Reconfiguration of Business Models and Ecosystems by Svetla T. Marinova & Marinov Marin A

Author:Svetla T. Marinova & Marinov, Marin A.
Language: eng
Format: epub
Tags: BUSINESS & ECONOMICS/General, BUSINESS & ECONOMICS/International/General, BUSINESS & ECONOMICS/Management, BUSINESS & ECONOMICS/Marketing/General, BUSINESS & ECONOMICS/Strategic Planning
ISBN: 9781000835151
Publisher: Taylor and Francis
Published: 2023-08-15T00:00:00+00:00

Implications for Practice

Our study proposes several recommendations for platform managers and practitioners when platforms consider integrating into MPEs an opportunity to expand their business scope and market share. First, we encourage platform managers to consider the contextual factors for their platforms to integrate into MPEs in defining the goals of their integrations. The in-depth analysis of our case indicates that coopetition comes as a risky strategic decision for the incumbent platforms to undertake, especially when they collaborate with competing entrants who bring disruptive innovation to the market. Incumbents risk collaborating with entrants associated with the fear of technology imitation and losing the aspiration for market superiority. Nonetheless, the integration into MPEs and collaboration with competing platforms enriches the individual platform's ability to conduct R&D projects on a larger scale beyond the individual platform's ability. By highlighting the coopetition-related tensions, we hope to encourage platform managers and decision-makers to define the coopetition framework in terms of the choice of leadership and governance roles, whether centralised or collective models. We propose that well-defined contextual factors for platforms’ integration into MPS reduce the likelihood of tensions that cause dropouts in the advanced stages of integrations. The agreement of the coopetition framework that is made during the early stages of integration into MPEs can also influence the control of the tensions that may arise in later phases.

Second, we argue that high levels of platform-to-platform openness do not prevent the inter-complementarity tensions when some platforms realise significant opportunities outside the scope of MPEs. However, when platforms operate in complex domains like healthcare, a balanced coopetition dynamics between incumbent and new entrant platform works well in MPEs if it guarantees the incumbent platforms’ dominance in the market and enables new entrant platforms to get their own share of the market. We conclude that collective governance models are needed to integrate new entrants and incumbent platforms into MPEs. Otherwise, tensions will arise from controlled governance; opportunistic behaviour then hinders the collective value creation between platforms. This study may encourage platform managers and decision-makers to achieve a collective governance model within their coopetition agreement.

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