Competition or spillover? Effects of platform-owner entry on provider commitment
Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review
Author(s)
Related Research Unit(s)
Detail(s)
Original language | English |
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Pages (from-to) | 627-636 |
Journal / Publication | Journal of Business Research |
Volume | 144 |
Online published | 17 Feb 2022 |
Publication status | Published - May 2022 |
Link(s)
Abstract
Platform owners occasionally enter third-party providers’ markets with similar offerings. This study investigates the influence of such platform-owner entry on third parties’ commitment to a platform. We posit two competing mechanisms that explain the impact of platform-owner entry: the competition and spillover mechanisms. The competition mechanism suggests that a platform owner's entry dampens third-party providers’ commitment, primarily due to intensified competition, while the spillover mechanism predicts the opposite effect because of increased consumer awareness. Furthermore, we contend that under high (low) platform support, the mediating role of the spillover (competition) effect is strengthened. To test these propositions, we conducted a survey and collected data from platform providers in multiple industries. Overall, our findings support our hypotheses, which suggest that platform-owner entry is a double-edge sword. The entry may crowd out third-party providers, but it can also be a win-win for a platform and providers in the context of high platform support.
Research Area(s)
- Commitment, Competition effect, Platform support, Platform-owner entry, Spillover effect
Citation Format(s)
Competition or spillover? Effects of platform-owner entry on provider commitment. / Chi, Yunjia; Qing, Ping; Jin, Yong Jimmy et al.
In: Journal of Business Research, Vol. 144, 05.2022, p. 627-636.
In: Journal of Business Research, Vol. 144, 05.2022, p. 627-636.
Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review