Skip to main content

Platform Ecosystem Orchestration for Efficiency, Development, and Innovation

  • Chapter
  • First Online:
Book cover Collaborative Value Co-creation in the Platform Economy

Part of the book series: Translational Systems Sciences ((TSS,volume 11))

Abstract

Platform research has expanded its focus from management of technology domains towards the service of a business. Digital service platforms facilitate ecosystems of participants and compete against each other. Platform ecosystems cannot be managed in a goal-oriented fashion because the number of actors, transactions, and relationships increases beyond the ability of what the platform owner can handle. Instead, platform ecosystems can be orchestrated by designing processes taking place among participants. In this conceptual paper, we present four service platform categories and three platform ecosystem orchestration modes for platform owners. In conclusion, we suggest that platform ecosystems around the service platform require simultaneous orchestration of efficiency, development, and innovation in order to attract and lock-in end users, facilitate transactions, and create novel offerings.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 109.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 139.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 139.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Alstyne, V., Eisenmann, T., Parker, G., & Van Alstyne, M. (2011). Platform envelopment. Strategic Management Journal, 32(May 2007), 1270–1285.

    Google Scholar 

  • Armstrong, M. (2006). Competition in two-sided markets. The Rand Journal of Economics. http://onlinelibrary.wiley.com/doi/10.1111/j.1756-2171.2006.tb00037.x/abstract

  • Bertalanffy, L. V. (1969). General system theory; Foundations, development, applications. New York: G. Braziller.

    Google Scholar 

  • Ceccagnoli, M., Forman, C., Huang, P., & Wu, D. J. (2012). Cocreation of value in a platform ecosystem: The case of enterprise software. MIS Quarterly, 36(1), 263–290.

    Google Scholar 

  • Chandler, A. D. (1962). Strategy and structure: Chapters in the history of the industrial enterprise. Cambridge: MIT Press.

    Google Scholar 

  • Checkland, P., & Scholes, J. (1990). Soft systems methodology in action. New York: Wiley.

    Google Scholar 

  • Chesbrough, H. (2011). Open services innovation. San Francisco: Jossey-Brass.

    Google Scholar 

  • Cusumano, M. A., & Gawer, A. (2002). The elements of platform leadership. MIT Sloan Management Review, 43(3), 51–58.

    Google Scholar 

  • Davies, M., Pitt, L., Shapiro, D., & Watson, R. (2005). Betfair.com: Five technology forces revolutionize worldwide wagering. European Management Journal, 23(5), 533–541.

    Article  Google Scholar 

  • Desjardins, J. (2017). RANKED: The most valuable brands in the world. Business Insider.com. http://www.businessinsider.com/most-valuable-brands-ranked?r=US&IR=T&IR=T

  • Dhanaraj, C., & Parkhe, A. (2006). Orchestrating innovation networks. Academy of Management Review, 31(3), 659–669.

    Article  Google Scholar 

  • Eisenmann, T. R. (2008). Managing proprietary and shared platforms. California Management Review, 50(4), 31–54.

    Article  Google Scholar 

  • Eisenmann, T. R., Parker, G., & Van Alstyne, M. (2008). Opening platforms: How, when and why? Harvard Business School Working Papers, 09–030.

    Google Scholar 

  • Evans, D., Hagiu, A., & Schmalensee, R. (2005). A survey of the economic role of software platforms in computer-based industries. CESifo Economic Studies, 51(2–3), 189–224.

    Article  Google Scholar 

  • Gawer, A., & Cusumano, M. A. (2002). Platform leadership: How Intel, Microsoft, and Cisco drive industry innovation. Boston: Harvard Business School Press.

    Google Scholar 

  • Gawer, A., & Cusumano, M. A. (2008). How companies become platform leaders. MIT Sloan Management Review, 49(2), 28–35.

    Google Scholar 

  • Gawer, A., & Cusumano, M. A. (2014). Industry platforms and ecosystem innovation. Journal of Product Innovation Management, 31(3), 417–433.

    Article  Google Scholar 

  • Gawer, A., & Henderson, R. (2007). Platform owner entry and innovation in complementary markets: Evidence from Intel. Journal of Economics & Management Strategy, 16(1), 1–34.

    Article  Google Scholar 

  • Gueguen, G., & Isckia, T. (2011). The borders of mobile handset ecosystems: Is coopetition inevitable? Telematics and Informatics, 28(1), 5–11.

    Article  Google Scholar 

  • Hänninen, M., Smedlund, A., & Mitronen, L. (2017). Digitalization in retailing: Multi-sided platforms as drivers of industry transformation. Baltic Journal of Management, BJM-04-2017-0109.

    Google Scholar 

  • Hanssen, G. K. (2012). A longitudinal case study of an emerging software ecosystem: Implications for practice and theory. Journal of Systems and Software, 85(7), 1455–1466.

    Article  Google Scholar 

  • Iansiti, M., & Levien, R. (2004). Strategy as ecology. Harvard Business Review, 82(3), 68–78.

    Google Scholar 

  • Kijima, K., & Arai, Y. (2016). Value co-creation process and value orchestration platform. In S. Kwan (Ed.), Global perspectives on service science: Japan. New York: Springer.

    Google Scholar 

  • Kilduff, M., & Tsai, W. (2003). Social networks and organizations. London/Thousand Oaks: SAGE.

    Book  Google Scholar 

  • Lusch, R. F., & Nambisan, S. (2013). Service innovation: A service-dominant (S-D) logic perspective service. MIS Quarterly. http://air.eller.arizona.edu/docs/papers/2012/Service_Innovation_Lusch_Nambisan.pdf

  • Maturana, H., & Varela, F. J. (1980). Autopoiesis and cognition: The realisation of the living. London: Reidl.

    Book  Google Scholar 

  • McIntyre, D. P., & Srinivasan, A. (2016). Networks, platforms, and strategy: Emerging views and next steps. Strategic Management Journal (in Press).

    Article  Google Scholar 

  • Moore, J. F. (1996). The death of competition: Leadership and strategy in the age of business ecosystems. Harper Business. http://www.getcited.org/pub/100107305

  • Moore, J. (2006). Business ecosystems and the view from the firm. Antitrust Bull. http://heinonlinebackup.com/hol-cgi-bin/get_pdf.cgi?handle=hein.journals/antibull51&section=9

  • Nelson, R. R., & Winter, S. G. (1982). An evolutionary theory of economic change. Cambridge, MA: Belknap.

    Google Scholar 

  • Nishino, N., Wang, S., Tsuji, N., Kageyama, K., & Ueda, K. (2012). Categorization and mechanism of platform-type product-service systems in manufacturing. CIRP Annals – Manufacturing Technology, 61(1), 391–394.

    Article  Google Scholar 

  • Normann, R., & Ramirez, R. (1993). From value chain to value constellation: Designing interactive strategy. Harvard Business Review, 71(4), 39–51.

    Google Scholar 

  • Parker, G., & Van Alstyne, M. (2008). Managing platform ecosystems. ICIS 2008 Proceedings. 53. See: http://aisel.aisnet.org/icis2008/53/

  • Penrose, E. T. (1959). The theory of the growth of the firm. New York: Wiley.

    Google Scholar 

  • Prigogine, I. (1976). Order through fluctuations: Self-organization and social systems. In E. Jantsch & C. H. Waddington (Eds.), Evolution and eonsciousness: Human systems in transition. Reading: Addison-Wesley.

    Google Scholar 

  • Ramirez, R. (1999). Value co-production: Intellectual origins and implications for practice and research. Strategic Management Journal, 20, 49–65.

    Article  Google Scholar 

  • Schumpeter, J. A. (1934). The theory of economic development: An inquiry into profits, capital, credit, interest and the business cycle (2nd ed.). Cambridge, MA: Harvard University Press.

    Google Scholar 

  • Schumpeter, J. A. (1942). Capitalism, socialism and democracy. London: Unwin University Books.

    Google Scholar 

  • Scott, W. R. (2003). Rational, natural, and open systems (5th ed.). Upper Saddle River: Prentice Hall.

    Google Scholar 

  • Smedlund, A. (2009a). Network approach to fundamental tasks in knowledge-based organizations. Dr. Sc. dissertation, Helsinki University of Technology, Faculty of Information and Natural Sciences, Department of Industrial Engineering and Management. http://lib.tkk.fi/Diss/2009/

  • Smedlund, A. (2009b). Social network structures for explicit, tacit and potential knowledge. International Journal of Knowledge Management, 5(1), 78–87.

    Article  Google Scholar 

  • Smedlund, A. (2012). Value cocreation in service platform business models. Service Science, 4(1), 79–88.

    Article  Google Scholar 

  • Ståhle, P., Ståhle, S., & Pöyhönen, A. (2003). Analyzing dynamic intellectual capital: System-based theory and application (Acta Universitatis Lappeenrantaensis 152). Lappeenranta: Lappeenranta University of Technology., http://scholar.google.com/scholar?hl=en&btnG=Search&q=intitle:Lappeenrannan+teknillinen+yliopisto#9

  • Suarez, F. F., & Kirtley, J. (2012). Dethroning an established platform dethroning an established platform, 53(53414).

    Google Scholar 

  • Tee, R., & Gawer, A. (2009). Industry architecture as a determinant of successful platform strategies: A case study of the i-mode mobile internet service. European Management Review, 6(4), 217–232.

    Article  Google Scholar 

  • Teece, D. J. (2007). Explicating dynamic capabilities: The nature and microfoundations of (sustainable) enterprise performance. (N. E. Al, Ed.) Strategic Management Journal, 1350(August), 1319–1350.

    Article  Google Scholar 

  • Thomas, L. D., Autio, E., & Gann, D. (2014). Architectural leverage: Putting platforms in context. The Academy of Management Perspectives, 28(2), 198–219.

    Article  Google Scholar 

  • Tiwana, A. (2014). Platform ecosystems: Aligning architecture, governance, and strategy. Waltham: Morgan Kaufmann.

    Google Scholar 

Download references

Acknowledgement

This research has received financial support from the European Union Horizon 2020 Programme under grant agreement no. 688203.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Anssi Smedlund .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2018 Springer Nature Singapore Pte Ltd.

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Smedlund, A., Faghankhani, H., Ikävalko, H., Turkama, P. (2018). Platform Ecosystem Orchestration for Efficiency, Development, and Innovation. In: Smedlund, A., Lindblom, A., Mitronen, L. (eds) Collaborative Value Co-creation in the Platform Economy. Translational Systems Sciences, vol 11. Springer, Singapore. https://doi.org/10.1007/978-981-10-8956-5_2

Download citation

Publish with us

Policies and ethics