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The Impact of Control and Innovation Capabilities on Performance in a Platform Ecosystem: An Assessment of Chinese Firms

Author

Listed:
  • Qiaohong Pan

    (Zhejiang Wanli University)

  • Wenping Luo

    (Shanghai Maritime University)

  • Benjamin Ohene Kwapong Baffoe

    (Shanghai Beiye New Brother Supply Chain Management Co., Ltd.)

Abstract

Attracting considerable attention in both academia and industry, control in a digital platform ecosystem continues to serve as an important mechanism for innovation. However, the relationship between control, innovation capabilities, and performance is unclear. Probing further on this gap, survey data of 386 Chinese platform enterprises and a partial least square structural equation model (PLS-SEM) were employed to empirically analyze the impact and effects found in a platform ecosystem. The analyzed results support the proposed hypotheses; thus, outcome and informal control factors positively impact incremental innovation capability, while behavior control in a platform ecosystem significantly impacts radical innovation capability. The results also show that the influence of incremental innovation capability on financial performance is significant, and the influence of radical innovation capability on market performance is favorable. This study provides insight for platform managers to make platform ecosystem control mechanisms consistent with their innovation to improve performance.

Suggested Citation

  • Qiaohong Pan & Wenping Luo & Benjamin Ohene Kwapong Baffoe, 2024. "The Impact of Control and Innovation Capabilities on Performance in a Platform Ecosystem: An Assessment of Chinese Firms," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 12783-12808, September.
    • Handle: RePEc:spr:jknowl:v:15:y:2024:i:3:d:10.1007_s13132-023-01478-4
    DOI: 10.1007/s13132-023-01478-4
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