Journal
JOURNAL OF BUSINESS RESEARCH
Volume 144, Issue -, Pages 627-636Publisher
ELSEVIER SCIENCE INC
DOI: 10.1016/j.jbusres.2021.12.073
Keywords
Platform-owner entry; Competition effect; Spillover effect; Platform support; Commitment
Categories
Funding
- National Natural Science Founda-tion of China [71902067]
- National Natural Science Foundation of China Key Program [71832010]
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This study investigates the impact of platform-owner entry on third parties' commitment to a platform and proposes two mechanisms, competition and spillover, to explain this impact. The findings suggest that platform-owner entry can both dampen third-party providers' commitment and lead to a win-win situation, depending on the level of platform support.
Platform owners occasionally enter third-party providers' markets with similar offerings. This study investigates the influence of such platform-owner entry on third parties' commitment to a platform. We posit two competing mechanisms that explain the impact of platform-owner entry: the competition and spillover mechanisms. The competition mechanism suggests that a platform owner's entry dampens third-party providers' commitment, primarily due to intensified competition, while the spillover mechanism predicts the opposite effect because of increased consumer awareness. Furthermore, we contend that under high (low) platform support, the mediating role of the spillover (competition) effect is strengthened. To test these propositions, we conducted a survey and collected data from platform providers in multiple industries. Overall, our findings support our hypotheses, which suggest that platform-owner entry is a double-edge sword. The entry may crowd out third-party providers, but it can also be a win-win for a platform and providers in the context of high platform support.
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