Platform scope and value creation in digital platforms

Ramya K. Murthy and Anoop Madhok

Chapter 7 in Research Handbook on Digital Strategy, 2023, pp 143-158 from Edward Elgar Publishing

Abstract: Digital platform ecosystems are at the core of value creation in the digital era and a vital part of the digital strategy of firms. The generative nature of digital technologies makes it difficult for a platform sponsor to conceptualize and produce all potential product variations. Hence, co-creating value with autonomous third-party complementors is imperative. However, platform sponsors face unique uncertainties in enabling such value co-creation as often both the complementors and their value-enhancing complements are unknown ex ante. We demonstrate how platform scope, encompassing three elements - platform technology, sponsor, and market scope - helps the platform sponsor manage uncertainties in value co-creation by attracting the right set of complementors and fostering a predictable set of complements. We discuss the implications of the scope choices for value co-creation and digital strategy of firms and highlight key areas for future research.

Keywords: Asian Studies; Business and Management; Innovations and Technology (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.elgaronline.com/view/edcoll/9781800378902/9781800378902.00014.xml (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:elg:eechap:20348_7

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Darrel McCalla ().