Now showing 1 - 5 of 5
  • Publication
    Digital platform-based ecosystems: The evolution of collaboration and competition between incumbent producers and entrant platforms
    The rise of the Internet has seen traditional incumbent producers challenged by competition from digital entrant platforms. It is unclear, however, how those two types of actors—which are in competition but also mutually dependent—can co-exist in the new platform-based ecosystem. This paper sheds light on that pivotal phenomenon by connecting the traditional literature on incumbent adaptation with the growing conversation on digital platform-based ecosystems. Through a qualitative longitudinal (2005–2019) study of the global digital advertising ecosystem, we examine how incumbent producers pivot between competitive and cooperative strategies in response to digital entrant platforms. Our analysis reveals a process characterized by three sequential phases: (1) selective cooperation, (2) allied competition, and (3) selective coopetition. Those phases show how switching between different multi-level strategies spanning market segments, products, and technological components represents a viable solution for incumbent producers adapting in the face of entrant platforms.
      276Scopus© Citations 79
  • Publication
    Discontinuities, competition, and cooperation: Coopetitive dynamics between incumbents and entrants
    Research Summary: We advance an integrative model in which distinct types of technological discontinuities (core‐knowledge vs. complementary‐asset) are combined with different appropriability regimes (strong vs. weak) to predict competitive and cooperative dynamics between incumbents and entrants. We posit that incumbents ally with entrants following a core‐knowledge discontinuity when the appropriability regime is strong. When the appropriability regime is weak, incumbents are more likely to acquire entrants. We submit that the additional consideration of complementary‐asset discontinuities reveals a more integrated theoretical model of competition and cooperation between incumbents and entrants. In particular, incumbents tend to cooperate among themselves following complementary‐asset discontinuities, although we highlight theoretical nuances due to different appropriability regimes. We provide falsifiable propositions, and introduce contingencies such as firm‐level heterogeneity and time dynamics. --- Managerial Summary: Interfirm cooperation is one possible avenue for existing firms to address the challenge of responding to discontinuous technological changes. What is not clear, however, is who should the incumbent ally with: other incumbents or new entrants? We provide an integrative framework to help managers to decide when to cooperate with competitors and when to cooperate with new entrants. When the core knowledge of incumbent firms is made obsolete by technological advances and intellectual property is fairly well protected, managers of existing firms should search out collaboration with new entrants. If intellectual property protection is weak, managers of incumbents firms are better off acquiring new entrants. When the downstream complementary resources such manufacturing, distribution, and sales are replaced by radically new technologies, then incumbents best option is cooperate with other incumbents in order to compete against new entrants.
      3363Scopus© Citations 78
  • Publication
    Business Model Innovation after Disruptions: A Process Study of an Incumbent Media Organization
    (Academy of Management, 2017-10-30) ; ;
    Business model innovation is one possible avenue that incumbents can pursue in order to adapt to disruptive forces. Although we know much about the necessity and importance of incumbent adaptation to disruptions, we know much less about the process and direction of such transformations. We investigate herein the process through which incumbents respond to disruptions by opening up their closed business models. We conducted an in-depth and longitudinal study over a 20-year time period (1995-2016) of the process by which a major Italian news media publishers responded to the disruption by the Internet. By opening their business model, we find that incumbents can increase the access to and exploitation of external knowledge sources in order to seize new opportunities, lower costs, and fend off low-end disruptors. We further highlight the tensions that incumbents experience when opening up a relatively closed business model.
      595Scopus© Citations 3
  • Publication
    Responding to Complementary-Asset Discontinuities: A Multilevel Adaptation Framework of Resources, Demand, and Ecosystems
    (The Institute for Operations Research and the Management Sciences, 2022) ;
    We examine how incumbent organizations respond to complementary-asset discontinuities — technological changes that introduce new manufacturing, distribution, and sales assets but leave the incumbents’ core knowledge preserved. To examine this increasingly common but relatively overlooked phenomenon, we conducted an inductive study of how six newspapers adapted to Internet distribution from 1995 to 2019. Our contribution is a framework that highlights three levels of adaptation (resources, demand, and ecosystem) with related mechanisms and necessary outcomes. At the resource level, incumbents adopt the new complementary assets according to the perception of synergies with their existing core knowledge. At the demand level, the extent to which incumbents update their beliefs about value creation depends on how much they experiment with customers. At the ecosystem level, higher experimentation in the ecosystem helps incumbents to update their beliefs about value capture. The research offers important implications for the technological change, strategic management, and business model innovation literature.
      741Scopus© Citations 1
  • Publication
    Unpacking the Disruption Process: New Technology, Business Models, and Incumbent Adaptation
    Despite the growing importance of digital transformation and the notion of disruptive innovation, strategy literature still lacks a more complete picture of how incumbent organizations adapt their business models after disruptions. This research sheds light on this important process by analyzing a major Italian news media publisher reacting to the advent of the internet and the emergence of new business models by entrants into the industry (1995–2017). We specifically examine: (1) the drivers and impeding factors of business model adaptation; (2) how incumbents change strategies to cope with different components of the disruption process; and (3) how a closed business model can be renewed to develop an open, platform-based business model to seize external opportunities, incur lower costs, and fend off disruptors. This study contributes to the burgeoning literature on disruption, business models, and platforms.
      4884Scopus© Citations 161