IDEAS home Printed from https://ideas.repec.org/a/spr/svcbiz/v4y2010i2p89-103.html
   My bibliography  Save this article

Success factors of platform leadership in web 2.0 service business

Author

Listed:
  • Sang Lee
  • Taewan Kim
  • Yonghwi Noh
  • Byungku Lee

Abstract

The purpose of this study is to investigate the critical success factors of platform leadership in the Web 2.0 based service business environment. Because of the lack of theoretical foundation for this topic, we adopted relevant theory and case study analyses. Representative Web 2.0 firms which have developed platform leadership were chosen and analyzed on the basis of previous research on platform strategy through spider web analysis. This study shows that Web 2.0 firms such as Google, Flickr, and Salesforce.com differ in their competitive capabilities for platform leadership. The result of this research suggests that platform leadership in the Web 2.0 era depends on five interdependent dimensions: innovation ability, connectivity, complementarities, efficiency, and network effects. Copyright Springer-Verlag 2010

Suggested Citation

  • Sang Lee & Taewan Kim & Yonghwi Noh & Byungku Lee, 2010. "Success factors of platform leadership in web 2.0 service business," Service Business, Springer;Pan-Pacific Business Association, vol. 4(2), pages 89-103, June.
    • Handle: RePEc:spr:svcbiz:v:4:y:2010:i:2:p:89-103
    DOI: 10.1007/s11628-010-0093-3
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11628-010-0093-3
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11628-010-0093-3?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. Erik Brynjolfsson & Chris F. Kemerer, 1996. "Network Externalities in Microcomputer Software: An Econometric Analysis of the Spreadsheet Market," Management Science, INFORMS, vol. 42(12), pages 1627-1647, December.
    2. 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.
    3. Katz, Michael L & Shapiro, Carl, 1985. "Network Externalities, Competition, and Compatibility," American Economic Review, American Economic Association, vol. 75(3), pages 424-440, June.
    4. Gandal, Neil, 1995. "Competing Compatibility Standards and Network Externalities in the PC Software Market," The Review of Economics and Statistics, MIT Press, vol. 77(4), pages 599-608, November.
    5. Sang Lee & Domingo Ribeiro & David Olson & Salvador Roig, 2007. "The importance of the activities of service business in the economy: welcome to the Service Business. An International Journal," Service Business, Springer;Pan-Pacific Business Association, vol. 1(1), pages 1-5, March.
    6. Economides, Nicholas & Salop, Steven C, 1992. "Competition and Integration among Complements, and Network Market Structure," Journal of Industrial Economics, Wiley Blackwell, vol. 40(1), pages 105-123, March.
    7. Myungsook An & Yonghwi Noh, 2009. "Airline customer satisfaction and loyalty: impact of in-flight service quality," Service Business, Springer;Pan-Pacific Business Association, vol. 3(3), pages 293-307, September.
    8. David Dranove & Neil Gandal, 2003. "The Dvd‐vs.‐Divx Standard War: Empirical Evidence of Network Effects and Preannouncement Effects," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 12(3), pages 363-386, 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. María José Quero & Rafael Ventura & Carol Kelleher, 2017. "Value-in-context in crowdfunding ecosystems: how context frames value co-creation," Service Business, Springer;Pan-Pacific Business Association, vol. 11(2), pages 405-425, June.
    2. Netsanet Haile & Jörn Altmann, 2016. "Structural analysis of value creation in software service platforms," Electronic Markets, Springer;IIM University of St. Gallen, vol. 26(2), pages 129-142, May.
    3. Sang-Gun Lee & Chang-Gyu Yang & Sin-Bok Lee & Jae-Beom Lee, 2015. "A study on the antecedents and consequences of satisfaction and dissatisfaction in web portal usage," Service Business, Springer;Pan-Pacific Business Association, vol. 9(3), pages 567-586, September.
    4. Stange, Inga, 2022. "What Drives the B2B Platform Economy? A Qualitative Examination of Current Trends, Success Factors, and the Road Ahead," Junior Management Science (JUMS), Junior Management Science e. V., vol. 7(1), pages 1-31.
    5. Sang-Gun Lee & Byeonghwa Park & Si-Hyeon Kim & Hong-Hee Lee, 2012. "Innovation and imitation effects in the mobile telecommunication service market," Service Business, Springer;Pan-Pacific Business Association, vol. 6(3), pages 265-278, September.
    6. Fraccascia, Luca, 2020. "Quantifying the direct network effect for online platforms supporting industrial symbiosis: an agent-based simulation study," Ecological Economics, Elsevier, vol. 170(C).
    7. Guillermina Tormo-Carbó & Elies Seguí-Mas & Victor Oltra, 2014. "Web 2.0, social capital and work performance in service companies: the employees’ view," Service Business, Springer;Pan-Pacific Business Association, vol. 8(3), pages 439-452, September.
    8. Sang-Gun Lee & Silvana Trimi & Won Byun & Mincheol Kang, 2011. "Innovation and imitation effects in Metaverse service adoption," Service Business, Springer;Pan-Pacific Business Association, vol. 5(2), pages 155-172, June.
    9. Sang Lee & Liqiang Chen, 2011. "An integrative research framework for the online social network service," Service Business, Springer;Pan-Pacific Business Association, vol. 5(3), pages 259-276, September.
    10. Santiago Iglesias-Pradas & Ángel Hernández-García & Pedro Fernández-Cardador, 2014. "How socially derived characteristics of technology shape the adoption of corporate Web 2.0 tools for collaboration," Service Business, Springer;Pan-Pacific Business Association, vol. 8(3), pages 465-478, September.
    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.

    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. Nicholas Economides & Brian Viard, 2003. "Pricing of Complementary Goods and Network Effects," Working Papers 03-12, New York University, Leonard N. Stern School of Business, Department of Economics.
    2. Fabio Manenti & Ernesto Somma, 2008. "One-Way Compatibility, Two-Way Compatibility and Entry in Network Industries," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 15(3), pages 301-322.
    3. Oz Shy, 2011. "A Short Survey of Network Economics," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 38(2), pages 119-149, March.
    4. Junic Kim & Jaewook Yoo, 2019. "Platform Growth Model: The Four Stages of Growth Model," Sustainability, MDPI, vol. 11(20), pages 1-16, October.
    5. Knittel, Christopher R. & Stango, Victor, 2011. "Strategic incompatibility in ATM markets," Journal of Banking & Finance, Elsevier, vol. 35(10), pages 2627-2636, October.
    6. Ewald Scherm & Christian Maaß, 2006. "Zum Stellenwert der Netzwerkökonomik in der Strategie-/Marketingforschung —Eine Analyse empirischer Untersuchungen," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 17(1), pages 27-46, March.
    7. Charles Z. Liu & Chris F. Kemerer & Michael D. Smith, 2007. "Standards Competition In The Presence Of Digital Conversion Technology: An Empirical Analysis Of The Flash Memory Card Market," Working Papers 07-17, NET Institute, revised Sep 2007.
    8. Knittel, Christopher R. & Stango, Victor, 2011. "Strategic incompatibility in ATM markets," Journal of Banking & Finance, Elsevier, vol. 35(10), pages 2627-2636, October.
    9. Christopher R. Knittel & Victor Stango, 2003. "Compatibility and pricing with indirect network effects: evidence from ATMs," Working Paper Series WP-03-33, Federal Reserve Bank of Chicago.
    10. Banerji, A. & Dutta, Bhaskar, 2009. "Local network externalities and market segmentation," International Journal of Industrial Organization, Elsevier, vol. 27(5), pages 605-614, September.
    11. Xinxin Li & Yuxin Chen, 2012. "Corporate IT Standardization: Product Compatibility, Exclusive Purchase Commitment, and Competition Effects," Information Systems Research, INFORMS, vol. 23(4), pages 1158-1174, December.
    12. Qi Wang & Huazhong Zhao & Jinhong Xie, 2016. "Intra-Standard Competition: The Joint Impact of an Installed-User Base and a Supporting-Firm Base in Markets with Network Effects," Customer Needs and Solutions, Springer;Institute for Sustainable Innovation and Growth (iSIG), vol. 3(3), pages 159-174, December.
    13. Irfan Kanat & T. S. Raghu & Ajay Vinzé, 2020. "Heads or Tails? Network Effects on Game Purchase Behavior in The Long Tail Market," Information Systems Frontiers, Springer, vol. 22(4), pages 803-814, August.
    14. Binken, J.L.G. & Stremersch, S., 2008. "The Effect of Superstar Software on Hardware Sales in System Markets," ERIM Report Series Research in Management ERS-2008-025-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    15. Daniel Birke, 2009. "The Economics Of Networks: A Survey Of The Empirical Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 23(4), pages 762-793, September.
    16. 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.
    17. Knittel Christopher R. & Stango Victor, 2008. "Incompatibility, Product Attributes and Consumer Welfare: Evidence from ATMs," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 8(1), pages 1-42, January.
    18. Bruno Jullien & Alessandro Pavan & Marc Rysman, 2021. "Two-sided markets, pricing, and network effects," Post-Print hal-03828345, HAL.
    19. Heli Koski & Tobias Kretschmer, 2004. "Survey on Competing in Network Industries: Firm Strategies, Market Outcomes, and Policy Implications," Journal of Industry, Competition and Trade, Springer, vol. 4(1), pages 5-31, March.
    20. Baraldi, A. Laura, 2008. "Network Externalities and Critical Mass in the Mobile Telephone Network: a Panel Data Estimation," MPRA Paper 13373, University Library of Munich, Germany.

    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:svcbiz:v:4:y:2010:i:2:p:89-103. 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.