The influence of platform service innovation on value co-creation activities and the network effect

Wenhui Fu · Qiang Wang · Xiande Zhao

109 citations0/0 files storedJournal of service management

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

Abstract

Purpose The purpose of this paper is to explore the properties of platform service innovation and its relationship to value co-creation activities and the network effect. This is done over the course of a platform’s evolution through three stages: emergence, expansion and maturity. Design/methodology/approach Based on grounded theory, this study adopts a multiple case study research design. An in-depth analysis of the case data is done using ATLAS.TI software. Findings At the emergence stage, platform service innovations focus on building infrastructure. Platform owners stimulate the network effect directly via platform service innovations, rather than indirectly via value co-creation activities. At the expansion stage, the platform service innovations focus on building relationships among platform owner and different sides of participants. Platform owners stimulate the network effect indirectly, via value co-creation activities, rather than directly via platform service innovations. At the maturity stage, platform service innovations focus on building an environment for the platform ecosystem. Platform owners stimulate the network effect indirectly, via value co-creation activities rather than directly. Originality/value This research contributes to the service innovation literature by exploring the properties of platform service innovation and its relationship to value co-creation activities and the network effect from a longitudinal perspective. The principal managerial implication is that platform managers need to consider the developmental stage of the platform, as a mismatching of stage of development (emergence/expansion/maturity) and focus (an orientation toward building infrastructure, relationships or environment) may lead to a failure to stimulate or enhance the network effect.

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References

1968The Discovery of Grounded Theory: Strategies for Qualitative Research.1992Basics of Qualitative Research 2007Theory Building From Cases: Opportunities And Challenges 2004Case Study Research 2003Evolving to a New Dominant Logic for Marketing 1986Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy 1993Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy 2012Recenzja książki. Robert K. yin, Case Study Research. Design and Methods (fourth Edition), thousand Oaks, CA: Sage Publications, 2009

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