm more control and may act as entry barriers for future complementors and competitors.
“Proprietary standards, however, give the focal platform firm more control and may act as entry barriers for future complementors and competitors (McIntyre & Srinivasan, 2017).”
From Digital platform ecosystems in flux: From proprietary digital platforms to wide-spanning ecosystems (2023) · cites this paper as McIntyre & Srinivasan, 2017
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“Taking up recent calls for greater research attention to complementors (McIntyre & Srinivasan, 2017; Yoo et al., 2012), this study investigates the inhibiting and facilitating factors for complementor multihoming in the context of platform ecosystems.”
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- Authors
- McIntyre, D. P., & Srinivasan, A.
- Affiliations
- Providence College (US)
- Corresponding author
- McIntyre, David P.
- ORCID
- Srinivasan, Arati
- Venue
- Strategic Management Journal
- Publisher
- Wiley
- Published
- 2016-11-17
- Volume
- 38
- Issue
- 1
- Pages
- 141-160
- ISSN
- 0143-2095 (ISSN-L)
- 1097-0266
- OpenAlex
- W2531864566
- Cited by
- 1,109
- References
- 111
- Citations by year
- 2026: 120 · 2025: 151 · 2024: 142 · 2023: 139 · 2022: 139 · 2021: 142 · 2020: 121 · 2019: 76 · 2018: 62 · 2017: 11 · 2016: 4 · 2012: 2
- FWCI
- 122.66
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Strategic Management Journal (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Strategy and Management › Digital Platforms and Economics
- Social Sciences › Business, Management and Accounting › Strategy and Management › Business Strategy and Innovation
- Social Sciences › Business, Management and Accounting › Strategy and Management › Innovation and Knowledge Management
- Keywords
- network effects, platform quality, complementors, indirect network effects, competitive advantage, platform strategy, industrial organization economics, technology management, strategic management, social networks, video games
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