The Role of Competitive Actions in Maximizing Visibility When Entering Algorithmically Managed Ecosystems
2021 | International Conference on Information Systems | Citations: 0
Authors: Rodriguez, Joaquin; Piccoli, Gabriele
Abstract: Platform owners increasingly exert their control over complementors through dig ...
Expand
Abstract: Platform owners increasingly exert their control over complementors through digital algorithms. A prominent example is the algorithmic management of visibility. When complementors join a platform ecosystem, they must compete for visibility with existing complementors. Recognizing their inherent position of disadvantage, platform owners promote the visibility of new entrants through an algorithmic boost. By adopting the point of view of complementors, we investigate how they can improve their visibility by carrying out competitive actions. Extending competitive repertoire theory, we investigate the role of ecosystem-specific experience and the competitive repertoires configured by complementors in their pursuit of visibility. We assemble a unique dataset from a dominant food delivery aggregator in Europe. The results show that complementors that gain higher levels of ecosystem-specific experience and carry out more aggressive competitive repertoires, maximize their visibility. We also uncover how the impact of implementing competitive actions depends on the level of ecosystem experience.
Collapse
Semantic filters:
competitive repertoire theory
Topics:
digital ecosystem electronic market website algorithmic management financial performance
Methods:
computational algorithm qualitative interview statistical hypothesis test archival research
Theories:
competitive repertoire theory theory of bounded rationality
Platform-Based Function Repertoire, Reputation, and Sales Performance of E-Marketplace Sellers
2019 | Management Information Systems Quarterly | Citations: 0
Authors: Huifang Li; Yulin Fang; Lim, Kai H.; Youwei Wang
Abstract: In today’s emerging and competitive e-marketplaces, sellers must take competitiv ...
Expand
Abstract: In today’s emerging and competitive e-marketplaces, sellers must take competitive action to improve their sales performance. E-marketplace platform operators offer sellers a portfolio of platform-based functions that are intended to enhance competitiveness. However, little is known about how these platform-based functions can be used at the repertoire level to improve the sales performance of e-marketplace sellers. Extending the competitive repertoire theory to the e-marketplace context and integrating it with the e-commerce literature on reputation, we posit that a seller could improve sales performance by using these functions as a repertoire, featuring such structural characteristics as large volume, high complexity, and heterogeneity. We also posit that the performance impact of this repertoire approach to function use varies depending on seller reputation, manifested as customer rating. We empirically examined the hypotheses with a unique longitudinal dataset consisting of 43,992 seller-week observations from Taobao, one of the largest e-marketplaces in the world. Our analyses yield a set of interesting findings that unveil more nuanced theoretical relationships between different structural characteristics of the platform-based function repertoire and sales performance under different levels of seller reputation. We elaborate on how these findings contribute to the e-marketplace literature in the information systems field and the competitive action research in the strategy field. We also discuss implications for practice and make suggestions for future work.
Collapse