COCREATION OF VALUE IN A PLATFORM ECOSYSTEM: THE CASE OF ENTERPRISE SOFTWARE.

Author List: Ceccagnoli, Marco; Forman, Chris; Huang, Peng; Wu, D. J.;
MIS Quarterly, 2012, Volume 36, Issue 1, Page 263-290.
It has been argued that platform technology owners cocreate business value with other firms in their platform ecosystems by encouraging complementary invention and exploiting indirect network effects. In this study, we examine whether participation in an ecosystem partnership improves the business performance of small independent software vendors (ISVs) in the enterprise software industry and how appropriability mechanisms influence the benefits of partnership. By analyzing the partnering activities and performance indicators of a sample of 1,210 small ISVs over the period 1996-2004, we find that joining a major platform owner's platform ecosystem is associated with an increase in sales and a greater likelihood of issuing an initial public offering(IPO). In addition, we show that these impacts are greater when ISVs have greater intellectual property rights or stronger downstream capabilities. This research highlights the value of interoperability between software products, and stresses that value cocreation and appropriation are not mutually exclusive strategies in interfirm collaboration.
Keywords: Platform ecosystem; partnership; business value; sales; IPO; intellectual property rights; downstream capabilities
Algorithm:

List of Topics

#98 0.184 platform platforms dynamics ecosystem greater generation open ecosystems evolution two-sided technologies investigate generations migration services implications interplay disruptive control markets
#143 0.174 value business benefits technology based economic creation related intangible cocreation assessing financial improved key economics assess question created create understanding
#93 0.115 performance results study impact research influence effects data higher efficiency effect significantly findings impacts empirical significant suggest outcomes better positive
#52 0.093 supply chain information suppliers supplier partners relationships integration use chains technology interorganizational sharing systems procurement buyer interfirm coordination enterprises flexibility
#117 0.085 standards interorganizational ios standardization standard systems compatibility effects cooperation firms industry benefits open interoperability key heterogeneous vertical propose vendors collective
#201 0.064 piracy goods digital property intellectual rights protection presence legal consumption music consumers enforcement publisher pirate producers policies copyright provision profits