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Platform as a Strategy: Collective Innovation in Mobile Payment Ecosystem
Abstract
Mobile payments are a new way to pay in the digital age. The emerging mobile payments enable viable businesses through real-time and context-specific transactions between consumers and collaborating actors. Mobile payment services realize in a multi-actor digital chain. Business interactions between actors take place in a coopetitive way: simultaneous competition and collaboration. However, little knowledge exists about mobile payment innovation strategy in coopetitive markets. This paper introduces the DISCO model (dynamics of innovation strategy in a coopetitive environment). It contributes to the exploration of strategic moves by mobile payment innovators through platform ecosystems. Our results from a case study indicate that firms have the potential to be successful through collective innovation in a coopetitive environment along with the movement of their superior competencies. Moreover, the firms should pursue ways in managing the paradoxical relationships between competition and cooperation, resource allocation and combination, as well as leadership and loss-leader strategy.
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