Resource-based co-innovation through platform ecosystem: experiences of mobile payment innovation in China

Junying Zhong · Marko Nieminen

54 citations0/0 files storedJournal of strategy and management

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Service and Product Innovation Business Strategy and Innovation Digital Platforms and Economics

Abstract

Purpose – The purpose of this paper is to introduce the RISE model on service innovation in coopetitive business environment. The case study illustrates why and how Chinese providers utilize ecosystems for innovative mobile payment service development to achieve coopetitive advantage based on firms’ superior resources. Design/methodology/approach – The companies in the case study include Alipay (third-party actor), Bestpay (mobile operator), and UnionPay (banking). Empirical data comes from semi-structured interviews complemented with observations and documents. The analysis of the data follows grounded theory guidelines: creation of a theoretical framework, data collection, and interpretation of the data using the coding strategies of open coding, axial coding, and selected coding. Findings – Inter-organizational co-innovation appears as a successful strategy for mobile payment service innovation. In addition to strategic choice on this, understanding of superior and inferior resources and capabilities influence firms’ coopetitive advantages in a coopetitive service development environment. Ecosystems are formed along with the innovating activities, and difficulties are caused by coopetition challenges. The RISE model enables the analysis and selection of strategic patterns for service innovation in a coopetitive environment. Originality/value – The paper contributes to resource-advantage theory and platform ecosystem theory. The theories are used to analyze and model the effects of strategy execution for achieving win-win relationships in inter-organizational co-innovation. This paper helps executives to match their service innovation strategies to platform ecosystem architectures, as well as to understand how resource-advantage challenges affect the execution strategy of setting up their platform ecosystems.

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References

1992Basics of Qualitative Research: Grounded Theory Procedures and Techniques.1992Basics of Qualitative Research 1996Qualitative Interviewing: The Art of Hearing Data 1993The cornerstones of competitive advantage: A resource‐based view 2007Service-dominant logic: continuing the evolution 1987The Concept of Corporate Strategy 2010Research Commentary —The New Organizing Logic of Digital Innovation: An Agenda for Information Systems Research 1992Basics of Grounded Theory Analysis: Emergence Vs. Forcing

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