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Governance rigidity, industry evolution, and value capture in platform ecosystems

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Title: Governance rigidity, industry evolution, and value capture in platform ecosystems
Authors: Uzunca, B
Sharapov, D
Tee, R
Item Type: Journal Article
Abstract: Existing work has shown how, in platform ecosystems, firms can capture above-average rents by controlling hard-to-replace segments. However, initial conditions can have a lasting effect on a platform owner's ability to capture value as the ecosystem in which it operates evolves. We develop a theoretical framework that first considers the role of bargaining power and industry life cycle stage, showing how these shape initial governance arrangements and the platform owner's subsequent ability to capture value based on the rigidity of these arrangements. We then develop propositions, focusing on contingencies that moderate this degree of governance rigidity in platform ecosystems. Our framework helps understand the combined effects of initial conditions and governance rigidity as key drivers of a platform owner's ability to capture rents. Once we consider these dynamics, controlling a hard-to-replace segment may neither be sufficient nor necessary to obtain a large share of the value created by an ecosystem.
Issue Date: Sep-2022
Date of Acceptance: 17-May-2022
URI: http://hdl.handle.net/10044/1/97271
DOI: 10.1016/j.respol.2022.104560
ISSN: 0048-7333
Publisher: Elsevier BV
Start Page: 1
End Page: 15
Journal / Book Title: Research Policy
Volume: 51
Issue: 7
Copyright Statement: © 2022 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).
Keywords: Science Studies
1402 Applied Economics
1503 Business and Management
1505 Marketing
Publication Status: Published
Open Access location: https://www.sciencedirect.com/science/article/pii/S0048733322000841
Article Number: 104560
Online Publication Date: 2022-06-03
Appears in Collections:Imperial College Business School

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