Paper Number
1418
Paper Type
Complete
Abstract
In collaboration with a world-leading e-commerce platform, we investigate how market information provision influences complementor innovation by analyzing over 40,000 sellers and their products. We find that a governance policy change from the platform that improves market information access increases new product offerings and reduces product life cycles. We develop novel indices for product innovation and find that the effect is particularly pronounced for the products with new attributes previously absent in the sellers’ portfolio. Sellers also tend to set higher prices and gain higher revenue from their new products compared to their existing ones. Further investigation into the supply and demand sides of the market reveals a tendency of sellers to adopt and integrate new product attributes from their peers. It results in a degree of alignment of customer bases responding to the revealed customer preferences and market needs.
Recommended Citation
Lou, Bowen; Yuan, Zhe; Sun, Tianshu; and Lu, Fang, "Enhancing Complementor Innovation through Market Information Expansion: A Large-scale Empirical Study of an E-Commerce Platform" (2024). ICIS 2024 Proceedings. 6.
https://aisel.aisnet.org/icis2024/gov_strategy/gov_strategy/6
Enhancing Complementor Innovation through Market Information Expansion: A Large-scale Empirical Study of an E-Commerce Platform
In collaboration with a world-leading e-commerce platform, we investigate how market information provision influences complementor innovation by analyzing over 40,000 sellers and their products. We find that a governance policy change from the platform that improves market information access increases new product offerings and reduces product life cycles. We develop novel indices for product innovation and find that the effect is particularly pronounced for the products with new attributes previously absent in the sellers’ portfolio. Sellers also tend to set higher prices and gain higher revenue from their new products compared to their existing ones. Further investigation into the supply and demand sides of the market reveals a tendency of sellers to adopt and integrate new product attributes from their peers. It results in a degree of alignment of customer bases responding to the revealed customer preferences and market needs.
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