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PLATFORM ORCHESTRATED ECOSYSTEMS: EMERGING
RESEARCH FOR NEW BUSINESS LANDSCAPE.
Carmelo CENNAMO, PhD
Assistant Professor of Strategy & Entrepreneurship
Bocconi University | Dept. of Management & Technology
Via Roentgen, 1 – 20136 Milano, Italy
carmelo.cennamo@unibocconi.it
CarmeloCennamo | follow me on Twitter | GOLDEN for sustainability – Research coordinator
OBJECTIVES
Platform ecosystems are emerging as a new potent organizational mode of business
transactions in a number of industries. This course will lay the theoretical foundations
for research on two-sided markets and platform orchestrated ecosystems with two
main objectives: first, providing an overview of the essential theoretical
underpinnings and recent research directions in the field of platform markets; second,
exposing students to a new area of research that is permeable to different approaches
and study of different issues of interest to multiple research fields including
innovation, social and strategic networks, transaction costs and industry architecture,
strategy, technology, corporate governance and competition dynamics.
METHODOLOGY AND COURSE REQUIREMENTS
Students will be reading several fundamental articles from the economics,
organization and management literature in order to comprehend the current thinking
in the field and the sources of those views. The emphasis is on the basic building
blocks that will allow us to discuss research gaps, hence opportunities for future
research.
EVALUATION CRITERIA
Grades will be based 60% on class participation and 40% on a paper proposal of 2030 pages (double spaced) ideally linking a student’s research topic of interest with
issues and dynamics of platform markets.
Class participation includes a students’ active and substantive contribution to class
discussion. For every class, each student will prepare one or more of the assigned
readings and then take charge of the discussion for that reading in class. Readings are
assigned at the end of each class for the following meeting. Of course, all students are
expected to have read and thought about all the materials assigned for a given day. A
student taking charge of a discussion segment may also choose to include a short
lecture on how that day’s readings relate to previously discussed material or important
current issues, including her/his own research. Additionally, a very short written
summary for each assigned reading should be prepared and provided to all fellow
students.
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For the final paper, each student will submit a 1-2 pages proposal right after last day
of class. The actual paper, if the proposal is accepted, will then be due 1 month after
the last class meeting. Specifics regarding the content of the paper will be discussed in
class.
PROGRAM
Session 1: Two-sided Markets
Assigned readings:
Rochet J-C, Tirole J. 2006. Two-sided markets: A progress report. Rand Journal of
Economics 37: 645-667
Rysman, M. 2009. The Economics of Two-Sided Markets. Journal of Economic
Perspectives, Vol. 23 No.3, pp. 125-144.
Parker GG, Van Alstyne MW. 2005. Two-Sided Network Effects: A Theory of
Information Product Design. Management Science 51: 1494–1504
Hagiu A. 2009. Two-sided platforms: Product variety and pricing structures. Journal
of Economics and Management Strategy 18: 1011–1043
Corts KS, Lederman M. 2009. Software exclusivity and the scope of indirect network
effects in the U.S. home video game market. International Journal of Industrial
Organization 27: 121-136
Sun M, Tse E. 2007. Sustainable growth of payment card networks: A two-sided
market approach Journal of Business Strategies 24: 165-191
Suggested readings (not compulsory):
Roson R. 2005. Two-sided markets: A tentative survey. Review of Network
Economics 4: 142-159
Kaiser U, Wright J. 2006. Price structure in two-sided markets: Evidence from the
magazine industry. International Journal of Industrial Organization 24: 1–28
Session 2: Platform competition: Strategic and Innovation issues
Assigned readings:
Suarez FF. 2004. Battles for technological dominance: an integrative framework.
Research Policy 33(2): 271
Shankar V, Bayus BL. 2003. Network effects and competition: An empirical analysis
of the home video game industry. Strategic Management Journal 24(4): 375
Schilling MA. 2002. Technology success and failure in winner-take-all markets: The
impact of learning orientation, timing, and network externalities. Academy of
Management Journal 45: 387-398
Boudreau K. (2010), “Let a thousand flowers bloom? Growing an applications
software platform and the rate and direction of innovation”, Organization
Science, (forthcoming).
Cennamo C., Santaló J. (2012). Platform Competition: Strategic Tradeoffs in Platform
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Markets, Strategic Management Journal (forthcoming)
Visnjic I., Cennamo C. (2012). Competing beyond network effects: A business model
perspective on competitive dynamics in platform markets. Working paper,
Esade Business School
Suggested readings (not compulsory):
Lee E, Lee J, Lee J. 2006. Reconsideration of the winner-take-all hypothesis: complex
networks and local bias. Management Science 52: 1838–1848
Venkatraman N, Lee C-H. 2004. Preferential linkage and network evolution: A
conceptual model and empirical test in the U.S. video game sector. Academy of
Management Journal 47(6): 876-892
Session 3: Ecosystem orchestration
Assigned readings:
Dhanaraj C, Parkhe A. 2006. Orchestrating innovation networks. Academy of
Management Review 31: 659–669
Nambisan S., Sawhney M. 2011. Orchestration Processes in Network-Centric
Innovation: Evidence From the Field. Academy of Management Perspectives,
August: 40–57
Benoît Demil and Xavier Lecocq. 2006. Neither Market nor Hierarchy nor Network:
The Emergence of Bazaar Governance. Organization Studies 27(10): 1447–
1466
Gawer A., Henderson R. 2007. Platform Owner Entry and Innovation in
Complementary Markets: Evidence from Intel. Journal of Economics and
Management Strategy, Volume 16 (1): 1–34
Boudreau K. 2010. Open Platform Strategies and Innovation: Granting Access vs.
Devolving Control. Management Science, Vol. 56 (10): 1849–1872.
Cennamo C. 2012. Orchestrating the ecosystem in the race for the market: How
platforms build and expand their ecosystem overtime. Working paper, Bocconi
University
Suggested readings (not compulsory):
Williamson P.J., De Meyer A. 2012. Ecosystem Advantage: How to successfully
harness the power of partners. California Management Review vol.55 n.1: 24–
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