Managing External Innovation: The Case of Platform Extensions

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2. How do platform owners encourage and benefit from external innovation in the platform network while protecting platform integrity? 3. What is the impact of the platform extension management approaches on innovation levels in the platform network? Opening up the platform to exploit higher levels of innovation in the platform ecosystem entails a risk for the platform quality and its complements (Thomke & von Hippel, 2002; Gawer & Cusumano, 2008; Boudreau & Hagiu, 2009; Hagiu, 2009). Boudreau and Hagiu (2009) present evidence on the role of platform owners as regulators to protect the platform from negative effects such as low quality complements. To reduce the negative impact on the platform quality, platform owners have a number of regulatory instruments to regulate the platform ecosystem such as pricing, toolkits, and design rules (Baldwin & Clark, 2006; Hagiu, 2008; Bosch & Bosch-Sijtsema, 2009). This research is focused on the process of developing platform extensions, the strategies followed by platform owners to encourage external innovation, manage participation, and to control the quality of extensions developed by external parties as well as the tradeoff between innovation levels and the quality of extensions. 3
1.2 Deliverables The deliverables of the research are: • Framework that platform owners have adopted to manage the process of developing extensions and encourage the innovation in their network or ecosystem. • Propositions that describe relationships between the governance models adopted to manage the process of developing extensions, the extensions quality, and the flow of ideas in the platform network. • Propositions that describe relationships between regulatory instruments, extensions quality, and the flow of ideas in the platform network. 1.3 Relevance There are at least three groups who may be interested in the outcomes of this research. First, potential and existing platform owners who need to understand what strategies other platform owners have adopted to control the quality of extensions and why. Second, third party developers can have different roles in the process of building platform extensions, as they develop the extensions and build toolkits to harness platform development. Therefore, third party developers need to understand the tools and means provided by platform owners to build and control the quality of platform extensions. Third, this research will provide students and researchers with new research opportunities to develop models for managing external innovation in platforms. 4
Page 1: MANAGING EXTERNAL INNOVATION: THE C
Page 4 and 5: ABSTRACT In recent years, high-tech
Page 6 and 7: TABLE OF CONTENTS 1 INTRODUCTION...
Page 8 and 9: 4.9 StarOffice.....................
Page 10 and 11: Figure 22. IBM HTTP Server communit
Page 12 and 13: Table 20. Collaboration modes for M
Page 14 and 15: 1 INTRODUCTION Iyer (2006) describe
Page 18 and 19: 1.4 Contributions This research con
Page 20 and 21: 2.1 Open innovation strategies and
Page 22 and 23: architecture, production process an
Page 24 and 25: Innovation Mall Elite Circle Innova
Page 26 and 27: platform and extends its functional
Page 28 and 29: Therefore, the platform architectur
Page 30 and 31: In a modular architecture, the modu
Page 32 and 33: The distinction between external an
Page 34 and 35: platform, information, and service
Page 36 and 37: complexity of the platforms, and to
Page 38 and 39: • Contribution of external partie
Page 40 and 41: 3 RESEARCH METHOD This chapter desc
Page 42 and 43: 3.3 Method The research around regu
Page 44 and 45: 1. What are the models used by soft
Page 46 and 47: literature: i) regulatory tools, ii
Page 48 and 49: four projects was chosen using theo
Page 50 and 51: No. Section Description Data source
Page 52 and 53: Information was drawn from the plat
Page 54 and 55: 3.3.7 Identify strategies adopted b
Page 56 and 57: 4 WRITE UPS FOR PLATFORMS IN THE SA
Page 58 and 59: plug-in plugs and declares its depe
Page 60 and 61: Table 9. Collaboration modes for Ec
Page 62 and 63: selection of these new opportunitie
Page 64 and 65: products are based on Java technolo
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Table 10. Collaboration modes for I
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of that is adapting Firefox for use
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While not very prominent, there are
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as Extension Developer). There are
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Extension module Core module Spring
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Community structure Figure 15 shows
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The first stage is the extension pr
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The SpringSource.com offers a partn
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modules: set of core modules 4 that
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Table 14. Collaboration mode for th
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Regulatory instruments The Apache H
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modules themselves and the Apache R
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Table 15 represents the collaborati
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Platform architecture The OpenOffic
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Community Council Charter 7 . The c
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Table 16. Collaboration modes for O
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OpenOffice.org also has established
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External Uno Internal Uno OenOffice
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Sun Microsystems developers Extensi
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to each other over the spinal cord
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eceives commit access to the source
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None of the previous cases had that
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development process, the commercial
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Platform architecture MySQL server
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process is restricted to MySQL core
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sandbox, extension development proc
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Table 22. Summary of platform cases
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No 1 2 3 4 5 Platform Spring framew
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Community structure In Table 23, th
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External extension Platform core In
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5.1.3 Model C Table 27 represents t
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Table 28. Collaboration modes for m
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Table 29. Summary of the platforms
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Collaboration Model Model C Advanta
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Table 32.Summary of platform cases
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6 DISCUSSION 6.1 Strategies for man
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4. Regulatory instruments are used
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Platform architecture Governance st
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6.2 Regulatory instruments for mana
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Pricing P10 Toolkits Governance San
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Another key finding was the case of
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Third, conduct a longitudinal study
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Chen, W. J., Kirstein, H., Krook, D
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Hemrajani, A. (2006a). Chapter 6: O
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Herzog, P. (2008). Innovation and t
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Rossi, A., & Zamarian, M. (2006). D
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von Hippel, E. (2001). PERSPECTIVE:
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