Success factors of platform leadership in web 2.0 service business

Abstract

The purpose of this study is to investigate the critical success factors of platform leadership in the Web 2. 0 based service business environment. Because of the lack of theoretical foundation for this topic, we adopted relevant theory and case study analyses. Representative Web 2. 0 firms which have developed platform leadership were chosen and analyzed on the basis of previous research on platform strategy through spider web analysis. This study shows that Web 2. 0 firms such as Google, Flickr, and Salesforce. com differ in their competitive capabilities for platform leadership. The result of this research suggests that platform leadership in the Web 2. 0 era depends on five interdependent dimensions: innovation ability, connectivity, complementarities, efficiency, and network effects. © Springer-Verlag 2010.