Context dependent trade-offs around platform-to-platform openness: The case of the Internet of Things.

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From: Technovation(Vol. 108)
Publisher: Elsevier Science Publishers
Document Type: Report; Brief article
Length: 287 words

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Abstract :

Keywords Internet-of-Things; Digital platforms; Platform openness Highlights * The paper explores why businesses open their IoT platforms to other platforms. * Important factors are direct and indirect benefits and costs, as well as strategic considerations. * Businesses make trade-offs on platform-to-platform openness on a case-by-case basis. * Organizational and market context affects how businesses make openness trade-offs. Abstract As digital platforms are dominating the digital economy, complex ecologies of platforms are emerging. While the openness of digital platforms is an important theme in platform studies, the openness between platforms has hardly been studied. This paper explores factors that affect decisions by platform owners to open their platforms to other platforms. The focus is on Internet-of-Things platforms for automotive and healthcare applications. According to the findings, platform owners make trade-offs on whether to open up on a case-by-case basis. We identify a complex array of factors relating to direct benefits and costs (e.g., revenues from selling platform data), indirect benefits (e.g., attractiveness of the focal platform to users) as well as strategic consideration (e.g., improving bargaining power towards other actors). How businesses make trade-offs on these factors depends on market-level context (e.g., maturity of the market and standards) and organizational context (e.g., strategic focus and business objectives). Our findings provide a basis for future studies on the openness between platforms, which will become increasingly important as platforms proliferate in every layer of the digital industry. Author Affiliation: Delft University of Technology, Faculty Technology, Policy and Management, Jaffalaan 5, 2628 BX Delft, the Netherlands * Corresponding author. Article History: Received 26 May 2020; Revised 8 June 2021; Accepted 21 June 2021 Byline: Lars Mosterd, Vladimir C.M. Sobota, Geerten van de Kaa, Aaron Yi Ding, Mark de Reuver [g.a.dereuver@tudelft.nl] (*)

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Gale Document Number: GALE|A679028058