Exploring the Boundaries of Success: A Literature Review and Research Agenda on Resource, Complementary, and Ecological Boundaries in Digital Platform Business Model Innovation

Abstract

Digital platform business model innovation is a rapidly evolving field, yet the literature on resource, complementary, and ecological boundaries remains limited, leaving a significant gap in our understanding of the factors that shape the success of these platforms. This paper explores the mechanisms by which digital platforms enable business model innovation, a topic of significant theoretical and practical importance that has yet to be fully examined. Through a review of the existing literature and an examination of the connotations of digital platforms, the design of platform boundaries, and the deployment of boundary resources, the study finds that (1) the uncertainty of complementors and complementary products drives business model innovation in digital platforms; (2) the design of resource, complementary, and ecological system boundaries is crucial to digital platform business models and manages complementor and complementary product uncertainty while promoting value co-creation; and (3) boundary resources establish, manage, and sustain cross-border relationships that impact value creation and capture. Based on these findings, four research propositions are proposed to guide future research on digital platform business model innovation and provide insights for effectively innovating business models and influencing value creation and capture.

How has COVID-19 influenced changes in a platform business model of a startup? Alloy’s case study

“…Research on the field has suggested that established firms relied on the factors under their control, such as superior technology infrastructure, first-mover advantage, incentives, and subsidies, creation of social forums, and platform scope to attract participants, solve the early-stage conundrum of platforms, and trigger the network effect (Murthy & Madhok, 2021). Several studies indicate that platforms innovate or evolve in the dimensions that are related to the platform scope and are under the control of the firm (Baber et al, 2019;Berkers et al, 2020;Daradkeh, 2023;Foss & Saebi, 2017;Jovanovic et al, 2022).…”