The effects of relinquishing control in platform ecosystems: Implications from a policy change on kickstarter

2015 International Conference on Information Systems: Exploring the Information Frontier, ICIS 2015

Volumn , Issue , 2015, Pages

  Wessel, Michael ^a   Thies, Ferdinand ^a   Benlian, Alexander ^a  

^a DARMSTADT UNIVERSITY OF TECHNOLOGY   (Germany)

Author keywords

Crowdfunding; Input control; Natural experiment; Platform ecosystems; Platform openness; Policy change; Two sided markets

Indexed keywords

CROWDSOURCING; ECOSYSTEMS; INFORMATION SYSTEMS; INFORMATION USE;

CROWDFUNDING; NATURAL EXPERIMENT; PLATFORM ECOSYSTEMS; PLATFORM OPENNESS; POLICY CHANGES; TWO-SIDED MARKETS;

QUALITY CONTROL;

EID: 85126615242     PISSN: None     EISSN: None     Source Type: Conference Proceeding    
DOI: None     Document Type: Conference Paper

References (80)

1. Agrawal, A., Catalini, C., and Goldfarb, A. 2010. "Entrepreneurial Finance and the Flat-World Hypothesis: Evidence from Crowd-Funding Entrepreneurs in the Arts."
2. Agrawal, A.K., Catalini, C., and Goldfarb, A. 2011. "The Geography of Crowdfunding," National Bureau of Economic Research Working Paper Series (No. 16820).
3. Ahlers, G.K.C., Cumming, D., Günther, C., and Schweizer, D. 2012. "Signaling in Equity Crowdfunding," Working papers).
4. Akerlof, G.A. 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics), pp. 488-500.
5. Allison, T.H., McKenny, A.F., and Short, J.C. 2013. "The Effect of Entrepreneurial Rhetoric on Microlending Investment: An Examination of the Warm-Glow Effect," Journal of Business Venturing (28:6), 11//, pp. 690-707.
6. Anderson, C. 2006. The Long Tail: Why the Future of Business Is Selling Less of More. Hyperion.
7. Andreoni, J. 2006. "Philanthropy," in Handbook of the Economics of Giving, Altruism and Reciprocity, K. Serge-Christophe and Y. Jean Mercier (eds.). Elsevier, pp. 1201-1269.
8. Armstrong, M. 2006. "Competition in Two-Sided Markets," RAND Journal of Economics (37:3), Autumn, pp. 668-691.
9. Bakos, J.Y. 1997. "Reducing Buyer Search Costs: Implications for Electronic Marketplaces," Management Science (43:12), Dec, pp. 1676-1692.
10. Bakos, Y., and Katsamakas, E. 2004. "Design and Ownership of Two-Sided Networks: Implications for Internet Intermediaries," Journal of Management Information Systems (25:2), pp. 171-202.
11. Bayus, B.L. 2013. "Crowdsourcing New Product Ideas over Time: An Analysis of the Dell Ideastorm Community," Management Science (59:1), Jan, pp. 226-244.
12. Belleflamme, P., Lambert, T., and Schwienbacher, A. 2014. "Crowdfunding: Tapping the Right Crowd," Journal of Business Venturing).
13. Benlian, A., Hilkert, D., and Hess, T. 2015. "How Open Is This Platform? The Meaning and Measurement of Platform Openness from the Complementors' Perspective," Journal of Information Technology (30:3), pp. 209-228.
14. Boudreau, K. 2010. "Open Platform Strategies and Innovation: Granting Access Vs. Devolving Control," Management Science (56:10), pp. 1849-1872.
15. Boudreau, K.J. 2012. "Let a Thousand Flowers Bloom? An Early Look at Large Numbers of Software App Developers and Patterns of Innovation," Organization Science (23:5), pp. 1409-1427.
16. Bresnahan, T., and Greenstein, S. 2014. "Mobile Computing: The Next Platform Rivalry," American Economic Review (104:5), pp. 475-480.
17. Burtch, G., Ghose, A., and Wattal, S. 2013. "An Empirical Examination of the Antecedents and Consequences of Contribution Patterns in Crowd-Funded Markets," Information Systems Research (24:3), pp. 499-519.
18. Burtch, G., Ghose, A., and Wattal, S. 2015. "The Hidden Cost of Accommodating Crowdfunder Privacy Preferences: A Randomized Field Experiment," Management Science).
19. Cameron, A.C., and Trivedi, P.K. 2005. Microeconometrics: Methods and Applications. Cambridge University Press.
20. Cardinal, L.B., Sitkin, S.B., and Long, C.P. 2004. "Balancing and Rebalancing in the Creation and Evolution of Organizational Control," Organization Science (15:4), pp. 411-431.
21. Chen, X.-P., Yao, X., and Kotha, S. 2009. "Entrepreneur Passion and Preparedness in Business Plan Presentations: A Persuasion Analysis of Venture Capitalists' Funding Decisions," Academy of Management Journal (52:1), pp. 199-214.
22. Chevalier, J.A., and Mayzlin, D. 2006. "The Effect of Word of Mouth on Sales: Online Book Reviews," Journal of Marketing Research (43:3), pp. 345-354.
23. Choudhury, V., and Sabherwal, R. 2003. "Portfolios of Control in Outsourced Software Development Projects," Information Systems Research (14:3), pp. 291-314.
24. Claussen, J., Kretschmer, T., and Mayrhofer, P. 2013. "The Effects of Rewarding User Engagement: The Case of Facebook Apps," Information Systems Research (24:1), Mar, pp. 186-200.
25. Connelly, B.L., Certo, S.T., Ireland, R.D., and Reutzel, C.R. 2011. "Signaling Theory: A Review and Assessment," Journal of Management (37:1), pp. 39-67.
26. Coughlan, P.J. 2004. "The Golden Age of Home Video Games: From the Reign of Atari to the Rise of Nintendo," Harvard Business School Case Study 9-704 (487).
27. Cusumano, M.A., and Gawer, A. 2002. "The Elements of Platform Leadership," MIT Sloan Management Review (43:3), pp. 51-60.
28. de Reuver, M., and Bouwman, H. 2012. "Governance Mechanisms for Mobile Service Innovation in Value Networks," Journal of Business Research (65:3), pp. 347-354.
29. Duan, W., Gu, B., and Whinston, A.B. 2008. "The Dynamics of Online Word-of-Mouth and Product Sales-An Empirical Investigation of the Movie Industry," Journal of Retailing (84:2), pp. 233-242.
30. Eisenhardt, K.M. 1985. "Control: Organizational and Economic Approaches," Management science (31:2), pp. 134-149.
31. Eisenmann, T., Parker, G., and Van Alstyne, M.W. 2006. "Strategies for Two-Sided Markets," Harvard Business Review (84:10).
32. Elberse, A. 2008. "Should You Invest in the Long Tail?," Harvard Business Review (86:7/8), p. 88.
33. Ghazawneh, A., and Henfridsson, O. 2013. "Balancing Platform Control and External Contribution in Third Party Development: The Boundary Resources Model," Information Systems Journal (23:2), pp. 173-192.
34. Goldbach, T., Kemper, V., and Benlian, A. 2014. "Mobile Application Quality and Platform Stickiness under Formal Vs. Self-Control - Evidence from an Experimental Study," in: International Conference on Information Systems (ICIS). Auckland, New Zealand.
35. Goldfarb, A., and Tucker, C.E. 2011. "Privacy Regulation and Online Advertising," Management Science (57:1), Jan, pp. 57-71.
36. Gorman, M., and Sahlman, W.A. 1989. "What Do Venture Capitalists Do?," Journal of Business Venturing (4:4), pp. 231-248.
37. Greene, W. 2008. "Functional Forms for the Negative Binomial Model for Count Data," Economics Letters (99:3), Jun, pp. 585-590.
38. Gulati, R., Puranam, P., and Tushman, M. 2012. "Meta Organization Design: Rethinking Design in Interorganizational and Community Contexts," Strategic Management Journal (33:6), pp. 571-586.
39. Hagiu, A. 2011. Quantity Vs. Quality: Exclusion by Platforms with Networks Effects.
40. Huang, Y., Singh, P.V., and Srinivasan, K. 2014. "Crowdsourcing New Product Ideas under Consumer Learning," Management Science (60:9), Sep, pp. 2138-2159.
41. Hui, J.S., Greenberg, M.D., and Gerber, E.M. 2014. "Understanding the Role of Community in Crowdfunding Work," in: Proceedings of the 17th ACM conference on Computer supported cooperative work & social computing. Baltimore, Maryland, USA: ACM, pp. 62-74.
42. Jeffries, A. 2014. "Kickstarter's Next Campaign: The Original Crowdfunder Is Loosening Its Rules and Opening the Floodgates." Retrieved 2015-03-01 from http://www.theverge.com/2014/6/3/5775548/kickstarter-s-next-campaign
43. Kelion, L. 2014. "Kickstarter Relaxes Crowdfunding Project Rules." Retrieved 2015-03-17 from http://www.bbc.com/news/technology-27699267
44. Kickstarter, Inc. 2014. "Introducing Launch Now and Simplified Rules." Retrieved 2014-10-10 from https://www.kickstarter.com/blog/introducing-launch-now-And-simplified-rules-0
45. Kickstarter, Inc. 2015a. "Creator Handbook." Retrieved 2015-03-20 from https://www.kickstarter.com/help/handbook/
46. Kickstarter, Inc. 2015b. "How to Get Featured on Kickstarter." Retrieved 2015-08-20 from https://www.kickstarter.com/blog/how-To-get-featured-on-kickstarter
47. Kickstarter, Inc. 2015c. "Introducing Spotlight." Retrieved 2015-03-28 from https://www.kickstarter.com/blog/introducing-spotlight
48. Kickstarter, Inc. 2015d. "Kickstarter Stats." Retrieved 2015-03-23 from https://www.kickstarter.com/help/stats
49. Kirmani, A., and Rao, A.R. 2000. "No Pain, No Gain: A Critical Review of the Literature on Signaling Unobservable Product Quality," Journal of Marketing (64:2), pp. 66-79.
50. Kirsch, L.J. 1996. "The Management of Complex Tasks in Organizations: Controlling the Systems Development Process," Organization Science (7:1), pp. 1-21.
51. Kirsch, L.J. 1997. "Portfolios of Control Modes and Is Project Management," Information Systems Research (8:3), pp. 215-239.
52. Kirsch, L.J., Sambamurthy, V., Ko, D.-G., and Purvis, R.L. 2002. "Controlling Information Systems Development Projects: The View from the Client," Management Science (48:4), pp. 484-498.
53. Kuppuswamy, V., and Bayus, B.L. 2014. "Crowdfunding Creative Ideas: The Dynamics of Project Backers in Kickstarter," Working papers/UNC Kenan-Flagler Research Paper No. 2013-15).
54. Lecher, C. 2014. "How Did a $10 Potato Salad Kickstarter Raise More Than $30,000?" Retrieved 2015-03-15 from http://www.theverge.com/2014/7/7/5878093/kickstarter-potato-salad
55. Lin, M., Prabhala, N.R., and Viswanathan, S. 2013. "Judging Borrowers by the Company They Keep: Friendship Networks and Information Asymmetry in Online Peer-To-Peer Lending," Management Science (59:1), pp. 17-35.
56. Lin, M., and Viswanathan, S. 2014. "Home Bias in Online Investments: An Empirical Study of an Online Crowdfunding Market," Available at SSRN 2219546).
57. Liu, L., Borman, M., and Gao, J. 2014. "Delivering Complex Engineering Projects: Reexamining Organizational Control Theory," International Journal of Project Management (32:5), pp. 791-802.
58. Long, J.S. 1997. Regression Models for Categorical and Limited Dependent Variables. SAGE Publications.
59. Mitroff, S. 2012. "Android Is Bigger, but Here's Why Apple Is Still the Undisputed App Cash King." Retrieved 2015-04-02 from http://www.wired.com/2012/12/ios-vs-Android/
60. Mollick, E. 2014. "The Dynamics of Crowdfunding: An Exploratory Study," Journal of Business Venturing (29:1), Jan, pp. 1-16.
61. Ouchi, W.G. 1979. "A Conceptual Framework for the Design of Organizational Control Mechanisms," Management Science (25:9), pp. 833-848.
62. Poetz, M.K., and Schreier, M. 2012. "The Value of Crowdsourcing: Can Users Really Compete with Professionals in Generating New Product Ideas?," Journal of Product Innovation Management (29:2), pp. 245-256.
63. Rochet, J.-C., and Tirole, J. 2003. "Platform Competition in Two-Sided Markets," Journal of the European Economic Association (1:4), pp. 990-1029.
64. Rosen, S. 1981. "The Economics of Superstars," The American Economic Review (71:5), pp. 845-858.
65. Rysman, M. 2009. "The Economics of Two-Sided Markets," The Journal of Economic Perspectives), pp. 125-143.
66. Schwienbacher, A., and Larralde, B. 2012. "Crowdfunding of Small Entrepreneurial Ventures," in The Oxford Handbook of Entrepreneurial Finance. Oxford University Press.
67. Shane, S., and Cable, D. 2002. "Network Ties, Reputation, and the Financing of New Ventures," Management Science (48:3), pp. 364-381.
68. Snell, S.A. 1992. "Control Theory in Strategic Human Resource Management: The Mediating Effect of Administrative Information," Academy of Management Journal (35:2), pp. 292-327.
69. Spence, M. 1973. "Job Market Signaling," The Quarterly Journal of Economics (87:3), pp. 355-374.
70. Thies, F., Wessel, M., and Benlian, A. 2014. "Understanding the Dynamic Interplay of Social Buzz and Contribution Behavior within and between Online Platforms - Evidence from Crowdfunding," in: International Conference on Information Systems (ICIS 2014). Auckland, New Zealand.
71. Tiwana, A. 2014. Platform Ecosystems: Aligning Architecture, Governance, and Strategy. Waltham: Morgan Kaufmann.
72. Tiwana, A. 2015. "Evolutionary Competition in Platform Ecosystems," Information Systems Research (26:2), pp. 266-281.
73. Tiwana, A., and Keil, M. 2009. "Control in Internal and Outsourced Software Projects," Journal of Management Information Systems (26:3), pp. 9-44.
74. Tiwana, A., Konsynski, B., and Bush, A.A. 2010. "Research Commentary-Platform Evolution: Coevolution of Platform Architecture, Governance, and Environmental Dynamics," Information Systems Research (21:4), pp. 675-687.
75. Tucker, C., and Zhang, J. 2011. "How Does Popularity Information Affect Choices? A Field Experiment," Management Science (57:5), pp. 828-842.
76. Wareham, J., Fox, P.B., and Cano Giner, J.L. 2014. "Technology Ecosystem Governance," Organization Science (25:4), pp. 1195-1215.
77. Wikimedia Foundation, Inc. 2015. "Lists of Common Misspellings." Retrieved 2015-04-05 from http://en.wikipedia.org/wiki/Wikipedia:Lists-of-common-misspellings/For-machines
78. Wolter, C., and Veloso, F.M. 2008. "The Effects of Innovation on Vertical Structure: Perspectives on Transaction Costs and Competences," Academy of Management Review (33:3), pp. 586-605.
79. Yoffie, D.B., and Kwak, M. 2006. "With Friends Like These: The Art of Managing Complementors," Harvard business review (84:9), pp. 88-98, 157.
80. Zimmerman, M.A., and Zeitz, G.J. 2002. "Beyond Survival: Achieving New Venture Growth by Building Legitimacy," Academy of Management Review (27:3), Jul, pp. 414-431.