Start Date
16-8-2018 12:00 AM
Description
Digital platforms facilitate interactions across distinct groups of users, gaining value from the number of users adopting it through network effects. A key concern is how to scale the platform’s user base and services. Although studies detail strategies for scaling a platform’s user base, much emphasis is on platforms that exercise proprietary ownership over core platform components. This paper draws on the notion of value-driven lock-ins to understand how platforms scale in ecosystems where control of core components is distributed across multiple actors. To investigate how platform owners, operationalize value-driven lock-ins in scaling platforms in such contexts, we trace resource configurations that facilitate scaling of service innovation from an open API platform. Our findings suggest that a key focus in establishing value-driven lock-ins involves resource configurations that seek to reduce the cognitive distance between platform owners and distributed actors. Ensuring participation in such ecosystems requires trust aligned with progressive access to services.
Recommended Citation
Ofe, Hosea, "Building a Platform's User-base: An Investigation of Value-driven Lock-ins in Digital Service Innovation" (2018). AMCIS 2018 Proceedings. 24.
https://aisel.aisnet.org/amcis2018/StrategicIT/Presentations/24
Building a Platform's User-base: An Investigation of Value-driven Lock-ins in Digital Service Innovation
Digital platforms facilitate interactions across distinct groups of users, gaining value from the number of users adopting it through network effects. A key concern is how to scale the platform’s user base and services. Although studies detail strategies for scaling a platform’s user base, much emphasis is on platforms that exercise proprietary ownership over core platform components. This paper draws on the notion of value-driven lock-ins to understand how platforms scale in ecosystems where control of core components is distributed across multiple actors. To investigate how platform owners, operationalize value-driven lock-ins in scaling platforms in such contexts, we trace resource configurations that facilitate scaling of service innovation from an open API platform. Our findings suggest that a key focus in establishing value-driven lock-ins involves resource configurations that seek to reduce the cognitive distance between platform owners and distributed actors. Ensuring participation in such ecosystems requires trust aligned with progressive access to services.