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Paper Number
1464
Paper Type
Complete
Description
High-growth ambitions are typically vital in platform markets. Yet, it is increasingly clear that the time window to occupy a novel platform market before it becomes saturated is surprisingly short. To this end, a differentiation strategy based on distinctive positioning across markets is increasingly prominent for new entrants to be competitive in early saturated markets. In the literature, two types of such tactics figure: (i) platform bundling, which aims to replicate the functionality of incumbents as part of a multimarket bundle, and (ii) platform piggybacking, which aims to tap into the functionality of incumbents through boundary resources use. In this paper, we employ a fixed-effect time series modelling approach using data from Apple’s App Store to develop and test the influence of these two tactics on platform competition in terms of user base and user engagement in early saturated app markets. We contribute to a distinctiveness logic of platform competitiveness by leveraging the dualism of digital platforms as both markets and technological architectures.
Recommended Citation
Liu, Shiyuan(Eric); Henfridsson, Ola; and Nandhakumar, Joe, "Growing through Platform Distinctiveness in Early Saturated Markets" (2022). ICIS 2022 Proceedings. 6.
https://aisel.aisnet.org/icis2022/entren/entren/6
Growing through Platform Distinctiveness in Early Saturated Markets
High-growth ambitions are typically vital in platform markets. Yet, it is increasingly clear that the time window to occupy a novel platform market before it becomes saturated is surprisingly short. To this end, a differentiation strategy based on distinctive positioning across markets is increasingly prominent for new entrants to be competitive in early saturated markets. In the literature, two types of such tactics figure: (i) platform bundling, which aims to replicate the functionality of incumbents as part of a multimarket bundle, and (ii) platform piggybacking, which aims to tap into the functionality of incumbents through boundary resources use. In this paper, we employ a fixed-effect time series modelling approach using data from Apple’s App Store to develop and test the influence of these two tactics on platform competition in terms of user base and user engagement in early saturated app markets. We contribute to a distinctiveness logic of platform competitiveness by leveraging the dualism of digital platforms as both markets and technological architectures.
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14-DigitalInnovation