6533b7dafe1ef96bd126ec95

RESEARCH PRODUCT

Diversification and performance in the mobile app market: The role of the platform ecosystem

Paolo RomaMaria Vasi

subject

Open platformKnowledge management020209 energyInformationSystems_INFORMATIONSTORAGEANDRETRIEVALInformation technology02 engineering and technologyDiversification (marketing strategy)App storeManagement of Technology and Innovationmental disorders0502 economics and business0202 electrical engineering electronic engineering information engineeringRevenueEcosystemBusiness and International ManagementMarket shareMobile app marketApplied Psychologybusiness.industry05 social sciencesInformation technologySettore ING-IND/35 - Ingegneria Economico-GestionaleClosed platformPlatform ecosystemDiversificationbusiness050203 business & management

description

Abstract We examine the effect of app developers' product line diversification decision on their performance and shed light on whether the type of platform ecosystem (open versus closed) where they commercialize apps influences this effect. We compare the revenue performance of diversified and specialized developers in Apple's App Store and Google Play. We show that in the Apple's App Store (closed platform) diversified developers always display lower performance than their specialized counterparts. In Google Play (open platform) diversification is beneficial in categories where diversified developers have predominant market share, whereas it is detrimental in categories dominated by specialists. Hence, platform supply side users, such as app developers, should factor in the platform ecosystem where they operate when making diversification decisions.

yearjournalcountryeditionlanguage
2019-10-01Technological Forecasting and Social Change
https://doi.org/10.1016/j.techfore.2019.07.003