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Governance Practices in Platform Ecosystems: Navigating Tensions Between Cocreated Value and Governance Costs

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  • Thomas L. Huber

    (University of Bern, 3012 Bern, Switzerland)

  • Thomas Kude

    (ESSEC Business School, 95021 Cergy-Pontoise, France)

  • Jens Dibbern

    (University of Bern, 3012 Bern, Switzerland)

Abstract

Based on an exploratory multiple-case study in two platform ecosystems, we develop a process theory that explains how and why different ways of practicing ecosystem-wide governance are more or less successful in navigating the tension between cocreated value and governance costs. Our process theory shows that how ecosystem-wide rules and values are practiced considerably varies and changes over time. Initially, governance practices follow ecosystem-wide rules; if and how practices shift toward going beyond the rules hinges on specific necessary conditions. Irrespective of which governance route is taken, the tension between cocreated value and governance costs is more successfully addressed if practices are sensitive to ecosystem-wide values.

Suggested Citation

  • Thomas L. Huber & Thomas Kude & Jens Dibbern, 2017. "Governance Practices in Platform Ecosystems: Navigating Tensions Between Cocreated Value and Governance Costs," Information Systems Research, INFORMS, vol. 28(3), pages 563-584, September.
    • Handle: RePEc:inm:orisre:v:28:y:2017:i:3:p:563-584
    DOI: 10.1287/isre.2017.0701
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    9. Martin Poniatowski & Hedda Lüttenberg & Daniel Beverungen & Dennis Kundisch, 2022. "Three layers of abstraction: a conceptual framework for theorizing digital multi-sided platforms," Information Systems and e-Business Management, Springer, vol. 20(2), pages 257-283, June.
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    14. Chan, Haksin & Yang, Morgan X. & Zeng, Kevin J., 2022. "Bolstering ratings and reviews systems on multi-sided platforms: A co-creation perspective," Journal of Business Research, Elsevier, vol. 139(C), pages 208-217.
    15. Jens Foerderer & Nele Lueker & Armin Heinzl, 2021. "And the Winner Is …? The Desirable and Undesirable Effects of Platform Awards," Information Systems Research, INFORMS, vol. 32(4), pages 1155-1172, December.
    16. Reiter, Andreas & Stonig, Joachim & Frankenberger, Karolin, 2024. "Managing multi-tiered innovation ecosystems," Research Policy, Elsevier, vol. 53(1).
    17. Haruo Awano & Masaharu Tsujimoto, 2022. "Mechanisms for Business Ecosystem Members to Capture Value through the Strong Network Effect," Sustainability, MDPI, vol. 14(18), pages 1-13, September.
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    19. Jens Foerderer & Thomas Kude & Sunil Mithas & Armin Heinzl, 2018. "Does Platform Owner’s Entry Crowd Out Innovation? Evidence from Google Photos," Information Systems Research, INFORMS, vol. 29(2), pages 444-460, June.
    20. Martin Engert & Julia Evers & Andreas Hein & Helmut Krcmar, 2022. "The Engagement of Complementors and the Role of Platform Boundary Resources in e-Commerce Platform Ecosystems," Information Systems Frontiers, Springer, vol. 24(6), pages 2007-2025, December.
    21. Inoue, Yuki, 2021. "Indirect innovation management by platform ecosystem governance and positioning: Toward collective ambidexterity in the ecosystems," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    22. Saadatmand, Fatemeh & Lindgren, Rikard & Schultze, Ulrike, 2019. "Configurations of platform organizations: Implications for complementor engagement," Research Policy, Elsevier, vol. 48(8), pages 1-1.
    23. Frenzel-Piasentin, Adeline & Glaser, Karoline & Toutaoui, Jonas & Veit, Daniel J., 2022. "'No Matter I’ll Be Selected; in the Next Challenge I Will Be Better!' – Understanding Non-Technical Skill Development in the Gig Economy," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 131889, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    24. Felix B. Buesching & Dennis M. Steininger & Daniel J. Veit, 2023. "Governing digital crisis responses: platform standards and the dilemma of COVID-19 contact tracing," Journal of Business Economics, Springer, vol. 93(1), pages 267-323, January.

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