Ecosystem-specific advantages in international digital commerce

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Journal of International Business Studies

December 2019, Volume 50, Issue 9, pp 1448–1463

Jiatao Li  Liang Chen  Jingtao Yi*  Jiye Mao  Jianwen Liao

Abstract

We consider the applicability to digital platforms of extant international business scholarship. The organization of digital platforms has been seen to such an extent as predicated upon the bundling of external resources for collective value creation that their expansion may follow the logic of externalization. We further that literature contrasting the governance of network multinationals with that of platform-centric ecosystems. Building on and extending the theory of the ecosystem, we propose the concept of ecosystem-specific advantages. We identify costs and difficulties in the transfer of such advantages to new markets, emphasizing in particular the idea of bottlenecks. We then propose a framework that can be applied to future research on digital platforms, focusing on the users, suppliers of complementary products, and platform firms. We also call for research on the dynamic process of creating, transferring, and upgrading ecosystem-specific advantages.

Keywordsdigital platforms platform ecosystems ecosystem-specific advantages Internet commerce