Skip to main content

How Do Practitioners Understand External Platforms and Services? A Grounded Theory Investigation

  • Conference paper
  • First Online:
Advances in Information Systems Development

Abstract

In this article, we investigate how practitioners understand external platforms, whose core offering is shared and utilized by a number of heterogeneous and interconnected organizations in an ecosystem. We especially look into situations where organizations wish to extend their own capability instead of building services that extend the functionality of the platform. Such dependencies to external platforms can be envisioned as the contemporary evolution from traditional outsourcing service models. We interviewed twenty-four practitioners from eight IT organizations and discovered a considerable ambiguity in understanding of what are the external platforms utilized by the organizations. We further elaborate that the diversified meanings that various stakeholders give to the concept of external platforms, can hinder efficient communication and may have implications on important strategic decision making.

A prior version of this paper has been published in the ISD2018 Proceedings (http://aisel.aisnet.org/isd2014/proceedings2018).

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 39.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  1. Boudreau, K.J., Hagiu, A.: Platform rules: multi-sided platforms as regulators. Platf. Mark. Innov., 163–191 (2009)

    Google Scholar 

  2. Gawer, A., Cusumano, M.A.: Industry platforms and ecosystem innovation. J. Prod. Innov. Manag. 31, 417–433 (2014)

    Article  Google Scholar 

  3. Eisenmann, T.R., Parker, G., Van Alstyne, M.: Opening platforms: how, when and why? Platf. Mark. Innov., 131–162 (2009)

    Google Scholar 

  4. Huber, T.L., Kude, T., Dibbern, J.: Governance practices in platform ecosystems: navigating tensions between co-created value and governance costs. Inf. Syst. Res. (2017)

    Google Scholar 

  5. Tiwana, A.: Platform Ecosystems: Aligning Architecture, Governance, and Strategy. Morgan Kaufmann Publishers Inc., San Francisco, CA, USA (2014)

    Book  Google Scholar 

  6. Ghazawneh, A., Henfridsson, O.: Balancing platform control and external contribution in third-party development: the boundary resources model. Inf. Syst. J. 23, 173–192 (2013)

    Article  Google Scholar 

  7. Huang, P., Ceccagnoli, M., Forman, C., Wu, D.: When Do ISVs Join a Platform Ecosystem? Evidence from the Enterprise Software Industry. ICIS 2009 Proceedings, pp. 1–18 (2009)

    Google Scholar 

  8. Lindgren, R., Eriksson, O., Lyytinen, K.: Managing identity tensions during mobile ecosystem evolution. J. Inf. Technol. 30, 229–244 (2015)

    Article  Google Scholar 

  9. Selander, L., Henfridsson, O., Svahn, F.: Capability search and redeem across digital ecosystems. J. Inf. Technol. 28, 183–197 (2013)

    Article  Google Scholar 

  10. Evans, P.C., Gawer, A.: The rise of the platform enterprise: a global survey (2016)

    Google Scholar 

  11. Rolland, K.H., Mathiassen, L., Rai, A.: Managing digital platforms in user organizations: the interactions between digital options and digital debt. Inf. Syst. Res. (2018)

    Google Scholar 

  12. Yoo, Y., Henfridsson, O., Lyytinen, K.: The new organizing logic of digital innovation: an agenda for information systems research. Inf. Syst. Res. 21, 724–735 (2010)

    Article  Google Scholar 

  13. Parker, G., Van Alstyne, M.: Innovation, openness, and platform control. Manag. Sci. (2017)

    Google Scholar 

  14. Henfridsson, O., Bygstad, B.: The generative mechanisms of digital infrastructure evolution. MIS Q. 37, 907–931 (2013)

    Article  Google Scholar 

  15. Tilson, D., Lyytinen, K., Sørensen, C.: Digital infrastructures: the missing IS research agenda. Inf. Syst. Res. 21, 748–759 (2010)

    Article  Google Scholar 

  16. Jansen, S., Cusumano, M.A.: Defining software ecosystems: a survey of software platforms and business network governance. Softw. Ecosyst. Anal. Manag. Bus. Netw. Softw. Ind. 13 (2013)

    Google Scholar 

  17. Gawer, A., Cusumano, M.A.: How companies become platform leaders. MIT Sloan Manag. Rev. 49, 28–35 (2008)

    Google Scholar 

  18. Karhu, K., Tang, T., Hämäläinen, M.: Analyzing competitive and collaborative differences among mobile ecosystems using abstracted strategy networks. Telemat. Inform. 31, 319–333 (2014)

    Article  Google Scholar 

  19. Venkatraman, V.N., El Sawy, O.A., Pavlou, P., Bharadwaj, A.: Theorizing digital business innovation: platforms and capabilities in ecosystems. Fox Sch. Bus. Res. Pap. 15–80, 1–36 (2014)

    Google Scholar 

  20. Eaton, B., Elaluf-Calderwood, S., Sørensen, C., Yoo, Y.: Distributed tuning of boundary resources: the case of apple’s iOS service system. MIS Q. 39, 217–243 (2015)

    Article  Google Scholar 

  21. Ghanam, Y., Maurer, F., Abrahamsson, P.: Making the leap to a software platform strategy: issues and challenges. Inf. Softw. Technol. 54, 968–984 (2012)

    Article  Google Scholar 

  22. Boudreau, K.: Does Opening a Platform Stimulate Innovation? The Effect on Systemic and Modular Innovations. https://ssrn.com/abstract=913402 (2007)

  23. Pfeffer, J., Salancik, G.R.: The external control of organizations: a resource dependence perspective. Stanford University Press (2003)

    Google Scholar 

  24. Altman, E.J.: Dependency Challenges, Response Strategies, and Complementor Maturity: Joining a Multi-Sided Platform Ecosystem. Working paper (2016)

    Google Scholar 

  25. Baldwin, C.Y., Clark, K.B.: Design rules: the power of modularity. Acad. Manag. Rev. 26, 471 (2000)

    Google Scholar 

  26. Barney, J.: Firm resources and sustained competitive advantage. J. Manag. 17, 99–120 (1991)

    Google Scholar 

  27. Cusumano, M.: Cloud computing and SaaS as new computing platforms. Commun. ACM 53, 27 (2010)

    Article  Google Scholar 

  28. Glaser, B., Strauss, A.: The Discovery of Grounded Theory. Weidenfield Nicolson, London (1967)

    Google Scholar 

  29. Runeson, P., Höst, M.: Guidelines for conducting and reporting case study research in software engineering. Empir. Softw. Eng. 14, 131–164 (2008)

    Article  Google Scholar 

  30. Strauss, A.L., Corbin, J.: Basics of Qualitative Research: Grounded Theory Procedures and Applications. Sage Publications, Newbury Park, CA (1990)

    Google Scholar 

  31. Hoberg, P., Wollersheim, J., Krcmar, H.: The Business Perspective on Cloud Computing-A Literature Review of Research on Cloud Computing (2012)

    Google Scholar 

  32. Bazarhanova, A., Yli-Huumo, J., Smolander, K.: Love and hate relationships in a platform ecosystem: a case of finnish electronic identity management. In: Proceedings of the 51st Hawaii International Conference on System Sciences (2018)

    Google Scholar 

  33. Anthes, G.: Estonia: a model for e-government. Commun. ACM 58, 18–20 (2015)

    Article  Google Scholar 

  34. Iyer, B., Henderson, J.C.: Preparing for the future: understanding the seven capabilities cloud computing. MIS Q. Exec. 9 (2010)

    Google Scholar 

  35. Schneider, S., Sunyaev, A.: Determinant factors of cloud-sourcing decisions: reflecting on the IT outsourcing literature in the era of cloud computing. J. Inf. Technol. 31, 1–31 (2016)

    Article  Google Scholar 

  36. Saya, S., Pee, L.G., Kankanhalli, A.: The impact of institutional influences on perceived technological characteristics and real options in cloud computing adoption. In: ICIS, p. 24 (2010)

    Google Scholar 

  37. Teece, D.J., Pisano, G., Shuen, A.: Dynamic capabilities and strategic management. Strateg. Manag. J. 18, 509–533 (2008)

    Article  Google Scholar 

  38. Dreyfus, D., Iyer, B.: Managing architectural emergence: a conceptual model and simulation. Decis. Support Syst. 46, 115–127 (2008)

    Article  Google Scholar 

  39. Boland, R.J., Lyytinen, K., Yoo, Y.: Wakes of Innovation in project networks: the case of digital 3-D representations in architecture, engineering, and construction. Organ. Sci. 18, 631–647 (2007)

    Article  Google Scholar 

  40. Lyytinen, K., Yoo, Y., Boland, R.J.: Digital product innovation within four classes of innovation networks. Inf. Syst. J., 47–75 (2015)

    Article  Google Scholar 

  41. Eisenhardt, K.M., Martin, J.A.: Dynamic capabilities: what are they? Strateg. Manag. J. 21, 1105–1121 (2000)

    Article  Google Scholar 

  42. Benlian, A., Hess, T., Buxmann, P.: Drivers of SaaS-adoption–an empirical study of different application types. Bus. Inf. Syst. Eng. 1, 357 (2009)

    Article  Google Scholar 

  43. Santos, F.M., Eisenhardt, K.M.: Constructing markets and shaping boundaries: entrepreneurial power in nascent fields. Acad. Manag. J. 52, 643–671 (2009)

    Article  Google Scholar 

  44. Maxwell, J.A.: Understanding and validity in qualitative research. Harv. Educ. Rev. Camb. 62, 279 (1992)

    Article  Google Scholar 

  45. Evans, P.C., Basole, R.C.: Revealing the API ecosystem and enterprise strategy via visual analytics. Commun. ACM 59, 26–28 (2016)

    Article  Google Scholar 

Download references

Acknowledgements

This research was funded by Academy of Finland (304439).

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Anar Bazarhanova .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2019 Springer Nature Switzerland AG

About this paper

Check for updates. Verify currency and authenticity via CrossMark

Cite this paper

Bazarhanova, A., Yli-Huumo, J., Smolander, K. (2019). How Do Practitioners Understand External Platforms and Services? A Grounded Theory Investigation. In: Andersson, B., Johansson, B., Barry, C., Lang, M., Linger, H., Schneider, C. (eds) Advances in Information Systems Development. Lecture Notes in Information Systems and Organisation, vol 34. Springer, Cham. https://doi.org/10.1007/978-3-030-22993-1_7

Download citation

  • DOI: https://doi.org/10.1007/978-3-030-22993-1_7

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-030-22992-4

  • Online ISBN: 978-3-030-22993-1

  • eBook Packages: Computer ScienceComputer Science (R0)

Publish with us

Policies and ethics