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Article
Publication date: 19 April 2018

Kanghwa Choi

Hyperconnectivity and supercooperation among partners within the mobile value chain are crucial factors for sustainable growth of the mobile ecosystem

Abstract

Purpose

Hyperconnectivity and supercooperation among partners within the mobile value chain are crucial factors for sustainable growth of the mobile ecosystem. This study aims to identify the complex structure of hyperconnectivity and supercooperation underlying revenue sharing practices and the actions and reactions of Chinese mobile video triads.

Design/methodology/approach

This study uses the causal loop diagram and system dynamics simulation to demonstrate the feedback causal structure wherein the revenue sharing (RS) rule adjustments trigger interactions among participants (e.g., MNOs, SPs and CPs) in mobile video service triads, leading to fluctuations in the number of mobile video users and total revenue in the mobile video value chain.

Findings

Change of RS rules among value chain participants is an incentive for achieving the sustainability of the mobile ecosystem, as examined using a system dynamics (SD) simulation. However, from the perspective of a tri-partite mobile value chain, the “accidental adversary” system archetype caused by adjustment of RS rules has an unintended negative impact on counterparts in the mobile ecosystem value chain.

Originality/value

This study analyzes a complex feedback causal structure based on structural interdependencies among growth, limiting and relaxing loops in the Chinese mobile video ecosystem. The result of SD simulation suggests strategic alternatives such as the “growth and underinvestment” systems archetype to overcome “limits to growth”. Moreover, this study explores the accidental adversary archetype in complex and complicated mobile service triads as an impediment to achieving sustainability of the mobile ecosystem.

Details

Supply Chain Management: An International Journal, vol. 23 no. 2
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 15 March 2013

Ke Rong, Yongjiang Shi and Jiang Yu

The purpose of this paper is to explore the ways in which firms nurture the business ecosystem for the development of emerging industries.

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Abstract

Purpose

The purpose of this paper is to explore the ways in which firms nurture the business ecosystem for the development of emerging industries.

Design/methodology/approach

The research uses a qualitative research methodology with multiple case studies, namely two groups of companies in the PC and mobile business ecosystems.

Findings

This paper argues that industry renewal or emergence relies on the convergence and evolutionary process of the relevant business ecosystems. It analyzes the challenges faced by emerging industries, especially uncertainty issues concerning technology, application, and market. To deal with these uncertainty issues, firms within business ecosystems have developed two kinds of strategies: the core‐firm platform strategy and the niche‐firm supplementary strategy with an integrated supply chain. By using such strategies, firms together follow a three‐step process, including adjustment, adoption, and convergence, to help nurture the emerging industry.

Research limitations/implications

This study only conducts interviews with industrial practitioners in the mobile computing business ecosystem, without covering other stakeholders.

Practical implications

First, the study describes the platform and supplementary strategies to deal with industry uncertainties; second, the analysis also identifies a three‐step collective behavior to achieve industry convergence.

Originality/value

The paper extends the study of business ecosystem theory into supply chain management by embedding different roles and strategies as well as collective behavior into a dynamic business environment.

Details

Industrial Management & Data Systems, vol. 113 no. 3
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 8 August 2016

Jie Guo and Harry Bouwman

To understand why the penetration of handset-based mobile payment in most countries is still low has been an important research topic for the last 15 years, and it has been…

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Abstract

Purpose

To understand why the penetration of handset-based mobile payment in most countries is still low has been an important research topic for the last 15 years, and it has been analyzed from different perspectives. However, the analysis of a single aspect cannot provide a sophisticated answer to the complicated underlying question. The purpose of this paper is to understand how a relatively successful m-payment ecosystem is created and sustained through the coopetition of various actors.

Design/methodology/approach

To that end, the authors analyze the case of Alipay wallet, the m-payment service provider with the largest market share in China, and focus on understanding the motivations and subsequent actions of the organizations cooperating in the Alipay wallet core ecosystem.

Findings

The results show that actors with heterogeneous and complementary resources can forge sustainable collaboration. Within an ecosystem, although always constrained by resources and capabilities, the actions that the core actors take and the resulting power imbalances are dynamically changing, reflecting actors’ aim of reducing uncertainty.

Research limitations/implications

The main limitation of this case is that it was conducted in a Chinese context, which has specific features that may not apply to other cases. In addition, this study is based on a single case study in a single country, without comparing the results to any other cases or countries. Therefore, some modifications may have to be made when applying the framework and generalizing the results.

Practical implications

With regards to the practical perspective, the Alipay case may serve as an example that other providers follow, taking similar actions to increase the dependency of others and reduce their own dependency on others. It is helpful to take a keystone strategy to create value within the ecosystem and share this value with other participants. Moreover, Alipay acts as the platform provider, in addition to managing value creation within the ecosystem and sharing that value with the other participants. Alipay focuses on the business and strategic needs of the core actors, without threatening their main business, for example, Alipay focuses on micro-payments, which does not pose a direct competition to banks, who mainly rely on macro-payments to generate profit. Micro-payments are often related to high transaction costs for banks. In addition, although it is difficult to define the boundaries of actors in the ecosystem, the core business of every actor is the key competitive or even survival condition. This notion should be taken into consideration by actors whose actions affect the business of other ecosystem partners. For instance, Alipay will not aim to become a bank, as they know that if they do so, they cannot connect any other bank to their platform. In other words, the scope and boundary of the actors are clearly identified so that the core business will not be threatened. Sords, we can learn from Alipay that it pays off to focus on one area, and not to let your competitors challenge you.

Originality/value

The authors proposed the StReS framework for analyzing a business ecosystem by combining resource-based review, resource dependency theories and network analysis for investigating the motivations of the organizations cooperating in the core ecosystem and the actions they have taken to reduce dependency and uncertainty.

Article
Publication date: 16 November 2015

Rozeia Mustafa

The paper provides a holistic overview of already available academic literature of mobile banking, business model innovation and ecosystem and activity system perspective of…

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Abstract

Purpose

The paper provides a holistic overview of already available academic literature of mobile banking, business model innovation and ecosystem and activity system perspective of business model concepts. The purpose of this conceptual paper is to initiate a debate for future research in the agenda highlighted in this paper.

Design/methodology/approach

In this paper, mobile banking business ecosystem of Easypaisa is used as an illustrative case to understand mobile banking business model innovation in the context of business ecosystem and activity system perspective.

Findings

Based on Porter’s view of mobile financial service (MFS) industry, it is suggested that patterns of business model innovation can be explained through business ecosystem and activity system. The notion of business model innovation can also be explained through integrated value chain of mobile network operator and its partners in the supply chain of MFS.

Research limitations/implications

This paper provides preliminary overview of the exiting academic literature on business model innovations, business ecosystem and activity system in the in the context of value network. Since this is only a literature review paper, therefore, no primary data have been collected for this case study through interviewing from the relevant people.

Originality/value

So far, no research has been conducted in Pakistan to address business model innovation in mobile banking sector in the context of business ecosystem and activity system perspective.

Details

Journal of Strategy and Management, vol. 8 no. 4
Type: Research Article
ISSN: 1755-425X

Keywords

Book part
Publication date: 26 August 2014

Joel West and David Wood

Two key factors in the success of general-purpose computing platforms are the creation of a technical standards architecture and managing an ecosystem of third-party suppliers of…

Abstract

Two key factors in the success of general-purpose computing platforms are the creation of a technical standards architecture and managing an ecosystem of third-party suppliers of complementary products. Here, we examine Symbian Ltd., a startup firm that developed a strong technical architecture and broad range of third-party complements with its Symbian OS for smartphones. Symbian was shipped in nearly 450 million mobile phones from 2000 to 2010, making it the most popular smartphone platform during that period. However, its technical and market control of the platform were limited by its customers, particularly Nokia. From 2007 onward, Symbian lost market share and developer loyalty to the new iPhone and Android platforms, leading to the extinction of the company and eventually its platform. Together, this suggests lessons for the evolution of a complex ecosystem, and the impact of asymmetric dependencies and divided leadership upon ecosystem success.

Details

Collaboration and Competition in Business Ecosystems
Type: Book
ISBN: 978-1-78190-826-6

Keywords

Article
Publication date: 17 August 2015

Junying Zhong and Marko Nieminen

The purpose of this paper is to introduce the RISE model on service innovation in coopetitive business environment. The case study illustrates why and how Chinese providers…

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Abstract

Purpose

The purpose of this paper is to introduce the RISE model on service innovation in coopetitive business environment. The case study illustrates why and how Chinese providers utilize ecosystems for innovative mobile payment service development to achieve coopetitive advantage based on firms’ superior resources.

Design/methodology/approach

The companies in the case study include Alipay (third-party actor), Bestpay (mobile operator), and UnionPay (banking). Empirical data comes from semi-structured interviews complemented with observations and documents. The analysis of the data follows grounded theory guidelines: creation of a theoretical framework, data collection, and interpretation of the data using the coding strategies of open coding, axial coding, and selected coding.

Findings

Inter-organizational co-innovation appears as a successful strategy for mobile payment service innovation. In addition to strategic choice on this, understanding of superior and inferior resources and capabilities influence firms’ coopetitive advantages in a coopetitive service development environment. Ecosystems are formed along with the innovating activities, and difficulties are caused by coopetition challenges. The RISE model enables the analysis and selection of strategic patterns for service innovation in a coopetitive environment.

Originality/value

The paper contributes to resource-advantage theory and platform ecosystem theory. The theories are used to analyze and model the effects of strategy execution for achieving win-win relationships in inter-organizational co-innovation. This paper helps executives to match their service innovation strategies to platform ecosystem architectures, as well as to understand how resource-advantage challenges affect the execution strategy of setting up their platform ecosystems.

Details

Journal of Strategy and Management, vol. 8 no. 3
Type: Research Article
ISSN: 1755-425X

Keywords

Article
Publication date: 3 October 2016

Yanhong Yao and Huiping Zhou

The purpose of this paper is to build a symbiotic evolution model to analyze the symbiotic modes and dynamic equilibrium of mobile internet platform innovation ecosystem (MIPIE…

Abstract

Purpose

The purpose of this paper is to build a symbiotic evolution model to analyze the symbiotic modes and dynamic equilibrium of mobile internet platform innovation ecosystem (MIPIE) in order to explore its evolutionary path.

Design/methodology/approach

From a symbiosis theory perspective, the authors studied the dynamic evolution stages and symbiotic mode of MIPIE. By adopting logistic model, the symbiotic evolution model of MIPIE is established. After calculating the steady conditions and equilibrium point of this model, numerical simulation was done with MATLAB software to illustrate the impact of symbiotic parameters on evolution path in this ecosystem.

Findings

The symbiotic evolution mode of MIPIE experienced parasitism, commensalism to asymmetric mutualism, and symmetry mutualism or independence. In given conditions, the dynamic evolution of MIPIE eventually tends to a steady equilibrium point. The evolutionary consequence of innovative subjects is not only determined by the natural growth rate, but symbiotic modes can also affect the evolutionary path. Different symbiotic modes result in different evolutionary paths.

Practical implications

Improved understanding of symbiosis in MIPIE could help policy makers to promote value co-creation and dynamic interests balance while facilitating the cooperation of others for successful platform ecosystem management.

Originality/value

The logistic model introduced here bridge theory and practice while establishing a stronger link between symbiosis theory and platform ecosystem management.

Details

Kybernetes, vol. 45 no. 9
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 3 June 2019

Sandip Mukhopadhyay and Harry Bouwman

Because of the attention increasingly being focused on digital transformation, interest in business models of platform-enabled ecosystems is rising rapidly. Although there are…

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Abstract

Purpose

Because of the attention increasingly being focused on digital transformation, interest in business models of platform-enabled ecosystems is rising rapidly. Although there are different theoretical views on the role of ecosystems, a synthesis of research, with a focus on governance and orchestration in dynamic, multi-industry eco-systems, is lacking.

Design/methodology/approach

A systematic literature review was conducted by following a rigorous search protocol in the scholarly databases covering both journal articles and conference papers These papers were subsequently filtered, and finally, 48 relevant papers were selected for analysis.

Findings

The review identifies five key aspects of platform governance design that need close consideration: the meta-organisation or ecosystem design, coordination mechanisms, mechanisms for value co-creation, value appropriation mechanisms and architectural principles. To achieve balance among a set of competing demands, platform leaders need to devote adequate attention to these aspects.

Practical implications

Based on a literature review, the authors provide an overview of underlying theoretical views, research methods and key trends to develop a sound theoretical grounding for research on platform governance design. The paper also suggests research gaps in the existing literature and sets directions for researchers to strengthen the understanding of effective platform governance design. The paper also provides valuable information to managers in developing or leading a successful platform ecosystem.

Originality/value

The paper uses existing literature published in this topic and original in nature.

Details

Digital Policy, Regulation and Governance, vol. 21 no. 4
Type: Research Article
ISSN: 2398-5038

Keywords

Article
Publication date: 12 February 2021

Pooja Sarin, Arpan Kumar Kar and Vigneswara P. Ilavarasan

The Web 3.0 has been hugely enabled by smartphones and new generation mobile applications. With the growing adoption of smartphones, the use of mobile applications has grown…

Abstract

Purpose

The Web 3.0 has been hugely enabled by smartphones and new generation mobile applications. With the growing adoption of smartphones, the use of mobile applications has grown exponentially and so has the development of mobile applications. This study is an attempt to understand the issues and challenges faced in the mobile applications domain using discussions made on Twitter based on mining of user generated content.

Design/methodology/approach

The study uses 89,908 unique tweets to understand the nature of the discussions. These tweets are analyzed using descriptive, content and network analysis. Further using transaction cost economics, the findings are reviewed to develop practice insights about the ecosystem.

Findings

Findings indicate that the discussions are mostly skewed toward a positive polarity and positive user experiences. The tweeters are predominantly application developers who are interacting more with marketers and less with individual users.

Research limitations/implications

Most of these applications are for individual use (B2C) and not for enterprise usage. There are very few individual users who contribute to these discussions. The predominant users are application reviewers or bloggers of review websites who use the recently developed applications and discuss their thoughts on the same.

Practical implications

The results may be useful in varied domains which are planning to expand their reach to a larger audience using mobile applications and for marketers who primarily focus on promotional content.

Social implications

The domain of mobile applications on social media is still restricted to promotions and digital marketing and may solely be used for the purpose of link building by application developers. As such, the discussions could provide inputs towards mobile phone manufacturers and ecosystem providers on what are the real issues these communities are facing while developing these applications.

Originality/value

The study uses mixed research methodology for mining experiences in the domain of mobile application developers using social media analytics and transaction cost economics. The discussion on the findings provides inputs for policy-making and possible intervention areas.

Details

Journal of Advances in Management Research, vol. 18 no. 4
Type: Research Article
ISSN: 0972-7981

Keywords

Article
Publication date: 9 May 2008

Venkata Ratnadeep Suri and Harmeet Sawhney

The purpose of this paper is to chart the evolving internet‐mobile internet relationship in Japan.

Abstract

Purpose

The purpose of this paper is to chart the evolving internet‐mobile internet relationship in Japan.

Design/methodology/approach

The approach takes the form of a case study.

Findings

The original i‐Mode‐based model for mobile internet in Japan was largely an ordered system except for relatively marginal unofficial web sites, which unlike official web sites were not listed on the browser, where an element of chaos reigned. The introduction of Google search engine changed the ecosystem by giving the unofficial web sites new visibility.

Practical implications

The interface between the internet and its wireless extensions is a potential source of powerful influences both ways and needs to be watched.

Originality/value

The paper looks at the little studied interface between the chaotic internet and its mobile extensions, largely ordered systems, to see whether the chaos of the internet will spill over to its mobile extensions or whether the order of the latter will march on to the former.

Details

info, vol. 10 no. 3
Type: Research Article
ISSN: 1463-6697

Keywords

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