A Model of the Platform-Ecosystem Organizational Form

Abstract

Technological advancements are driving the evolution of a form of organizing economic activity – the platform-ecosystem – particularly in a variety of ICT-enabled industries. This article builds on calls to more adequately describe and explain this form of organizing (Alberts, 2012; Baldwin, 2012; Tushman, Lakhani, & Lifshitz-Assaf, 2012). I propose a preliminary model that highlights the fundamental economic variables in the platform-ecosystem organizational form: knowledge substitution and powerful incentives. The model emphasizes knowledge-based considerations, suggesting the view that the main purpose of ICT-enabled platforms, such as smartphones, game consoles, and Internet services, is the development of complementary products, services, and technologies.