While prior literature has identified the expropriation threats from platform owners on complementors and the competition between them, little attention has been paid to different entry modes adopted by platform owners to enter complementary markets. This study endeavors to investigate the antecedents of platform owners’ decision on different entry modes (i.e., direct entry mode and private-label entry mode), based on an empirical study on Amazon.com. We explore the different characteristics of product spaces entered by Amazon using each entry mode. The preliminary results show that the direct entry mode is preferred by Amazon to enter successful product spaces while the private-label entry mode is favored when targeting less competitive product spaces. This study contributes to the literature on platform-based markets by extending the research focus from single entry mode to various entry modes of a digital platform owner, and provides richer understandings towards the platform owners’ competitive behaviors.
ZHENG, Shiying; Pu, Xiaodie; CHEN, Jin; LI, Jiatao; and Chong, Alain Yee-Loong Professor, "Digital Platform Owners’ Entry Modes in E-commerce Landscape: An Empirical Study on Amazon.com" (2020). PACIS 2020 Proceedings. 163.
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