Platform development in incumbent firms: the interplay of data and actor interests in adding platforms to existing businesses
File(s)
Author(s)
Fraser, Jack
Altman, Elizabeth J
Ozcan, Pinar
Type
Journal Article
Abstract
Research Summary
Despite growing interest in platform transitions, limited research examines how firms navigate challenges of building platform businesses alongside existing products. Through a longitudinal case study of a financial services firm launching a platform, we develop a process model revealing how data bottlenecks shape platform development. These bottlenecks arise from the interplay of technological limitations and control tensions over data aggregation, sharing, and usage. We identify five sequential bottlenecks, where resolving one reconfigures constraints, giving rise to the next. We theorize how data heterogeneity, variation in strategic sensitivity, and actors' absorptive capacity create opportunities for platform sponsors to capture value without competing with complementors. We extend resource dependency theory by showing how peripheral units overcome power imbalances by demonstrating value creation potential with limited data.
Despite growing interest in platform transitions, limited research examines how firms navigate challenges of building platform businesses alongside existing products. Through a longitudinal case study of a financial services firm launching a platform, we develop a process model revealing how data bottlenecks shape platform development. These bottlenecks arise from the interplay of technological limitations and control tensions over data aggregation, sharing, and usage. We identify five sequential bottlenecks, where resolving one reconfigures constraints, giving rise to the next. We theorize how data heterogeneity, variation in strategic sensitivity, and actors' absorptive capacity create opportunities for platform sponsors to capture value without competing with complementors. We extend resource dependency theory by showing how peripheral units overcome power imbalances by demonstrating value creation potential with limited data.
Date Issued
2026-09-24
Date Acceptance
2026-08-17
Citation
Strategic Management Journal, 2026
ISSN
0143-2095
Publisher
Wiley
Journal / Book Title
Strategic Management Journal
Copyright Statement
© 2026 The Author(s). Strategic Management Journal published by John Wiley & Sons Ltd. This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.
License URL
Publication Status
Published online
Date Publish Online
2026-09-24