Digital Innovation, Entrepreneurship, and New Business Models
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Paper Number
2053
Paper Type
Completed
Description
Platform owners increasingly exert their control over complementors through digital algorithms. A prominent example is the algorithmic management of visibility. When complementors join a platform ecosystem, they must compete for visibility with existing complementors. Recognizing their inherent position of disadvantage, platform owners promote the visibility of new entrants through an algorithmic boost. By adopting the point of view of complementors, we investigate how they can improve their visibility by carrying out competitive actions. Extending competitive repertoire theory, we investigate the role of ecosystem-specific experience and the competitive repertoires configured by complementors in their pursuit of visibility. We assemble a unique dataset from a dominant food delivery aggregator in Europe. The results show that complementors that gain higher levels of ecosystem-specific experience and carry out more aggressive competitive repertoires, maximize their visibility. We also uncover how the impact of implementing competitive actions depends on the level of ecosystem experience.
Recommended Citation
Rodriguez, Joaquin and Piccoli, Gabriele, "The Role of Competitive Actions in Maximizing Visibility When Entering Algorithmically Managed Ecosystems" (2021). ICIS 2021 Proceedings. 14.
https://aisel.aisnet.org/icis2021/dig_innov/dig_innov/14
The Role of Competitive Actions in Maximizing Visibility When Entering Algorithmically Managed Ecosystems
Platform owners increasingly exert their control over complementors through digital algorithms. A prominent example is the algorithmic management of visibility. When complementors join a platform ecosystem, they must compete for visibility with existing complementors. Recognizing their inherent position of disadvantage, platform owners promote the visibility of new entrants through an algorithmic boost. By adopting the point of view of complementors, we investigate how they can improve their visibility by carrying out competitive actions. Extending competitive repertoire theory, we investigate the role of ecosystem-specific experience and the competitive repertoires configured by complementors in their pursuit of visibility. We assemble a unique dataset from a dominant food delivery aggregator in Europe. The results show that complementors that gain higher levels of ecosystem-specific experience and carry out more aggressive competitive repertoires, maximize their visibility. We also uncover how the impact of implementing competitive actions depends on the level of ecosystem experience.
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