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Value Creation of Platform Mediated Networks in the Mobile Industry

Value Creation of Platform Mediated Networks in the Mobile Industry

David López-Berzosa, Gloria Sánchez-González, Carmen De Pablos Heredero
Copyright: © 2012 |Volume: 4 |Issue: 3 |Pages: 12
ISSN: 1938-0194|EISSN: 1938-0208|EISBN13: 9781466614710|DOI: 10.4018/jwp.2012070103
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MLA

López-Berzosa, David, et al. "Value Creation of Platform Mediated Networks in the Mobile Industry." IJWP vol.4, no.3 2012: pp.35-46. http://doi.org/10.4018/jwp.2012070103

APA

López-Berzosa, D., Sánchez-González, G., & Heredero, C. D. (2012). Value Creation of Platform Mediated Networks in the Mobile Industry. International Journal of Web Portals (IJWP), 4(3), 35-46. http://doi.org/10.4018/jwp.2012070103

Chicago

López-Berzosa, David, Gloria Sánchez-González, and Carmen De Pablos Heredero. "Value Creation of Platform Mediated Networks in the Mobile Industry," International Journal of Web Portals (IJWP) 4, no.3: 35-46. http://doi.org/10.4018/jwp.2012070103

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Abstract

This paper analyzes emerging models of governance in platform-mediated networks subject to winner-takes-all competition regimes. The results show how modularity, an important attribute in technological systems, plays an important role in competition dynamics. The study is applied to the mobile networks industry, a highly dynamic and technology intensive sector, ideally suited to conduct research on competition under strong network effects. Based on the information coming from an important firm in this sector, the paper finds that proprietary technological platforms require a large set of external contributors to ensure sustainable rates of development and innovation. The authors’ results also suggest that, contrary to established theory, firms may opt for proprietary platforms rather than shared governance models and, nonetheless, they are able to successfully compete against the established ones.

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