Software platform owners' entry and application developers' innovations : a conceptual model

Purpose: The primary aim of this article is to develop an understanding that resolves and integrates the conflicting findings with regard to the effects of platform-owner entry on the innovation of individual complementors. Design/methodology/approach: Drawing on the platform ecosystem literature and the profiting from innovation (PFI) framework, this study presents a conceptual model that articulates how developers' marketing capabilities and the size of platform's installed base are two key moderators that explain the conflicting results between platform-owner entry and complementor innovations. Findings: This article theorizes that platform owners' entry stimulates developers' innovations when the size of platform's installed base is large or when developers' marketing capabilities are strong while the entry can discourage innovations otherwise. Originality/value: By proposing the conceptual model, this article makes important theoretical contributions to the rising literature on platform governance and complementor innovations. It lays a foundation for future research exploring the implications of platform-owner entry.