Journal article

Platform Governance Design in Platform Ecosystems: Implications for Complementors' Multihoming Decision

Liang Chen, Jingtao Yi, Sali Li, Tony W Tong

JOURNAL OF MANAGEMENT | SAGE PUBLICATIONS INC | Published : 2021

Abstract

Extant platform research focuses on how platform owners’ governance behaviors directly affect complementors. This study explicates the multilateral interdependence among different groups of producers within a platform ecosystem. We theorize about how platform owners’ governance design may create frictions between platform providers and complementors. While open governance grants greater autonomy to platform providers, it also cultivates a more complex ecosystem for complementors. Since ecosystem complexity raises the cost of product customization, complementors will be less willing to port an existing complement to a more complex ecosystem, that is, less likely to multihome. The negative eff..

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University of Melbourne Researchers

Grants

Awarded by University of Melbourne Early Career Researcher Grant


Awarded by National Natural Science Foundation of China


Funding Acknowledgements

The authors are grateful for the guidance by editor William Schulze and two reviewers, Carmelo Cennamo, and participants at the Academy of Management Surrey Conference. We acknowledge support from the University of Melbourne Early Career Researcher Grant (ECR0182020), National Natural Science Foundation of China (71873136), and University of South Carolina Center for International Business Education and Research (CIBER) grants.