How New Kids on the Block Shape Competition on the Battleground - Reversing Value Creation Strategies of Industrial Internet-of-Things Platforms

Previous research has drawn attention primarily to digital consumer platforms, yet ignoring the specificities of industrial settings. Hence, existing research findings may fall short regarding Industrial Internet-of-Things Platforms (IIoTP), leading to an incomplete understanding of digital platforms. Particularly, IIoTPs from Internet technology firms (Hyperscalers) and incumbent industrial firms (Integrated IIoTPs) as new kids on the block deserve special interest due to their coopetitive relationships at different vertical platform levels. Addressing this research need, the study applies explorative multiple case study research to three of these IIoTPs. Based on existing frameworks and classifications, the authors empirically derive (1) which strategic measures are needed for a successful evolvement, and (2) which dynamic strategic trajectories occur. This study contributes to the literature by showing that existing theories of digital platforms are fertile ground for further and more nuanced empirical research in the IIoTP context. Through the linkage of five strategic measures to the dominant value creation logics, the authors provide important contextualization on different vertical platform layers. Finally, the study offers IIoTP managers insights by identifying dynamic strategic trajectories that reveal Hyperscalers are in the best position to profit from innovation in the IIoTP market, thereby reversing the common notion that downstream positioning is prerequisite to succeed