Who Joins the Platform? The Case of the RFID Business Ecosystem

Authors:
Anne Quaadgras
Affiliations:
Boston University
Venue:
HICSS '05 Proceedings of the Proceedings of the 38th Annual Hawaii International Conference on System Sciences - Volume 08
Year:
2005

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Abstract

Today, many knowledge-based technology applications form a business ecosystem: a set of complex products and services made by multiple firms in which no firm is dominant. For this paper the emerging radio frequency ID (RFID) ecosystem was built based on firms' alliance announcements, and propositions around the behavior of large, multi-line technology firms in this network were analyzed. The RFID network is used to empirically show that absorptive capacity, and exploration vs. exploitation theories may explain some behavior of large firms. Specifically, a propensity to form alliances in general makes it more likely large firms will join the RFID ecosystem, and more exploratory firms join earlier. Greater availability of slack resources also leads to the formation of more alliances in the network. The ecosystem perspective and these results may influence alliance decisions of firms entering into high cost technological innovations.