Disruption in Platform‐Based Ecosystems
Abstract
We study intergenerational platform‐technology transitions as instances of potentially disruptive innovation at the ecosystem level. Examining the launch of 12 platform technologies in the U.S. videogame industry covering three console generations from 1993 until 2010, we show that incumbents introducing next‐generation platform technologies with advanced capabilities increase the challenges of developing complements for the platform technology, steepening complementors’ learning curves and disrupting the very same complementors that platform owners need to thrive in the next‐generation competition. We find that, because of these struggles, platforms with advanced capabilities but high complement‐development challenges show a pattern of defection of complementors toward rival, less challenging platforms. Our study extends mainstream disruptive‐innovation theory to the context of platform‐based ecosystems by offering a systemic view that accounts for disaffection on the part of technology complementors—rather than end users—as the main reason for disruption.
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After emergence is concluded, the DPE is orchestrated and maneuvered through phases of technological change, sustaining its competitive position against other ecosystems or powerful complementors within its own ecosystem.
“After emergence is concluded, the DPE is orchestrated and maneuvered through phases of technological change (Ozalp et al., 2018), sustaining its competitive position against other ecosystems or powerful complementors within its own ecosystem (Zhu & Liu, 2018).”
From Digital platform ecosystems in flux: From proprietary digital platforms to wide-spanning ecosystems (2023) · cites this paper as Ozalp et al., 2018
Complementors may seize an opportunity to challenge the focal platform firms' position during the transition.
“Complementors may, however, seize an opportunity to challenge the focal platform firms' position during the transition (Ozalp et al., 2018).”
From Digital platform ecosystems in flux: From proprietary digital platforms to wide-spanning ecosystems (2023) · cites this paper as Ozalp et al., 2018
Ultimately, the DPE may enter a stage of strategic or technological renewal or even end in decline or obsolescence.
“In addition, ultimately, the DPE may enter a stage of strategic or technological renewal or even end in decline or obsolescence(Ozalp et al., 2018).”
From Digital platform ecosystems in flux: From proprietary digital platforms to wide-spanning ecosystems (2023) · cites this paper as Ozalp et al., 2018
These stages are expected to be induced from significant technological change or through a loss in profitability or growth opportunities.
“These stages are expected to be induced from significant technological change (Cennamo, 2018;Ozalp et al., 2018) or through a loss in profitability or growth opportunities (Zhu & Liu, 2018).”
From Digital platform ecosystems in flux: From proprietary digital platforms to wide-spanning ecosystems (2023) · cites this paper as Ozalp et al., 2018
With certain strategic actions, dominant complementors may affect the distribution of power in the entire ecosystem, causing leverage over other complementors or even the focal platform firm.
“With certain strategic actions, dominant complementors may affect the distribution of power in the entire ecosystem, causing leverage over other complementors or even the focal platform firm (Ozalp et al., 2018).”
From Digital platform ecosystems in flux: From proprietary digital platforms to wide-spanning ecosystems (2023) · cites this paper as Ozalp et al., 2018
The firm maneuvers the DPE through phases of technological change to sustain its competitive position against other ecosystems or powerful complementors within its own ecosystem.
“The firm then maneuvers the DPE through phases of technological change (Ozalp et al., 2018) to sustain its competitive position against other ecosystems or powerful complementors within its own ecosystem (Zhu & Liu, 2018).”
From Digital platform ecosystems in flux: From proprietary digital platforms to wide-spanning ecosystems (2023) · cites this paper as Ozalp et al., 2018
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- Authors
- Ozalp, H., Cennamo, C., & Gawer, A.
- Affiliations
- University of Leeds (GB)
- Corresponding author
- Ozalp, Hakan
- Venue
- Journal of Management Studies
- Publisher
- Wiley
- Published
- 2018-10-16
- Volume
- 55
- Issue
- 7
- Pages
- 1203-1241
- ISSN
- 0022-2380 (ISSN-L)
- 1467-6486
- OpenAlex
- W2799709652
- Cited by
- 223
- References
- 69
- Citations by year
- 2026: 17 · 2025: 25 · 2024: 28 · 2023: 40 · 2022: 32 · 2021: 32 · 2020: 27 · 2019: 19 · 2018: 3
- FWCI
- 33.84
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Journal of Management Studies (publishedVersion)
- White Rose Research Online (University of Leeds, The University of Sheffield, University of York) (acceptedVersion)
- Surrey Research Insight Open Access (The University of Surrey) (submittedVersion)
- Archivio istituzionale della Ricerca - Bocconi (submittedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Strategy and Management › Digital Platforms and Economics
- Social Sciences › Decision Sciences › Management Science and Operations Research › Innovation Diffusion and Forecasting
- Social Sciences › Business, Management and Accounting › Strategy and Management › Innovation and Knowledge Management
- Keywords
- disruptive innovation, platform ecosystems, video game industry, video game consoles, complementors, learning curve, platform capabilities
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