Does platform owner’s entry crowd out innovation? Evidence from Google photos


Förderer, Jens ; Kude, Thomas ; Mithas, Sunil ; Heinzl, Armin



DOI: https://doi.org/10.1287/isre.2018.0787
URL: https://pubsonline.informs.org/doi/10.1287/isre.20...
Additional URL: https://ssrn.com/abstract=2805510
Document Type: Article
Year of publication: 2018
The title of a journal, publication series: Information systems research : ISR
Volume: 29
Issue number: 2
Page range: 444-460
Place of publication: Linthicum, MD ; Hannover, MD
Publishing house: INFORMS
ISSN: 1047-7047 , 1526-5536
Related URLs: https://doi.org/10.1287/isre.2018.0787
Publication language: German
Institution: Außerfakultäre Einrichtungen > Graduate School of Economic and Social Sciences - CDSB (Business Studies)
Business School > ABWL, Organisation u. Wirtschaftsinformatik I (Heinzl)
Subject: 330 Economics
Abstract: We study how platform owners’ decision to enter complementary markets affects innovation in the ecosystem surrounding the platform. Despite heated debates on the behavior of platform owners toward complementors, relatively little is known about the mechanisms linking platform owners’ entry and complementary innovation. We exploit Google’s 2015 entry into the market for photography apps on its own Android platform as a quasi-experiment. We conclude based on our analyses of a time-series panel of 6,620 apps that Google’s entry was associated with a substantial increase in complementary innovation. We estimate that the entry caused a 9.6% increase in the likelihood of major updates for apps affected by Google’s entry, compared to similar but not affected apps. Further analyses suggest that Google’s entry triggered complementary innovation because of the increased consumer attention for photography apps, instead of competitive “racing” or “Red Queen” effects. This attention spillover effect was particularly pronounced for larger and more diversified complementors. The study advances our understanding of the effects of platform owner’s entry, explicates the complex mechanisms that shape complementary innovation, and adds empirical evidence to the debate on regulating platforms.
Additional information: The online appendix is available, s. "Verwandte URLs"

Dieser Eintrag ist Teil der Universitätsbibliographie.




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Förderer, Jens ORCID: 0000-0002-3090-4559 ; Kude, Thomas ; Mithas, Sunil ; Heinzl, Armin (2018) Does platform owner’s entry crowd out innovation? Evidence from Google photos. Information systems research : ISR Linthicum, MD ; Hannover, MD 29 2 444-460 [Article]


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