Market Orchestrators: The Effects of Certification on Platforms and Their Complementors

Forthcoming at Strategy Science

43 Pages Posted: 28 Feb 2018 Last revised: 4 May 2021

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: May 3, 2021

Abstract

We study how a multisided platform’s decision to certify a subset of its complementors affects those complementors and ultimately the platform itself. Kiva, a microfinance platform, introduced a Social Performance badging program in December 2011. The badging program appears to have been beneficial to Kiva—it led to more borrowers, lenders, total funding, and amount of funding per lender. To better understand the mechanisms behind this performance increase, we study how the badging program changed the bundle of products offered by Kiva’s complementors. We find that Kiva’s certification leads badged microfinance institutions to reorient their loan portfolio composition to align with the certification and that the extent of portfolio reorientation varies across microfinance institutions, depending on underlying demand- and supply-side factors. We further show that microfinance institutions that do align their loan portfolios enjoy stronger demand-side benefits than certified microfinance institutions that do not align their loan portfolios. We therefore demonstrate that platforms can influence the product offerings and performance of their complementors—and subsequently the performance of the ecosystem overall—through careful enactment of governance strategies, a process we call “market orchestration.”

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

Suggested Citation

Rietveld, Joost and Seamans, Robert and Meggiorin, Katia, Market Orchestrators: The Effects of Certification on Platforms and Their Complementors (May 3, 2021). Forthcoming at Strategy Science, 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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