Exploring power dynamics in digital platforms: a resource dependence perspective

Digital platforms, the core technology upon which a crowd of participant firms (“complementors”) provide their products for consumers, has been transforming business landscapes. There is an excessive power asymmetry between the platform owner, who also governs the platform, and complementors. Understanding power dynamics between the platform owner and complementors is vital to comprehend innovation and other forms of value creation in such platforms. 

This project aims to study how complementors respond to platform owner-imposed governance mechanisms; especially, how they manage the power asymmetry and related constraints and uncertainty in order to drive product innovation and firm growth. In this project, we explore this question with the research context of smartphone apps platforms, using a qualitative-quantitative methodology. We try to discover patterns of powerplay on the platforms that significantly impact the process and outcomes of value creation.