Market Orchestrators: the Effect of Platform Certification on Complementor Behavior

44 Pages Posted: 28 Feb 2018 Last revised: 4 Oct 2018

See all articles by Joost Rietveld

Joost Rietveld

UCL School of Management

Robert Seamans

New York University (NYU) - Leonard N. Stern School of Business

Katia Meggiorin

New York University (NYU), Leonard N. Stern School of Business, Department of Management and Organizational Behavior, Students

Date Written: September 26, 2018

Abstract

Platforms need to carefully balance the needs of their customers and complementors. Certification of complementors is often used as part of this complex “market orchestration” process. We study how a platform’s use of certification affects complementors’ behavior, as pertains to the bundle of products offered. We use a unique dataset of Kiva’s microfinance platform to take advantage of a quasi-exogenous shock: Kiva’s unexpected introduction of a certification program of its complementors in late 2011. We show that Kiva’s certification leads microfinance institutions to reorient their loan portfolio composition. We further show that these effects vary across complementors depending on demand-side and supply-side factors. We interpret our results to suggest that there are limits to the extent platforms can influence the behavior of complementors.

Keywords: platforms, platform governance, complementors, certification, sharing economy

Suggested Citation

Rietveld, Joost and Seamans, Robert and Meggiorin, Katia, Market Orchestrators: the Effect of Platform Certification on Complementor Behavior (September 26, 2018). Available at SSRN: https://ssrn.com/abstract=3131553 or http://dx.doi.org/10.2139/ssrn.3131553

Joost Rietveld (Contact Author)

UCL School of Management ( email )

Level 38, One Canada Square, Canary Wharf
London, E14 5AA
United Kingdom

HOME PAGE: http://www.strategyguide.nl

Robert Seamans

New York University (NYU) - Leonard N. Stern School of Business ( email )

44 West 4th Street
Suite 9-160
New York, NY NY 10012
United States

Katia Meggiorin

New York University (NYU), Leonard N. Stern School of Business, Department of Management and Organizational Behavior, Students ( email )

44 West 4th Street
New York City, NY 10012
United States

HOME PAGE: http://www.stern.nyu.edu/experience-stern/about/departments-centers-initiatives/academic-departments

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