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From product to platform: How incumbents' assumptions and choices shape their platform strategy

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  • Van Dyck, Marc
  • Lüttgens, Dirk
  • Diener, Kathleen
  • Piller, Frank
  • Pollok, Patrick

Abstract

Platform ecosystems have attracted a lot of attention as a new way of value creation and capture. In a longitudinal multi-case study, we compare the transformation efforts of two incumbents in the agricultural equipment industry between 2012 and 2021. We identify a set of interdependent choices incumbents make to adapt their model of value creation and capture toward a platform ecosystem. Based on an in-depth comparison, we show that incumbents' assessment of the potential of their product business may lead to distinct platform positioning – the platform as an extension of the legacy business (i.e., product-centric), or a product-independent platform. While our results indicate that both can initiate viable pathways for incumbents in their transition, we find that product-independent and product-centric positioning lead to distinct choice patterns and outcomes at the different levels of the emerging platform ecosystem.

Suggested Citation

  • Van Dyck, Marc & Lüttgens, Dirk & Diener, Kathleen & Piller, Frank & Pollok, Patrick, 2024. "From product to platform: How incumbents' assumptions and choices shape their platform strategy," Research Policy, Elsevier, vol. 53(1).
    • Handle: RePEc:eee:respol:v:53:y:2024:i:1:s0048733323001889
    DOI: 10.1016/j.respol.2023.104904
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