Unpaid crowd complementors: The platform network effect mirage

Strategic Management Journal

Volumn 36, Issue 12, 2015, Pages 1761-1777

  Boudreau, Kevin J ^a   Jeppesen, Lars B ^b  

^a LONDON BUSINESS SCHOOL   (United Kingdom)

^b BOCCONI UNIVERSITY   (Italy)

Author keywords

crowds; digital innovation; heterogeneous motivations; innovation; network effects; platforms

Indexed keywords

MANAGEMENT; PLANNING;

CROWDS; DIGITAL INNOVATIONS; HETEROGENEOUS SOURCES; MULTIPLAYER GAMES; NETWORK EFFECTS; PLATFORMS; PRICE SYSTEM; ZERO EFFECTS;

MOTIVATION;

EID: 84945450520     PISSN: 01432095     EISSN: 10970266     Source Type: Journal    
DOI: 10.1002/smj.2324     Document Type: Article

References (67)

1. Adner R, Kapoor R,. 2010. Value creation in innovation ecosystems: how the structure of technological interdependence affects firm performance in new technology generations. Strategic Management Journal 31: 306-333.
2. Afuah A, Tucci C,. 2012. Crowdsourcing as a solution to distant search. Academy of Management Review 37 (3): 355-375.
3. Aghion P, Bloom N, Blundell R,. 2005. Competition and innovation: an inverted-U relationship. Quarterly Journal of Economics 120 (2): 701-728.
4. Aral S, Van Alstyne M,. 2010. The Diversity-Bandwidth Trade-off. American Journal of Sociology 117 (1): 90-171.
5. Augereau A, Greenstein S, Rysman M,. 2006. Coordination versus differentiation in a standards war: 56k modems. RAND Journal of Economics 37 (4): 887-909.
6. Baldwin CY, Woodard CJ,. 2009. The architecture of platforms: a unified view. In Platforms, Markets and Innovation, Gawer A, (ed). Edward Elgar: Cheltenham, UK; 19-44.
7. Bayus B., 2013. Crowdsourcing new product ideas over time: an analysis of the Dell IdeaStorm Community. Management Science 59: 226-244.
8. Belenzon S, Schankerman M,. 2014. Motivation and sorting of human capital in open innovation. Strategic Management Journal (Forthcoming).
9. Belleflamme P, Toulemonde E,. 2009. Negative intra-group externalities in two-sided markets. International Economic Review 50: 245-272.
10. Boudreau K,. 2010. Open platform strategies and innovation: granting access vs. devolving control. Management Science 56 (10): 1849-1872.
11. Boudreau K,. 2012. Let a thousand flowers bloom? An early look at large numbers of software 'apps' developers and patterns of innovation. Organization Science 23 (5): 1409-1427.
12. Boudreau K, Hagiu A,. 2009. Platforms rules: multi-sided platforms as regulators. In Platforms, Markets and Innovation, Gawer A, (ed). Edward Elgar: London, UK: 163-191.
13. Boudreau K, Lakhani K,. 2009. How to manage outside innovation: competitive markets or collaborative communities? MIT Sloan Management Review 50 (4): 69-75.
14. Bresnahan T,. 2002. The economics of the Microsoft antitrust case. Mimeo. Available at: http://www.stanford.edu/∼tbres/research.htm. Accessed January 14, 2014.
15. Bresnahan T, Greenstein S,. 1999. Technological competition and the structure of the computer industry. Journal of Industrial Economics 47 (1): 1-40.
16. Casadesus-Masanell R, Halaburda H,. 2014. When does a platform create value by limiting choice? Journal of Economics & Management Strategy 9 (4): 513-548.
17. Cennamo C, Santaló J,. 2013. Platform competition: strategic tradeoffs in platform markets. Strategic Management Journal 34 (11): 1331-1350.
18. Ching K., 2014. The clone wars: competitive dynamics in the Internet video industry. Available at SSRN: http://ssrn.com/abstract=2254988. Accessed June 1, 2014.
19. Clements MT, Ohashi H,. 2005. Indirect network effects and the product cycle: video games in the U.S., 1994-2002. Journal of Industrial Economics 53 (4): 515-542.
20. Corts KS, Lederman M,. 2009. Software exclusivity and the scope of indirect network effects in the U.S. home video game market. International Journal of Industrial Organization 27: 121-136.
21. Cusumano M, Mylonadis Y, Rosenbloom RS,. 1992. Strategic maneuvering and mass-market dynamics: the triumph of VHS over Beta. The Business History Review 66 (1): 51-94.
22. Davenport TH, Beck JC,. 2001. The Attention Economy: Understanding the New Currency of Business. Harvard Business School Press.
23. Dranove D, Gandal N,. 2003. The dvd-vs.-divx standard war: empirical evidence of network effects and preannouncement effects. Journal of Economics & Management Strategy 12 (3): 363-386.
24. Economides N,. 1996. Network externalities, complementarities, and invitations to enter. European Journal of Political Economy 12 (2): 211-233.
25. Eisenmann TR, Hagiu A,. 2008. Staging two-sided platforms. Harvard Business School Background Note 808-004.
26. Falkinger J,. 2008. Limited attention as a scarce resource in information-rich economies. The Economic Journal 118 (532): 1596-1620.
27. Farrell J, Klemperer P,. 2007. Coordination and lock-in: competition with switching costs and network effects. In Handbook of Industrial Organization (Volume 3), Armstrong M, Porter R, (eds). Elsevier: London, UK; 1967-2072; 3-31.
28. Garud R, Kumaraswamy A,. 1995. Technological and organizational designs to achieve economies of substitution. Strategic Management Journal 16: 93-110.
29. Gawer A, Cusumano MA,. 2002. Platform Leadership: How Intel, Microsoft, and Cisco Drive Industry Innovation. Harvard Business School Press: Boston, MA.
30. Herz JC,. 2002. Harnessing the hive: how online games drive networked innovation. Release 1.0 20 (9): 1-23.
31. Howe J., 2006. The rise of crowdsourcing. Wired Magazine 14 June. http://archive.wired.com/wired/archive/14.06/crowds.html.
32. Huberman BA, Romero DM, Wu F,. 2009. Crowdsourcing, attention and productivity. Journal of Information Science 56: 831-848.
33. Jeppesen LB, Frederiksen L,. 2006. Why do users contribute to firm-hosted user communities? The case of computer-controlled music instruments. Organization Science 17 (1): 45-63.
34. Johnson JP,. 2002. Open source software: private provision of a public good. Journal of Economics & Management Strategy 11: 637-662.
35. Katz ML, Shapiro C,. 1994. Systems competition and network effects. Journal of Economic Perspectives 8 (2): 93-115.
36. Lakhani K, Wolf R,. 2005. Why hackers do what they do: understanding motivation and effort in free/open source software projects. In Perspectives on Free and Open Source Software., Feller J, Fitzgerald B, Hissam S, Lakhani KR, (eds). MIT Press: Cambridge, MA: 3-21.
37. Langlois R, Robertson P,. 1992. Networks and innovation in a modular system: lessons from the microcomputer and stereo component industries. Research Policy 21: 287-313.
38. Lee Y, O'Connor G,. 2003. New product launch strategy for network effects products. Journal of the Academy of Marketing Science 31 (3): 241-255.
39. Lerner J, Tirole J,. 2002. Some simple economics of open source. Journal of Industrial Economics 50 (2): 197-234.
40. Mollick E., 2013. Filthy Lucre: what motivates the commercialization of innovations? 1 May 2013. Available at SSRN: http://ssrn.com/abstract=1742380. Accessed October 2, 2013.
41. Nair H, Chintagunta P, Dubé JP,. 2004. Empirical analysis of indirect network effects in the market for personal digital assistants. Quantitative Marketing and Economics 2: 23-58.
42. Nevo A,. 2000. A research assistant's guide to random coefficients discrete choice models of demand. Journal of Economics & Management Strategy 9 (4): 513-548.
43. Nieborg DB, van der Graaf S,. 2008. The mod industries? The industrial logic of non-market game production. European Journal of Cultural Studies 11 (2): 177-195.
44. Noe T, Parker G,. 2005. Winner take all: competition, strategy, and the structure of returns in the Internet economy. Journal of Economics & Management Strategy 14 (1): 141-164.
45. Osterloh M, Rota S,. 2007. Open source software development-Just another case of collective invention? Research Policy 36 (2): 157-171.
46. Parker G, Van Alstyne M,. 2005. Two-sided network effects: a theory of information products. Management Science 51 (10): 1494-1504.
47. Piezunka, H., Dahlander L., Forthcoming. Distant search, narrow attention: how crowding alters organizations' filtering of suggestions in crowdsourcing. Academy of Management Journal.
48. Postigo H., 2010. Mod development to the big leagues: exploring the space between mod developers and the game industry. First Monday (15): firstmonday.org
49. Raymond ES,. 1999. The Cathedral and the Bazaar: Musings on Linux and Open Source by an Accidental Revolutionary. O'Reilly: Cambridge, MA.
50. Restivo M, van de Rijt A,. 2012. Experimental study of informal rewards in peer production. PLoS ONE 7 (3): e34358.
51. Roberts JA, Hann I-H, Slaughter SA,. 2006. Understanding the motivations, participation, and performance of open source software developers: a longitudinal study of the Apache Projects. Management Science 52 (7): 984-999.
52. Rochet J, Tirole J,. 2003. Platform competition in two-sided markets. Journal of the European Economic Association 1 (4): 990-1029.
53. Rysman M,. 2004. Competition between networks: a study of the market for Yellow Pages. Review of Economic Studies 71: 483-512.
54. Rysman M,. 2009. The economics of two-sided markets. Journal of Economic Perspectives 23: 125-144.
55. Schilling MA,. 2002. Technology success and failure in winner-take-all markets: testing a model of technological lock out. Academy of Management Journal 45: 387-398.
56. Shankar V, Bayus BL,. 2003. Network effects and competition: an empirical analysis of the home video game industry. Strategic Management Journal 24 (4): 375-384.
57. Suarez F,. 2005. Network effects revisited: the role of strong ties in technology selection. Academy of Management Journal 48: 710-720.
58. Tucker C, Zhang J,. 2010. Growing two-sided networks by advertising the user base: a field experiment. Marketing Science 29 (5): 805-814.
59. Venkatraman N, Lee C,. 2004. Preferential linkage and network evolution: a conceptual model and empirical test in the US video game sector. Academy of Management Journal 47 (6): 876-892.
60. von Hippel E,. 2005. Democratizing Innovation. MIT Press: Cambridge, MA.
61. von Hippel E, Katz R,. 2002. Shifting innovation to users via toolkits. Management Science 48 (7): 821-833.
62. von Hippel E, von Krogh G,. 2003. Open source software and the "private-collective" innovation model: issues for organization science. Organization Science 14 (2): 209-223.
63. Wooldridge J,. 1999. Distribution-free estimation of some nonlinear panel data models. Journal of Econometrics 90 (1): 77-97.
64. Wooldridge J,. 2010. Econometric Analysis of Cross Section and Panel Data (2nd edn). MIT Press.
65. Wu F, Huberman A,. 2010. A Persistence Paradox. First Monday 15 (1). Cambridge, Mass.
66. Zhang X, Zhu F,. 2011. Group size and incentives to contribute: a natural experiment at Chinese Wikipedia. American Economic Review 101 (4): 1601-1615.
67. Zhu F, Iansiti M,. 2011. Entry into platform-based markets. Strategic Management Journal 33 (1): 88-106.