Industry Platforms as Facilitators of Disruptive IoT Innovations

Authors

  • Ozgur Dedehayir Queensland University of Technology
  • Cristian Ionuţ Pîrvan Leiden University
  • Hans Le Fever Leiden University

DOI:

https://doi.org/10.4067/S0718-27242019000300018

Keywords:

internet of things, IoT, disruptive innovations, digital platforms, industry platforms

Abstract

We undertake an inductive study of four firms developing industry platforms upon which potentially disruptive IoT products and services are developed by external firms. Our results indicate there to be four types of industry platform (generalist, specialist, technology-centric, and industry-centric), each facilitating a unique mode of disruptive change. We propose that technology-centric platforms are more likely to facilitate business model disruptions, while industry-centric platforms are more likely to facilitate technological disruptions. Generalist industry platforms, by con-trast, are able to facilitate both business model and technological disruptions, given the freedom they allow IoT firms to build their product and service solutions.

Downloads

Download data is not yet available.

References

Ansari, S., & Krop, P. (2012). Incumbent performance in the face of a radical innovation: Towards a framework for incumbent challenger dynamics. Research Policy, 41(8),1357–1374.

Atzori, L., Iera, A., & Morabito, G. (2010). The Internet of Things: A survey. Computer Networks, 54(15), 2787–2805.

Baldwin, C.Y., & Woodard, C.J. (2008). The architecture of platforms: A unified view. Working Papers -- Harvard Business School Division of Research, 1–31.

Bouverot, A. (2015). GSMA: The impact of the Internet of Things. The connected home, 20.

Brown, J., Hendry, C., & Harborne, P. (2007). Developing radical technology for sustainable energy markets: The role of new small firms. International Small Business Journal, 25(6), 603–629.

Burnard, P. (1991). A method of analysing interview transcripts in qualitative research. Nurse Education Today, 11(6), 461–466.

Cennamo, C., & Santalo, J. (2015). How to avoid platform traps. MIT Sloan Management Review, 57(1), 12–15.

Charitou, C.D., & Markides, C.C. (2003). Responses to disruptive strategic innovation. MIT Sloan Management Review, 44(2), 55–63.

Chen, J., Zhang, C., & Xu, Y. (2009). The role of mutual trust in building members’ loyalty to a C2C platform provider. International Journal of Electronic Commerce, 14(1), 147–171.

Chesbrough, H. (2003). Open platform innovation: Creating value from internal and external innovation. Intel Technology Journal, 7(3), 7.

Christensen, C.M. (1997). The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail. Boston: MA: Harvard Business School Press.

Christensen, C.M., & Bower, J.L. (1995). Customer power, strategic investment, and the failure of leading firms. Strategic Management Journal, 17, 197-218.

Christensen, C.M., & Rosenbloom, R.S. (1995). Explaining the attacker’s advantage: Technological paradigms, organizational dynamics, and the value network. Research Policy, 24(2), 233–257.

Cusumano, M. (2010). Technology strategy and management: The evolution of platform thinking. Communications of the ACM, 53(1), 32.

Danneels, E. (2004). Disruptive technology reconsidered: A critique and research agenda. Journal of Product Innovation Management, 21(4), 246–258.

Dedehayir, O., Nokelainen, T., & Makinen, S.J. (2014). Disruptive innovations in complex product systems industries: A case study. Journal of Engineering and Technology Management, 33, 174-192.

Ebersold, K., & Hartford, T. (2015). The impact of disruptive technology: The Internet of Things. Issues in Information Systems, 16(4), 194–201.

Edmondson, A.C., & Mcmanus, S.E. (2007). Fit in methodological management. Academy of Management Review, 32(4), 1155–1179.

Eisenhardt, K.M. (1989). Building theories from case study research. Academy of Management Review, 14(4), 532–550.

Eisenmann, T., Parker, G., & Alstyne, M.W. Van. (2006). Strategies for two- sided markets. Harvard Business Review, 84(10), 12.

Fleisch, E. (2010). What is the Internet of Things? An economic perspective. Economics, Management, and Financial Markets, 5(2), 125–157.

Freeman, J., & Hannan, M.T. (1983). Niche width and the dynamics of organizational populations. American Journal of Sociology, 88(6), 1116-1145.

Frery, F., Lecocq, X., & Warnier, V. (2015). Competing with ordinary resources. MIT Sloan Management Review, Spring, 1–14.

Gawer, A. (2014). Bridging differing perspectives on technological platforms: Toward an integrative framework. Research Policy, 43(7), 1239–1249.

Gawer, A., & Cusumano, M.A. (2013). Industry platforms and ecosystem innovation. Journal of Product Innovation Management, 31(3), 417–433.

Gawer, A., & Cusumano, M.A. (2002). Platform Leadership: How Intel, Microsoft, and Cisco Drive Industry Innovation, Harvard Business School Press: Boston.

Gawer, A., & Henderson, R. (2007). Platform owner entry and innovation in complementary markets: Evidence from Intel. Journal of Economics and Management Strategy, 16(1), 1–34.

Gawer, A., & Phillips, N. (2013). Institutional work as logics shift: The case of Intel’s transformation to platform leader. Organization Studies, 34(8), 1035–1071.

Gilbert, C., & Bower, J.L. (2002). Disruptive change. Harvard Business Review, 80(5), 94–101.

Gubbi, J., Buyya, R., Marusic, S., & Palaniswami, M. (2013). Internet of Things (IoT): A vision, architectural elements, and future directions. Future Generation Computer Systems, 29(7), 1–19.

Hagiu, A. (2014). Strategic decisions for multisided platforms. MIT Sloan Management Review, 55(2), 71–80.

Hagiu, A. (2006). Multi-Sided platforms: From microfoundations to design and expansion strategies. Business, 1–25.

Hagiu, A., & Wright, J. (2015). Multi-sided platforms. International Journal of Industrial Organization, 43, 162–174.

Hagiu, A., & Wright, J. (2013). Structuring your business as a marketplace may seem attractive, but it’s often a recipe for failure. Harvard Business Review, 103–108.

Hannan, M.T., & Freeman, J. (1977). The population ecology of organizations. American Journal of Sociology, 82(5), 929-964.

Harris, I., Wang, Y., & Wang, H. (2015). ICT in multimodal transport and technological trends: Unleashing potential for the future. International Journal of Production Economics, 159, 88–103.

Hoelck, K., & Ballon, P. (2015). Competitive dynamics in the ICT sector Strategic decisions in platform ecosystems. Communications & Strategies, 21.

Kenagy, J.W., & Christensen, C.M. (2002). Disruptive innovation: A new diagnosis for health care’s “financial flu”. Healthcare financial management, 56(5), 62–66.

Loree, D. (2008). Density-dependent strategic action: Outcomes of structural market commitment in the global integrated circuit industry. Journal of Engineering and Technology Management, 25(1-2), 23-57.

Markides, C. (2006). Disruptive innovation: In need of better theory. The Journal of Product Innovation Management, 23(1), 19–25.

Markus, M.L., & Loebbecke, C. (2013). Commoditized digital processes and business community platforms: New opportunities and challenges for digital business strategies. MIS Quarterly, 37(2), 649–654.

Mikusz, M., Jud, C., & Schäfer, T. (2015). Business model patterns for the connected car and the example of data orchestrator. Icsob, 114(April), 261–266.

Muzellec, L., Ronteau, S., & Lambkin, M. (2012). Two-sided Internet platforms: A business model lifecycle perspective. Industrial Marketing Management, 45, 139–150.

Parker, G.G., & Van Alstyne, M.W. (2012). A digital postal platform: Definitions and a roadmap. MIT Sloan School of Management, January, 30.

Parker, G.G., & Van Alstyne, M.W. (2005). Two-sided network effects: A theory of information product design. Management Science, 51(10), 1494–1504.

Rayna, T., Striukova, L., & Darlington, J. (2015). Co-creation and user innovation: The role of online 3D printing platforms. Journal of Engineering and Technology Management, 37, 90-102.

Rodrigues, M.A.D.S., Chimenti, P., Nogueira, A.R.R., Hupsel, L.F., & Repsold, A. (2014). From print to screen: Changes and challenges facing the Brazilian publishing industry. Revista de Administração, 49(3), 491–505.

Sapsed, J., Grantham, A., & DeFillippi, R. (2007). A bridge over troubled waters: Bridging organisations and entrepreneurial opportunities in emerging sectors. Research Policy, 36(9), 1314–1334.

Shea, C.M. (2005). Future management research directions in nanotechnology: A case study. Journal of Engineering and Technology Management, 22(3), 185-200.

Soleimani, F., & Zenios, S. (2011). Disrupting incrementalism in health care innovation. Annals of surgery, 254(2), 203–208.

Tee, R., & Gawer, A. (2009). Industry architecture as a determinant of successful platform strategies: A case study of the i-mode mobile Internet service. European Management Review, 6(4), 217–232.

Thomas, L.D.W., Autio, E., & Gann, D.M. (2014). Architectural leverage: Putting platforms in context. Academy of Management Perspectives, 28(2), 198–219.

Uckelmann, D., Harrison, M., & Michahelles, F. (2011). Architecting the Internet of Things. Architecting the Internet of Things, January, 1–353.

Walsh, S.T. (2004). Roadmapping a disruptive technology: A case study the emerging microsystems and top-down nanosystems industry. Technological Forecasting and Social Change, 71(1-2), 161–185.

Wang, Y., Kung, L.-A., & Byrd, T.A. (2018). Big data analytics: Understanding its capabilities and potential benefits for healthcare organizations. Technological Forecasting and Social Change, 126, 3–13.

Yin, B.R.K. (1994). Case Study Research. Design and Methods. Sage Publications. p.312.

Downloads

Published

2019-10-30

How to Cite

Dedehayir, O., Pîrvan, C. I., & Le Fever, H. (2019). Industry Platforms as Facilitators of Disruptive IoT Innovations. Journal of Technology Management & Innovation, 14(3), 18–28. https://doi.org/10.4067/S0718-27242019000300018

Issue

Section

Research Articles