How to Encourage Complementors in Platform Ecosystems? A Case Study of MILLA

Abstract

Purpose: The purpose of this study is to examine heterogeneity in platform ecosystems to better understand incentive structures of complementors. It is attempted to explore factors, which might affect participation of different types of complementors on digital platforms. Design/methodology/approach: This research follows a case study in approach with a mono method research design, consisting of qualitative interviews to further explore the research area. The starting point of this master’s thesis was the academic literature in order to analyse studies that examined potential economic and technical factors, which could affect complementors’ innovation efforts. Findings: In total, nine propositions could be defined that relate to complementors’ responses towards economic and technical requirements on digital platforms. This study confirms heterogeneity of complementors in platform ecosystems by finding different goals expressed among co-opetition and non-co-opetition complementors. That said, it was found that co-opetition complementors are primarily revenue-driven, while, non-co-opetition complementors value the interaction with the user base on a platform. Research implications: This research adds nuance to existing theories in academic literature. For example, it suggests extending the theory of indirect network effects with respect to monetary incentives of co-opetition complementors. Practical implications: A platform governance framework has been proposed which serves to support platform owners in creating governance strategies to align heterogeneous interests of complementors in their platform ecosystems