Modelling Perceived Risks Associated to the Entry of Complementors’ in Platform Enterprises: A Case Study

Third-party innovators, i.e., complementors, in platform enterprises develop and commercialize add-on products which are one of the main attraction points for customers. To ensure a sustainable evolution of the enterprise, the platform owner needs to attract and retain high-quality third-party innovators. We posit that the transaction costs incurred upon joining the enterprise as well as the controls imposed by the platform owner throughout the development and commercialization process shape the innovator’s perceived risk and influence his decision on whether to join or not. Based on a literature review, the paper at hand proposes a conceptual model for complementors to assess their perceived risk and subsequently evaluates the model in a case study of a platform enterprise for IT-based modelling tools. While some of the propositions are validated, i.e., that informational controls decrease the perceived environmental uncertainty and implicitly the perceived risks, other propositions, such as the fact that asset specificity is a deterrent to entering the platform enterprise could not be validated. Further case studies are necessary to provide a conclusive proof of the proposed model.

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• http://www.mdpi.com/2071-1050/10/9/3272
• doi:10.3390/su10093272

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@article{miron_modelling_2018,
title = {Modelling Perceived Risks Associated to the Entry of Complementors’ in Platform Enterprises: A Case Study},
author = {Elena-Teodora Miron and Anca Purcarea and Olivia Negoita},
url = {http://www.mdpi.com/2071-1050/10/9/3272},
doi = {10.3390/su10093272},
issn = {2071-1050},
year  = {2018},
date = {2018-09-01},
urldate = {2020-11-25},
journal = {Sustainability},
volume = {10},
number = {9},
pages = {3272},
abstract = {Third-party innovators, i.e., complementors, in platform enterprises develop and commercialize add-on products which are one of the main attraction points for customers. To ensure a sustainable evolution of the enterprise, the platform owner needs to attract and retain high-quality third-party innovators. We posit that the transaction costs incurred upon joining the enterprise as well as the controls imposed by the platform owner throughout the development and commercialization process shape the innovator’s perceived risk and influence his decision on whether to join or not. Based on a literature review, the paper at hand proposes a conceptual model for complementors to assess their perceived risk and subsequently evaluates the model in a case study of a platform enterprise for IT-based modelling tools. While some of the propositions are validated, i.e., that informational controls decrease the perceived environmental uncertainty and implicitly the perceived risks, other propositions, such as the fact that asset specificity is a deterrent to entering the platform enterprise could not be validated. Further case studies are necessary to provide a conclusive proof of the proposed model.},
keywords = {},
pubstate = {published},
tppubtype = {article}
}