IDEAS home Printed from https://ideas.repec.org/a/spr/joinma/v29y2018i3d10.1007_s10845-015-1138-1.html
   My bibliography  Save this article

The impact of platform update interval on platform diffusion in a cooperative mobile ecosystem

Author

Listed:
  • Gyesik Oh

    (Seoul National University)

  • Yoo S. Hong

    (Seoul National University)

Abstract

In a mobile ecosystem, the platform provider has a huge influence on other stakeholders. The platform provider, which is to say the provider of a smartphone operating system, aims to grow its ecosystem sustainably by attracting various stakeholders such as users and application developers. Periodic platform upgrading is one of the effective strategies for appealing to potential participants as well as existing stakeholders. However, the diffusion of an updated platform is ineffective in a cooperative mobile ecosystem where a manufacturer modifies a platform released as open-source software on its smartphones. Even if the platform provider releases an updated version, users are not able to install it on their smartphones unless the manufacturer of those phones provides a follow-up update for it. Therefore, the platform provider should consider the response of the manufacturer to a follow-up update when it makes its decision on the platform update interval. This paper models the effectiveness of platform diffusion with respect to the platform update interval in consideration of the manufacturer’s decision mechanism. In the model, the manufacturer provides a follow-up update when the benefits of increasing repurchases exceed development costs. The application of the proposed model is illustrated with parameters derived from a current mobile ecosystem. Further, a sensitivity analysis is conducted to analyze the impact of those parameters on the effectiveness of updated-platform diffusion.

Suggested Citation

  • Gyesik Oh & Yoo S. Hong, 2018. "The impact of platform update interval on platform diffusion in a cooperative mobile ecosystem," Journal of Intelligent Manufacturing, Springer, vol. 29(3), pages 549-558, March.
    • Handle: RePEc:spr:joinma:v:29:y:2018:i:3:d:10.1007_s10845-015-1138-1
    DOI: 10.1007/s10845-015-1138-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10845-015-1138-1
    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/s10845-015-1138-1?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. John A. Norton & Frank M. Bass, 1987. "A Diffusion Theory Model of Adoption and Substitution for Successive Generations of High-Technology Products," Management Science, INFORMS, vol. 33(9), pages 1069-1086, September.
    2. Ittner, CD & Larcker, DF, 1998. "Are nonfinancial measures leading indicators of financial performance? An analysis of customer satisfaction," Journal of Accounting Research, Wiley Blackwell, vol. 36, pages 1-35.
    3. Nicholas Economides & Evangelos Katsamakas, 2006. "Two-Sided Competition of Proprietary vs. Open Source Technology Platforms and the Implications for the Software Industry," Management Science, INFORMS, vol. 52(7), pages 1057-1071, July.
    4. 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.
    5. Rahul Basole & Jürgen Karla, 2011. "On the Evolution of Mobile Platform Ecosystem Structure and Strategy," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 3(5), pages 313-322, October.
    6. Johnson, Michael D & Anderson, Eugene W & Fornell, Claes, 1995. "Rational and Adaptive Performance Expectations in a Customer Satisfaction Framework," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 21(4), pages 695-707, March.
    7. Kenney, Martin & Pon, Bryan, 2011. "Structuring the Smartphone Industry. Is the Mobile Internet OS Platform the Key?," Discussion Papers 1238, The Research Institute of the Finnish Economy.
    8. Thomas A. Roemer & Reza Ahmadi, 2004. "Concurrent Crashing and Overlapping in Product Development," Operations Research, INFORMS, vol. 52(4), pages 606-622, August.
    9. Druehl, Cheryl T. & Schmidt, Glen M. & Souza, Gilvan C., 2009. "The optimal pace of product updates," European Journal of Operational Research, Elsevier, vol. 192(2), pages 621-633, January.
    10. David C. Schmittlein & Robert A. Peterson, 1994. "Customer Base Analysis: An Industrial Purchase Process Application," Marketing Science, INFORMS, vol. 13(1), pages 41-67.
    11. David S. Evans & Andrei Hagiu & Richard Schmalensee, 2008. "Invisible Engines: How Software Platforms Drive Innovation and Transform Industries," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262550687, April.
    12. Frank M. Bass, 1969. "A New Product Growth for Model Consumer Durables," Management Science, INFORMS, vol. 15(5), pages 215-227, January.
    13. Kevin Boudreau, 2010. "Open Platform Strategies and Innovation: Granting Access vs. Devolving Control," Management Science, INFORMS, vol. 56(10), pages 1849-1872, October.
    14. Martin Kenney & Bryan Pon, 2011. "Structuring the Smartphone Industry: Is the Mobile Internet OS Platform the Key?," Journal of Industry, Competition and Trade, Springer, vol. 11(3), pages 239-261, September.
    15. Sunder Kekre & Mayuram S. Krishnan & Kannan Srinivasan, 1995. "Drivers of Customer Satisfaction for Software Products: Implications for Design and Service Support," Management Science, INFORMS, vol. 41(9), pages 1456-1470, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Harm-Jan Steenhuis & Xin Fang & Tolga Ulusemre, 2020. "Global Diffusion of Innovation during the Fourth Industrial Revolution: The Case of Additive Manufacturing or 3D Printing," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 17(01), pages 1-34, February.

    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. Maxime Thomas & Pascal Le Masson & Legrand Julien & Benoit Weil, 2018. "Platform Overthrow: uncovering the critical role of functional extension and generic technology [Allier extension fonctionnelle et généricité technique pour renverser une plateforme]," Post-Print hal-01833568, HAL.
    2. Bryan Pon & Timo Seppälä & Martin Kenney, 2015. "One Ring to Unite Them All: Convergence, the Smartphone, and the Cloud," Journal of Industry, Competition and Trade, Springer, vol. 15(1), pages 21-33, March.
    3. Maximilian Julius Krome & Ulrich Pidun, 2023. "Conceptualization of research themes and directions in business ecosystem strategies: a systematic literature review," Management Review Quarterly, Springer, vol. 73(2), pages 873-920, June.
    4. Benedict Bender, 2020. "The Impact of Integration on Application Success and Customer Satisfaction in Mobile Device Platforms," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 62(6), pages 515-533, December.
    5. Xing Wan & Javier Cenamor & Geoffrey Parker & Marshall Van Alstyne, 2017. "Unraveling Platform Strategies: A Review from an Organizational Ambidexterity Perspective," Sustainability, MDPI, vol. 9(5), pages 1-18, May.
    6. 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.
    7. Rahul Basole & Jürgen Karla, 2011. "On the Evolution of Mobile Platform Ecosystem Structure and Strategy," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 3(5), pages 313-322, October.
    8. Sanghoon Lee & Wonjoon Kim, 2017. "The knowledge network dynamics in a mobile ecosystem: a patent citation analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 111(2), pages 717-742, May.
    9. Burcu Tan & Edward G. Anderson, Jr. & Geoffrey G. Parker, 2020. "Platform Pricing and Investment to Drive Third-Party Value Creation in Two-Sided Networks," Information Systems Research, INFORMS, vol. 31(1), pages 217-239, March.
    10. Gawer, Annabelle, 2014. "Bridging differing perspectives on technological platforms: Toward an integrative framework," Research Policy, Elsevier, vol. 43(7), pages 1239-1249.
    11. Sang-Gun Lee & Eui-bang Lee & Chang-Gyu Yang, 2014. "Strategies for ICT product diffusion: the case of the Korean mobile communications market," Service Business, Springer;Pan-Pacific Business Association, vol. 8(1), pages 65-81, March.
    12. Crémer, Jacques & Biglaiser, Gary & Veiga, André, 2022. "Should I stay or should I go? Migrating away from an incumbent platform," TSE Working Papers 21-1281, Toulouse School of Economics (TSE).
    13. Mucha, Tomasz & Seppälä, Timo, 2020. "Artificial Intelligence Platforms – A New Research Agenda for Digital Platform Economy," ETLA Working Papers 76, The Research Institute of the Finnish Economy.
    14. Rong, Ke & Patton, Dean & Chen, Weiwei, 2018. "Business models dynamics and business ecosystems in the emerging 3D printing industry," Technological Forecasting and Social Change, Elsevier, vol. 134(C), pages 234-245.
    15. Minhyuk Sur & Deok-Joo Lee & Kyung-Taek Kim, 2019. "Optimal revenue sharing in platform markets: a Stackelberg model," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 18(4), pages 317-331, August.
    16. Lei Huang & Yandong Zhao & Liang Mei & Peiyi Wu & Zhihua Zhao & Yijun Mao, 2019. "Structural Holes in the Multi-Sided Market: A Market Allocation Structure Analysis of China’s Car-Hailing Platform in the Context of Open Innovation," Sustainability, MDPI, vol. 11(20), pages 1-20, October.
    17. Andrei Hagiu & Daniel Spulber, 2013. "First-Party Content and Coordination in Two-Sided Markets," Management Science, INFORMS, vol. 59(4), pages 933-949, April.
    18. Liao, Shuangqing & Seifert, Ralf W., 2015. "On the optimal frequency of multiple generation product introductions," European Journal of Operational Research, Elsevier, vol. 245(3), pages 805-814.
    19. 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.
    20. 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).

    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:joinma:v:29:y:2018:i:3:d:10.1007_s10845-015-1138-1. 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.