Value creation and capture mechanisms in platform ecosystems: a case study of a platform ecosystem in the smart building environment

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Journal Title

Journal ISSN

Volume Title

School of Business | Master's thesis

Authors

Date

2022

Department

Tieto- ja palvelujohtamisen laitos

Major/Subject

Mcode

Degree programme

Information and Service Management (ISM)

Language

en

Pages

82 + 1

Series

Abstract

Despite the increasing interest among practitioners and researchers in platform ecosystems, relatively little attention has been paid to ecosystem-based value creation and capture mechanisms on B2B platform ecosystems. This thesis contributes to this research gap by exploring how the B2B platform ecosystem utilizes value creation and capture practices towards perceived benefits. The empirical part of this thesis was conducted as a qualitative case study on an ecosystem in the smart building industry. The empirical data was collected through 7 semi-structured interviews with the representatives of partner companies and the case company that orchestrates the case ecosystem on top of its API platform. The data analysis was conducted using the Gioia methodology to interpret and present the empirical qualitative data based on the theoretical framework. The findings of this study indicate that the primary building block for ecosystem-based value creation is to find complementary resources and different market positions between the orchestrator and partners, which creates a basis for B2B platform ecosystem emergence. The ecosystem was viewed as a strategic asset to find synergies related to functional value, operational efficiency, and innovation capacity, with mechanisms that address cooperative relationships at different levels in the ecosystem and the focal company. First, ecosystem orchestrators have a vital role in developing appropriate integrability and ways of working for engaging partners to maintain long-term commitment. Second, participants should develop resource integration in customer-facing activities that, for example, improves product development processes and the identification of new opportunities in the ecosystem. Third, the findings indicate that APIs and standards are crucial for optimizing ecosystem boundaries and measuring value creation as the ecosystem develops. To conclude, the study provides an understanding of business benefits from platform ecosystems and the mechanisms needed to develop at the company and the ecosystem level to reach those benefits. Furthermore, this study provides insights to incumbents, SMEs, and entrepreneurs looking into opportunities either scaling their own or joining existing platform ecosystems in adjacent industries.

Description

Thesis advisor

Rossi, Matti

Keywords

platform economy, business ecosystem, platform ecosystem, platform strategy, innovation, value creation

Other note

Citation

Permanent link to this item

https://urn.fi/URN:NBN:fi:aalto-202301221379

Collections

[gradu] Kauppakorkeakoulu / BIZ