Abstract
| Original language | English |
|---|---|
| Article number | 603 |
| Journal | Electronic Commerce Research and Applications |
| Volume | 14 |
| Issue number | 5 |
| Pages (from-to) | 305-318 |
| Number of pages | 14 |
| ISSN | 1567-4223 |
| DOIs | |
| Publication status | Published - 2015 |
Cite this
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The New Normal : Market Cooperation in the Mobile Payments Ecosystem. / Henningsson, Stefan; Hedman, Jonas.
In: Electronic Commerce Research and Applications, Vol. 14, No. 5, 603, 2015, p. 305-318.Research output: Contribution to journal › Journal article › Research › peer-review
TY - JOUR
T1 - The New Normal
T2 - Market Cooperation in the Mobile Payments Ecosystem
AU - Henningsson, Stefan
AU - Hedman, Jonas
PY - 2015
Y1 - 2015
N2 - The introduction of mobile payments is one of many innovations that are changing the payment market. This change involves new payment service providers entering this lucrative market, and meanwhile, the existing stakeholders are trying to defend their oligopolistic positions. The mobile payment market cooperation (MPMC) framework in this article shows how the digitalization of payments, as a technology innovation, affects the competition and collaboration among traditional and new stakeholders in the payment ecosystem at three levels of analysis. We do this by integrating theories of market cooperation with the literatures on business and technology ecosystems. The MPMC framework depicts technology-based market cooperation strategies in the context of recent battles in the mobile payments ecosystem. In these battles, the competitors can use technology either in defensive build-and-defend strategies to protect market position, or in offensive battering-ram strategies for ecosystem entry or position improvement. Successful strategies can lead to: (1) Ricardian rents, based on operational efficiency advantages traceable to the firm’s position relative to suppliers and monopoly power; and (2) Bainian rents, resulting from the extent the firm is able to resist price competition in the market. We validate the framework that we propose through three case studies of technology-based market cooperation in the mobile payments ecosystem.
AB - The introduction of mobile payments is one of many innovations that are changing the payment market. This change involves new payment service providers entering this lucrative market, and meanwhile, the existing stakeholders are trying to defend their oligopolistic positions. The mobile payment market cooperation (MPMC) framework in this article shows how the digitalization of payments, as a technology innovation, affects the competition and collaboration among traditional and new stakeholders in the payment ecosystem at three levels of analysis. We do this by integrating theories of market cooperation with the literatures on business and technology ecosystems. The MPMC framework depicts technology-based market cooperation strategies in the context of recent battles in the mobile payments ecosystem. In these battles, the competitors can use technology either in defensive build-and-defend strategies to protect market position, or in offensive battering-ram strategies for ecosystem entry or position improvement. Successful strategies can lead to: (1) Ricardian rents, based on operational efficiency advantages traceable to the firm’s position relative to suppliers and monopoly power; and (2) Bainian rents, resulting from the extent the firm is able to resist price competition in the market. We validate the framework that we propose through three case studies of technology-based market cooperation in the mobile payments ecosystem.
KW - Case Study
KW - iZettle
KW - Market Cooperation
KW - Mobile Payment
KW - Payment Ecosystem
KW - Payment Markets
KW - Paypal
KW - SMS Payment
UR - http://sfx-45cbs.hosted.exlibrisgroup.com/45cbs?url_ver=Z39.88-2004&url_ctx_fmt=info:ofi/fmt:kev:mtx:ctx&ctx_enc=info:ofi/enc:UTF-8&ctx_ver=Z39.88-2004&rfr_id=info:sid/sfxit.com:azlist&sfx.ignore_date_threshold=1&rft.object_id=111030117704000&rft.object_portfolio_id=&svc.holdings=yes&svc.fulltext=yes
U2 - 10.1016/j.elerap.2015.03.005
DO - 10.1016/j.elerap.2015.03.005
M3 - Journal article
VL - 14
SP - 305
EP - 318
JO - Electronic Commerce Research and Applications
JF - Electronic Commerce Research and Applications
SN - 1567-4223
IS - 5
M1 - 603
ER -