Escaping Platform Ecosystem Myopia: The Importance of Second-Order Ecosystems

37 Pages Posted: 22 Sep 2022

See all articles by Donato Cutolo

Donato Cutolo

University of Bologna - Department of Management

Andrew Hargadon

University of California, Davis

Martin Kenney

University of California, Davis

Date Written: August 15, 2022

Abstract

Platform ecosystems have become dominant structures shaping a range of markets. Despite the increasing research attention placed on platforms and their ecosystems, the basic model comprising the platform and its sides does not consider the constellation of firms that has emerged to assist complementors in creating and capturing value. We define these actors as composing a “second-order ecosystem” (SOE). SOE actors provide a variety of services to complementors on a particular platform to improve their performance. Their innovations create strategic challenges for the platform and indirectly affect the whole ecosystem's evolution. We explain the origins and function of SOEs and discuss the multivalent impacts they have on the positions and strategies of complementors, platform owners, and other side(s). We close by identifying future research directions.

Keywords: Platform economy, platforms, platform dependence, complementors, digital, ecosystem

JEL Classification: M10, M15, L13, O30

Suggested Citation

Cutolo, Donato and Hargadon, Andrew and Kenney, Martin, Escaping Platform Ecosystem Myopia: The Importance of Second-Order Ecosystems (August 15, 2022). Available at SSRN: https://ssrn.com/abstract=4207076 or http://dx.doi.org/10.2139/ssrn.4207076

Donato Cutolo

University of Bologna - Department of Management ( email )

Piazza Scaravilli 1
Bologna, Bologna 40126
ITALY

Andrew Hargadon

University of California, Davis ( email )

One Shields Avenue
Apt 153
Davis, CA 95616
United States

Martin Kenney (Contact Author)

University of California, Davis ( email )

Community and Regional Development Unit
Davis, CA 95616
United States
5305745943 (Phone)

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