Intra-Platform Competition: The Role of Strategic and Operational Evolution in App Success

• Other Authors: Liu, Yi (author)
• Format: Others
• Language: English; English
• Published: Florida State University
• Subjects: Business
• Online Access: http://purl.flvc.org/fsu/fd/2018_Fall_Liu_fsu_0071E_14707

A software-based platform brings app developers and customers together. It creates new opportunities for app developers to compete in a dynamically changing marketplace. To survive in intra-platform competition, app developers have to successfully manage and evolve their apps. Intra-platform competition is inherently dynamic due to the rapid growth in apps. Understanding how to be successful in this competition is a critical issue for app developers. In this study, I draw on evolutionary economics theory to reveal what drives app success in intra-platform competition. The research model was tested using survey data collected from 218 app developers on Google Play and objective data collected from three websites (Google Play, AppAnnie, and AppBrain). This study found that the online customer monitoring routine is positively associated with both strategic evolution and operational evolution. Meanwhile, strategic evolution is positively associated with operational evolution. Furthermore, this study found that operational evolution is positively associated with app market performance. This study has three contributions to theory. First, by focusing on the content of evolution such as what and how an app evolves, this study proposes a more comprehensive conceptualization of evolution that includes both strategic evolution and operational evolution, rather than simply the speed of evolution. Second, this study empirically tests the intertwined relationships among strategic evolution, operational evolution, and app market performance, which promote a sound understanding of evolution and its impacts on app success. Third, this study identifies three types of online monitoring routines that allow app developers to continue observing environmental changes in the market. It reveals how app developers leverage their online monitoring routines to influence the evolution of their apps. In this way, this study helps us better understand the role of online monitoring routines in app evolution. This research also makes two contributions to practice. First, unlike previous studies that suggested that fast evolution of an app can lead to better performance, this study shows app developers that how they evolve an app matters. By investigating the impacts of these two types of evolution on app success, this study provides suggestions to app developers that help them improve their app market performance, when they have limited resources to allocate to app evolution. Second, this study also shows app developers that continually observing customers' activities can help them discover ways to evolve their apps, and thus increase an app's market performance. This finding shows app developers the importance of online monitoring routines and helps small or startup app developers with limited resources understand how to access market environment information. === A Dissertation submitted to the Department of Business Analytics, Information Systems and Supply Chain in partial fulfillment of the requirements for the degree of Doctor of Philosophy. === Fall Semester 2018. === August 31, 2018. === Includes bibliographical references. === Ashley A. Bush, Professor Co-Directing Dissertation; Xinlin Tang, Professor Co-Directing Dissertation; Ruby (Pui Wan) Lee, University Representative; Guangzhi Shang, Committee Member.