IDEAS home Printed from https://ideas.repec.org/a/spr/elmark/v33y2023i1d10.1007_s12525-023-00618-7.html
   My bibliography  Save this article

How to design platform ecosystems by intrapreneurs: Implications from action design research on IoT-based platform

Author

Listed:
  • Yuki Inoue

    (Hosei University)

  • Takeshi Takenaka

    (National Institute of Advanced Industrial Science and Technology)

  • Takami Kasasaku

    (Fujitsu Frontech Limited)

  • Tadafumi Tamegai

    (Fujitsu Frontech Limited)

  • Ryohei Arai

    (Fujitsu Frontech Limited)

Abstract

The recent technological evolution of the Internet of Things (IoT) and data sciences has created opportunities for intrapreneurs in non-platform firms to expand their businesses into platform ecosystem-related businesses. However, previous studies have typically focused on cases involving entrepreneurs. This study aims to clarify how intrapreneurs’ design for platform ecosystems could be different from that of entrepreneurs. We conducted an action design research (ADR) project in collaboration with a company for 29 months, and designed a platform ecosystem structure based on technological platforms related to radio frequency identifiers (RFID). Our main contribution is the following six-step process that describes how intrapreneurs design platform ecosystems: (1) designing an initial ecosystem structure based on platform ecosystem concepts and certain concepts related to the targeted market; (2) analyzing past business cases; (3) making the ecosystem structure into concrete shape; (4) verifying its validity; (5) elaborating the ecosystem structure; and (6) proposing the designed ecosystem business. Our findings highlight the differences between intrapreneurs’ and entrepreneurs’ designs of the ecosystem. First, when the design processes are underway, the direction of the design of the ecosystem needs to be flexibly modified to align with the strategy of the firm. Second, evidence for the success of the proposed platform ecosystem is required to reduce uncertainty and clarify the legitimacy of the proposition. Third, the structure of a platform ecosystem designed by intrapreneurs becomes a style that supports the existing businesses and networks of the firm.

Suggested Citation

  • Yuki Inoue & Takeshi Takenaka & Takami Kasasaku & Tadafumi Tamegai & Ryohei Arai, 2023. "How to design platform ecosystems by intrapreneurs: Implications from action design research on IoT-based platform," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-26, December.
    • Handle: RePEc:spr:elmark:v:33:y:2023:i:1:d:10.1007_s12525-023-00618-7
    DOI: 10.1007/s12525-023-00618-7
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12525-023-00618-7
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s12525-023-00618-7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. V. Krishnan & Saurabh Gupta, 2001. "Appropriateness and Impact of Platform-Based Product Development," Management Science, INFORMS, vol. 47(1), pages 52-68, January.
    2. Christofer F. Daiberl & Sascha Julian Oks & Angela Roth & Kathrin M. Möslein & Steven Alter, 2019. "Design principles for establishing a multi-sided open innovation platform: lessons learned from an action research study in the medical technology industry," Electronic Markets, Springer;IIM University of St. Gallen, vol. 29(4), pages 711-728, December.
    3. Vandermerwe, Sandra & Rada, Juan, 1988. "Servitization of business: Adding value by adding services," European Management Journal, Elsevier, vol. 6(4), pages 314-324, December.
    4. Joost Rietveld & Melissa A. Schilling & Cristiano Bellavitis, 2019. "Platform Strategy: Managing Ecosystem Value Through Selective Promotion of Complements," Organization Science, INFORMS, vol. 30(6), pages 1232-1251, November.
    5. Simone Scholten & Ulrich Scholten, 2012. "Platform-based Innovation Management: Directing External Innovational Efforts in Platform Ecosystems," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 3(2), pages 164-184, June.
    6. Gawer, Annabelle, 2014. "Bridging differing perspectives on technological platforms: Toward an integrative framework," Research Policy, Elsevier, vol. 43(7), pages 1239-1249.
    7. Mark Armstrong, 2006. "Competition in two‐sided markets," RAND Journal of Economics, RAND Corporation, vol. 37(3), pages 668-691, September.
    8. Jean‐Charles Rochet & Jean Tirole, 2006. "Two‐sided markets: a progress report," RAND Journal of Economics, RAND Corporation, vol. 37(3), pages 645-667, September.
    9. Andreas Hein & Maximilian Schreieck & Manuel Wiesche & Markus Böhm & Helmut Krcmar, 2019. "The emergence of native multi-sided platforms and their influence on incumbents," Electronic Markets, Springer;IIM University of St. Gallen, vol. 29(4), pages 631-647, December.
    10. Matthew T. Clements & Hiroshi Ohashi, 2005. "Indirect Network Effects And The Product Cycle: Video Games In The U.S., 1994–2002," Journal of Industrial Economics, Wiley Blackwell, vol. 53(4), pages 515-542, December.
    11. Caillaud, Bernard & Jullien, Bruno, 2003. "Chicken & Egg: Competition among Intermediation Service Providers," RAND Journal of Economics, The RAND Corporation, vol. 34(2), pages 309-328, Summer.
    12. Daniel Fürstenau & Carolin Auschra & Stefan Klein & Martin Gersch, 2019. "A process perspective on platform design and management: evidence from a digital platform in health care," Electronic Markets, Springer;IIM University of St. Gallen, vol. 29(4), pages 581-596, December.
    13. Hagiu, Andrei & Wright, Julian, 2015. "Multi-sided platforms," International Journal of Industrial Organization, Elsevier, vol. 43(C), pages 162-174.
    14. Kohtamäki, Marko & Parida, Vinit & Oghazi, Pejvak & Gebauer, Heiko & Baines, Tim, 2019. "Digital servitization business models in ecosystems: A theory of the firm," Journal of Business Research, Elsevier, vol. 104(C), pages 380-392.
    15. Rodolphe Durand & Robert M. Grant & Tammy L. Madsen & David P. McIntyre & Arati Srinivasan, 2017. "Networks, platforms, and strategy: Emerging views and next steps," Strategic Management Journal, Wiley Blackwell, vol. 38(1), pages 141-160, January.
    16. Yuki Inoue & Takeshi Takenaka & Koichi Kurumatani, 2019. "Sustainability of Service Intermediary Platform Ecosystems: Analysis and Simulation of Japanese Hotel Booking Platform-Based Markets," Sustainability, MDPI, vol. 11(17), pages 1-22, August.
    17. Shahzad (Shaz) Ansari & Raghu Garud & Arun Kumaraswamy, 2016. "The disruptor's dilemma: TiVo and the U.S. television ecosystem," Strategic Management Journal, Wiley Blackwell, vol. 37(9), pages 1829-1853, September.
    18. Yuki Inoue & Masaharu Tsujimoto, 2018. "Genres Of Complementary Products In Platform-Based Markets: Changes In Evolutionary Mechanisms By Platform Diffusion Strategies," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(01), pages 1-32, January.
    19. Jean-Charles Rochet & Jean Tirole, 2003. "Platform Competition in Two-Sided Markets," Journal of the European Economic Association, MIT Press, vol. 1(4), pages 990-1029, June.
    20. Sklyar, Alexey & Kowalkowski, Christian & Tronvoll, Bård & Sörhammar, David, 2019. "Organizing for digital servitization: A service ecosystem perspective," Journal of Business Research, Elsevier, vol. 104(C), pages 450-460.
    21. Marcel Bogers & Ann-Kristin Zobel & Allan Afuah & Esteve Almirall & Sabine Brunswicker & Linus Dahlander & Lars Frederiksen & Annabelle Gawer & Marc Gruber & Stefan Haefliger & John Hagedoorn & Dennis, 2017. "The open innovation research landscape: established perspectives and emerging themes across different levels of analysis," Industry and Innovation, Taylor & Francis Journals, vol. 24(1), pages 8-40, January.
    22. Evans David S., 2003. "Some Empirical Aspects of Multi-sided Platform Industries," Review of Network Economics, De Gruyter, vol. 2(3), pages 1-19, September.
    23. Benson Honig, 2001. "Learning Strategies and Resources for Entrepreneurs and Intrapreneurs," Entrepreneurship Theory and Practice, , vol. 26(1), pages 21-34, October.
    24. Carmelo Cennamo & Juan Santaló, 2019. "Generativity Tension and Value Creation in Platform Ecosystems," Organization Science, INFORMS, vol. 30(3), pages 617-641, May.
    25. 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).
    26. Feng Zhu & Marco Iansiti, 2012. "Entry into platform‐based markets," Strategic Management Journal, Wiley Blackwell, vol. 33(1), pages 88-106, January.
    27. Key Pousttchi & Alexander Gleiss, 2019. "Surrounded by middlemen - how multi-sided platforms change the insurance industry," Electronic Markets, Springer;IIM University of St. Gallen, vol. 29(4), pages 609-629, December.
    28. Kevin J. Boudreau & Lars B. Jeppesen, 2015. "Unpaid crowd complementors: The platform network effect mirage," Strategic Management Journal, Wiley Blackwell, vol. 36(12), pages 1761-1777, December.
    29. Rymaszewska, Anna & Helo, Petri & Gunasekaran, Angappa, 2017. "IoT powered servitization of manufacturing – an exploratory case study," International Journal of Production Economics, Elsevier, vol. 192(C), pages 92-105.
    30. Boris Otto & Matthias Jarke, 2019. "Designing a multi-sided data platform: findings from the International Data Spaces case," Electronic Markets, Springer;IIM University of St. Gallen, vol. 29(4), pages 561-580, December.
    31. Opresnik, David & Taisch, Marco, 2015. "The value of Big Data in servitization," International Journal of Production Economics, Elsevier, vol. 165(C), pages 174-184.
    32. Karl Taeuscher, 2019. "Uncertainty kills the long tail: demand concentration in peer-to-peer marketplaces," Electronic Markets, Springer;IIM University of St. Gallen, vol. 29(4), pages 649-660, December.
    33. Sebastian Brenk & Dirk Lüttgens & Kathleen Diener & Frank Piller, 2019. "Learning from failures in business model innovation: solving decision-making logic conflicts through intrapreneurial effectuation," Journal of Business Economics, Springer, vol. 89(8), pages 1097-1147, December.
    34. Wallbach, Sören & Coleman, Katrin & Elbert, Ralf & Benlian, Alexander, 2019. "Multi-sided platform diffusion in competitive B2B networks: Inhibiting factors and their impact on network effects," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 117236, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    35. Sören Wallbach & Katrin Coleman & Ralf Elbert & Alexander Benlian, 2019. "Multi-sided platform diffusion in competitive B2B networks: inhibiting factors and their impact on network effects," Electronic Markets, Springer;IIM University of St. Gallen, vol. 29(4), pages 693-710, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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).
    2. Jacobides, Michael G. & Cennamo, Carmelo & Gawer, Annabelle, 2024. "Externalities and complementarities in platforms and ecosystems: From structural solutions to endogenous failures," Research Policy, Elsevier, vol. 53(1).
    3. Yuki Inoue & Masataka Hashimoto & Takeshi Takenaka, 2019. "Effectiveness of Ecosystem Strategies for the Sustainability of Marketplace Platform Ecosystems," Sustainability, MDPI, vol. 11(20), pages 1-33, October.
    4. Jan Frederic Nerbel & Markus Kreutzer, 2023. "Digital platform ecosystems in flux: From proprietary digital platforms to wide-spanning ecosystems," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-20, December.
    5. Nizar Abdelkafi & Christina Raasch & Angela Roth & R. Srinivasan, 2019. "Multi-sided platforms," Electronic Markets, Springer;IIM University of St. Gallen, vol. 29(4), pages 553-559, December.
    6. Carmelo Cennamo & Hakan Ozalp & Tobias Kretschmer, 2018. "Platform Architecture and Quality Trade-offs of Multihoming Complements," Information Systems Research, INFORMS, vol. 29(2), pages 461-478, June.
    7. Jørgen Veisdal, 2020. "The dynamics of entry for digital platforms in two-sided markets: a multi-case study," Electronic Markets, Springer;IIM University of St. Gallen, vol. 30(3), pages 539-556, September.
    8. Satish Nambisan & Shaker A. Zahra & Yadong Luo, 2019. "Global platforms and ecosystems: Implications for international business theories," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(9), pages 1464-1486, December.
    9. Nishikawa, Bruna T. & Orsato, Renato J., 2021. "Professional services in the age of platforms: Towards an analytical framework," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    10. 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).
    11. Yuki Inoue & Takeshi Takenaka & Koichi Kurumatani, 2019. "Sustainability of Service Intermediary Platform Ecosystems: Analysis and Simulation of Japanese Hotel Booking Platform-Based Markets," Sustainability, MDPI, vol. 11(17), pages 1-22, August.
    12. Yuki Inoue, 2019. "Winner-Takes-All or Co-Evolution among Platform Ecosystems: A Look at the Competitive and Symbiotic Actions of Complementors," Sustainability, MDPI, vol. 11(3), pages 1-25, January.
    13. Jingtao Yi & Jinqiu He & Lihong Yang, 2019. "Platform heterogeneity, platform governance and complementors’ product performance: an empirical study of the mobile application industry," Frontiers of Business Research in China, Springer, vol. 13(1), pages 1-20, December.
    14. Liu, He & Li, Xuerong & Wang, Shouyang, 2021. "A bibliometric analysis of 30 years of platform research: Developing the research agenda for platforms, the associated technologies and social impacts," Technological Forecasting and Social Change, Elsevier, vol. 169(C).
    15. Cenamor, Javier & Frishammar, Johan, 2021. "Openness in platform ecosystems: Innovation strategies for complementary products," Research Policy, Elsevier, vol. 50(1).
    16. Veile, Johannes W. & Schmidt, Marie-Christin & Voigt, Kai-Ingo, 2022. "Toward a new era of cooperation: How industrial digital platforms transform business models in Industry 4.0," Journal of Business Research, Elsevier, vol. 143(C), pages 387-405.
    17. Inoue, Yuki & Tsujimoto, Masaharu, 2018. "New market development of platform ecosystems: A case study of the Nintendo Wii," Technological Forecasting and Social Change, Elsevier, vol. 136(C), pages 235-253.
    18. Bixiang Shi & Fangcheng Tang & Fenfen Wei, 2022. "The Path Constitution of Platform Evolution: An Organizational Momentum View," Sustainability, MDPI, vol. 14(15), pages 1-22, July.
    19. Fabian Schueler & Dimitri Petrik, 2022. "Objectives of platform research: A co-citation and systematic literature review analysis," Papers 2202.08822, arXiv.org.
    20. Rodolphe Durand & Robert M. Grant & Tammy L. Madsen & David P. McIntyre & Arati Srinivasan, 2017. "Networks, platforms, and strategy: Emerging views and next steps," Strategic Management Journal, Wiley Blackwell, vol. 38(1), pages 141-160, January.

    More about this item

    Keywords

    Platform ecosystem; Ecosystem design; Digital servitization; Radio frequency identification (RFID); Internet of Things (IoT); Intrapreneur;
    All these keywords.

    JEL classification:

    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:elmark:v:33:y:2023:i:1:d:10.1007_s12525-023-00618-7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.