Paper Number

2229

Paper Type

Complete Research Paper

Abstract

The success of digital platforms depends largely on the innovation contributed by complementors. To manage these innovations, platform owners need to strike a balance between rigorous governance and fostering generativity, which is challenging due to the arm's length relationship with complementors. Recent studies advocate combining strict governance with strategic innovation management, emphasizing the effectiveness of signaling-based strategies. However, they fall short of providing a comprehensive overview of these signals' occurrence, operationalization, and impact. This study explores the gap in the literature on non-formal, signaling-based innovation management strategies that complement established formal governance approaches. A systematic review of 53 studies has led to a collection of eleven signals that platform owners use to influence complementors' innovation behavior. Our findings highlight a range of strategic signaling options by core and platform boundary resources that provide clearer investment directions for complementors and enhance our understanding of dynamic innovation governance in digital ecosystems.

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Jun 14th, 12:00 AM

STIMULATING INNOVATION ON DIGITAL PLATFORMS – A REVIEW OF PLATFORM OWNER SIGNALS

The success of digital platforms depends largely on the innovation contributed by complementors. To manage these innovations, platform owners need to strike a balance between rigorous governance and fostering generativity, which is challenging due to the arm's length relationship with complementors. Recent studies advocate combining strict governance with strategic innovation management, emphasizing the effectiveness of signaling-based strategies. However, they fall short of providing a comprehensive overview of these signals' occurrence, operationalization, and impact. This study explores the gap in the literature on non-formal, signaling-based innovation management strategies that complement established formal governance approaches. A systematic review of 53 studies has led to a collection of eleven signals that platform owners use to influence complementors' innovation behavior. Our findings highlight a range of strategic signaling options by core and platform boundary resources that provide clearer investment directions for complementors and enhance our understanding of dynamic innovation governance in digital ecosystems.

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