12 research outputs found

    Unpacking platform business scaling in the digital age

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    Today’s increasingly pervasive digital technologies have radically transformed the competition landscape of the business world. To succeed in the digital age, digital businesses must establish and strengthen their ecosystem positions through rapid scaling. While extant literature in platform ecosystems identified the urgency of scaling for focal platforms, there is little recognition that non-focal actors (i.e., complementors) typically pursue their own growth ambitions. If successful, these ambitions may even shift the complementor’s position as a non-focal to a focal actor in the digital ecosystem. While such a scaling process opens new possibilities for the complementor, it also challenges its relations with focal platforms in the ecosystem on which it depends. This is what we refer to as the complementor’s dilemma: how can a non-focal actor pursue growth ambitions while maintaining favourable relationships with the focal platforms on which they grow? To address this research problem, a sequential mixed-method project combining qualitative research approaches with computational techniques was conducted. Developing on an in-depth embedded case study of the Chinese short video platform Douyin from its inception as a complementor in 2016 to its rapid establishment as a focal actor in 2018, we further test and generalise the findings for the entire social networking ecosystem in China. This allows for new empirical and theoretical perspectives on the navigation process of digital business scaling through identity projection. The findings suggest that non-focal businesses must continually locate and re-locate who they are in the moment and the trade-off of two, or multiple, future scenarios regarding their relationship with focal platforms, to cope with the complementor’s dilemma as they grow. Four identity projection strategies are further conceptualised as a powerful toolkit for balancing growth ambitions and dependency on other ecosystem actors during the scaling process. These findings contribute to the platform literature by offering a process model for non-focal businesses’ identity projection as they grow in digital ecosystems. The model offers important implications for our understanding of complementarity as a dynamic process involving purposeful identity re-projection, as non-focal businesses attempt to navigate tensions with focal platforms in digital ecosystems during growth. It also contributes to our understanding of digital business scaling beyond a high-growth consequence of firm size — a turbulent, uncertain, messy process to economies of complementarity in digital ecosystems

    Why Did Google Buy Fitbit? The Propensity of Platform Businesses to Select Unrelated Acquisition Targets

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    학위논문 (석사) -- 서울대학교 대학원 : 경영대학 경영학과, 2020. 8. 박남규.The M&A strategies of businesses operating on a platform model have received scant academic attention, despite the economic predominance of platform firms and the aggressiveness of their acquisition programs. In addition to undertaking more acquisitions than non-platform firms of similar economic stature, leading platform firms often pursue unrelated targets, against the majority of studies in M&A literature that pinpoints business relatedness as the key mechanism for synergy creation. This study examines how platform firms differ from non-platform firms in selecting acquisition targets and what influences their propensity to acquire targets with a low level of relatedness. It begins by investigating two unique and fundamental traits of platform businesses that distinguish them from non-platform businesses: their governance of ecosystems, rather than mere products and services, and their possession of an installed base, which grants them the leverage to venture into new industries with comparative ease. Based on these two characteristics, this paper argues that platform firms are more inclined to take over firms with a larger relatedness gap than non-platform firms. Furthermore, as their installed bases increase, platform businesses more frequently utilize unrelated acquisitions to expand into industries distant from their core business domain. An analysis of 1,027 acquisitions completed between 2009 and 2019 by firms listed in the NASDAQ-100 supports these arguments. In addition to performing the first empirical analysis of the M&A activity of platform businesses in a multi-industry context, this study contributes to the development of an integrative view that connects the fragmented understanding of platforms by utilizing a comprehensive definition of platforms and a classification system that categorizes platforms into three different types based on their primary function (innovation platforms, transaction platforms, and integrated platforms).본 연구는 연관성이 낮은 기업을 인수합병(unrelated M&A)을 하는 플랫폼(platform) 기업의 M&A 전략을 조사한다. 이전의 연구들은 미국을 비롯한 각국의 대기업이 사업연관성(business relatedness)이 높은 기업을 인수함으로써 시너지를 창출(synergy creation)해왔다고 분석했다. 하지만 구글, 아마존, 페이스북, 애플, 마이크로소프트와 같은 플랫폼 기업들은 오히려 사업 연관성이 낮은 기업을 M&A함으로써 성장하고 있다. 이번 연구는 그러한 이유를 분석하기 위해 비플랫폼 (non-platform) 사업과 구별되는 플랫폼 사업의 두 가지 근본적인 특징, 즉 생태계(ecosystem) 구축과 설치기반(installed base) 보유에 대해 면밀히 조사한다. 구체적으로, 나스닥 100지수(NASDAQ-100)에 상장된 기업이 2009부터 2019년까지 진행한 1,027건의 인수 합병을 실증적으로 분석함으로써, 플랫폼 기업이 전통적인 파이프라인(pipeline) 기업보다 사업 연관성이 떨어지는 피인수기업(target firm)을 선택하는 경향이 있고, 이러한 기질은 플랫폼 기업의 설치기반의 규모가 증가하면서 강화된다고 검증하였다. 이러한 결과는 플랫폼 사업의 M&A 전략을 최초로 다산업적 맥락에서 통계적으로 실험하였다는 방법론적 기여와, 플랫폼에 대한 3가지 유형분류와 통합적 이해를 제공한다는 이론적 기여점을 나타낸다.1. Introduction 1 2. Theory and Hypotheses 4 2.1 Defining and Classifying Platform Businesses 2.2 Platform Businesses and Unrelated M&A 2.3 Installed Base and Unrelated M&A 3. Data and Methods 19 3.1 Empirical Context 3.2 Measures 4. Discussion 31 References 34 국문초록 44Maste

    Analyzing platform evolution in the new digital era - case indoor positioning in China

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    In recent years, a World 2.0 new digital era has been reshaping the whole business world, leading to the emergence of many new digital platforms, which not only won in their own industry but also started offering services in other industries, including sometimes the emerging fields. In this regard, platforms may become useful for helping companies to expand in the new business area. Nevertheless, as the digital environment is highly dynamic and the platforms are always evolving, it is difficult to find an effective tool to estimate to which degree those platforms could be useful. In the meantime, technological advancements in different industries have been converging into four areas: social media & social networking, mobile/mobility, analytics, and cloud computing, resulting in the formation of a new term – SMAC. The aim of this thesis is to discuss whether SMAC can be used as a tool to assess the platform ecosystem and evaluate the platform evolution. To achieve the objective, a Chinese social networking platform – WeChat was studied with a focus on emerging indoor positioning business. The findings of case analysis can help the focal companies to identify more easily the potential partners in each vertical or horizontal market and to define their expansion strategy more adequately

    Analyzing the Chinese online-to-offline business dynamics: Case: Alibaba Group's Alipay

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    Research objectives As the rapid growing Chinese e-commerce market, the online-to-offline business dynamics gain more market power. However, this business dynamics approach lacks of theoretical framework support and detailed analysis. Therefore, this research study will start to analysis the overall condition of Chinese e-commerce industry. Along with the theoretical literatures, the framework is established to tackle business model, service process and the multi-sided platform effect. Lastly, an empirical case is chosen to detailed evaluate the platform dimensions, network effect, risks and opportunities. Data and methodology The research study is a qualitative research and descriptive analysis with some numeric indicating figures. By reviewing various literatures, the knowledge of creating an effective online business dynamics will be transferred to the empirical case. The case study helps to understand the Chinese online-to-offline business dynamics concretely. The data collected are mostly textual information from published reports, journals, and articles. The case company information are extracted from its official website and reliable Internet sources, such as Reuters, Bloomberg etc. Main findings and conclusion This research study produces four main findings. First, the Chinese e-commerce overview is presented to give readers a broad picture on current development status. Second, The Alibaba Group's business model is examined from four domains. Alibaba Group, as the platform provider, aims to provide high valued services for both buyers and sellers under secured environment. They focus on gaining market share with flexible yet prioritize critical resources in partner selection. Additionally, the service process analysis matrix illustrates Alipay is a fast routine process with value adding features. Alipay is not only a payment method, but also an integrated application for users to improve user experiences. Lastly, Alibaba and Alipay are both multi-sided platform, which involves users, merchants, platform provider and social media. The strong network effect is observed as a snowball effect. The risks and opportunities are addressed for Alibaba

    Re-Platformed Planet? The Rise and Spread of Chinese Technology Platform Companies

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    This thesis seeks to answer the question—what are the implications if Chinese platform technology companies expand around the world? To answer this question the research assesses whether platforms have powers of influence; if Chinese platforms have such powers; if they do, are they using such powers on behalf of the Chinese Communist Party (CCP) outside of China; and what might accelerate or inhibit their global expansion. The research expands on and connects current scholarship in a number of fields, among them: geoeconomics, business, technology & media, influence operations, and political economy. Evidence from a wide range of scholarship, Chinese policy documents, media coverage, and interviews provides answers to these questions. Two frameworks were developed to help evaluate platform influence powers and actors. Findings: Platforms are designed as “architectures of influence,” enabling a core set of actors to exert influence through them. Chinese platforms, have arguably enhanced influence capabilities because of their partnership in building and implementing China’s domestic surveillance and control infrastructure. Where they are expanding globally, there is evidence Chinese platforms are exerting influence on behalf of the CCP—and they are expanding rapidly, particularly in emerging markets. Nevertheless, they have not as yet superseded Western platforms’ presence. However, a number of factors could accelerate Chinese platform proliferation—innovation, loss of confidence in Western models, technology decoupling, internet standards and governance, and China’s technology stack. Other factors could inhibit their expansion—the current regulatory crackdown in China, impressions of China’s domestic and foreign policy actions, weaknesses in China’s soft power, and principal/agent effects. Based on the research and current trends, it is likely that Chinese platforms will continue to expand and act even more effectively on behalf of the CCP. The implications of this could be significant at the country level and for the global order. The thesis concludes with policy recommendations and suggested areas of further research

    Development of the Global Film Industry

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    "The global film industry has witnessed significant transformation in the past few years. Regions outside the US have begun to prosper while non-traditional production companies, such as Netflix have assumed a larger market share, and online movies adapted from literature have continued to gain in popularity. How have these trends shaped the global film industry? This book answers this question by analysing an increasingly globalised business through a global lens. Development of the Global Film Industry examines the recent history and current state of the business in all parts of the world. While many existing studies focus on the internal workings of the industry such as production, distribution, and screening, this study takes a ‘big picture’ view encompassing the transnational integration of the cultural and entertainment industry as a whole, and paying more attention to the coordinated development of the film industry in the light of influence from literature, television, animation, games and other sectors. This volume is a critical reference for students, scholars and the public to help them understand the major trends facing the global film industry in today’s world.

    La Cina nel mercato globale

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    Questo libro è nato nell’ambito dell’insegnamento di Economia dell’Innovazione nel corso di laurea triennale Lingue Mercati Culture dell’Asia - LMCA presso il Dipartimento di Lingue Letterature e Culture Moderne - LILEC dell’Università di Bologna, ed esamina diversi aspetti dell’impatto dell’innovazione sulla crescita economica della Cina nel mercato globale come un caso studio. Si compone di un capitolo introduttivo e di quattro parti: 1) Open the Door: la globalizzazione in entrata; 2) Indigenous Innovation: globalizzazione in uscita; 3) Climbing the Ladder; 4)Variabile estensione del mercato: Globale – Regionale. Vengono analizzati i seguenti temi/settori: Innovation Policy, Global Value Chains, Intellectual Property Rights e Standard Setting; R&D; Fotovoltaico, Veicoli Elettrici, Startup, eCommerce e Fintech, Intelligenza Artificiale, Guerra commerciale USA-Cina, Belt and Road Initiative

    Development of Global Film Industry: Industrial Competition and Cooperation in the Context of Globalization

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    The global film industry has witnessed significant transformations in the past few years. Regions outside the USA have begun to prosper while non-traditional production companies such as Netflix have assumed a larger market share and online movies adapted from literature have continued to gain in popularity. How have these trends shaped the global film industry? This book answers this question by analyzing an increasingly globalized business through a global lens.Development of the Global Film Industry examines the recent history and current state of the business in all parts of the world. While many existing studies focus on the internal workings of the industry, such as production, distribution and screening, this study takes a "big picture" view, encompassing the transnational integration of the cultural and entertainment industry as a whole, and pays more attention to the coordinated development of the film industry in the light of influence from literature, television, animation, games and other sectors.This volume is a critical reference for students, scholars and the public to help them understand the major trends facing the global film industry in today’s world
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