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Cocreation of Value in a Platform Ecosystem: The Case of Enterprise Software

2012 | Management Information Systems Quarterly | Citations: 307
Authors: Ceccagnoli, Marco; Forman, Chris; Huang, Peng; Wu, D.j.

Abstract: It has been argued that platform technology owners cocreate business value with ... Expand

Abstract: It has been argued that platform technology owners cocreate business value with other firms in their platform ecosystems by encouraging complementary invention and exploiting indirect network effects. In this study, we examine whether participation in an ecosystem partnership improves the business performance of small independent software vendors (ISVs) in the enterprise software industry and how appropriability mechanisms influence the benefits of partnership. By analyzing the partnering activities and performance indicators of a sample of 1,210 small ISVs over the period 1996-2004, we find that joining a major platform owner's platform ecosystem is associated with an increase in sales and a greater likelihood of issuing an initial public offering(IPO). In addition, we show that these impacts are greater when ISVs have greater intellectual property rights or stronger downstream capabilities. This research highlights the value of interoperability between software products, and stresses that value cocreation and appropriation are not mutually exclusive strategies in interfirm collaboration. Collapse

Semantic filters: software copyright

Topics: digital ecosystem database system innovation management organizational productivity enterprise information system

Methods: instrumental variables estimation robustness check longitudinal research design methodology data modeling
When Do ISVs Join a Platform Ecosystem? Evidence from the Enterprise Software Industry

2009 | International Conference on Information Systems | Citations: 23
Authors: Huang, Peng; Ceccagnoli, Marco; Forman, Chris; Wu, D J

Abstract: In the enterprise software industry leading firms usually adopt an open platform ... Expand

Abstract: In the enterprise software industry leading firms usually adopt an open platform strategy and nurture their innovation ecosystem to achieve the shared success of the community. In this study we examine the antecedents of small independent software vendors’ (ISVs’) decision to join a platform ecosystem. Using data of 1208 ISVs’ history of partnering activities with a major enterprise software marker from 1996 to 2004, we find that appropriability strategies based on intellectual property rights and the possession of downstream complementary capabilities by ISVs are positively related to the partnership formation, and ISVs use the two mechanisms as substitutes to prevent expropriation by the platform owner. In addition, we show that greater level of competition in the downstream market between ISVs and the platform owner negatively affects the likelihood of partnering. The results highlight the role of innovation appropriation, downstream complementary capabilities and collaborative competition in the formation of enterprise software platform ecosystems. Collapse

Semantic filters: software copyright

Topics: enterprise information system innovation management digital ecosystem intellectual property software patent

Methods: robustness check hazard function proportional hazards model descriptive statistic longitudinal research

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Cocreation of Value in a Platform Ecosystem: The Case of Enterprise Software

When Do ISVs Join a Platform Ecosystem? Evidence from the Enterprise Software Industry