Abstract
Research on platforms and competition in digital markets has grown considerably in the last decade. Studies show that the influence of individual platforms often results from a platform ecosystem that is joined by different companies, sometimes even direct competitors. However, there is a limited understanding of how networks are created around platforms and why direct competitors join forces and ...
Abstract
Research on platforms and competition in digital markets has grown considerably in the last decade. Studies show that the influence of individual platforms often results from a platform ecosystem that is joined by different companies, sometimes even direct competitors. However, there is a limited understanding of how networks are created around platforms and why direct competitors join forces and start cooperating with each other. In this paper, we investigate the influence of platforms and other important factors on cooperation activities between competitors in the German financial market in order to draw a more refined and comprehensive picture of coopetition networks. We investigate various drivers of coopetition—external drivers (i.e., platforms, AI, blockchain technology, and banking license), relation-specific drivers (i.e., type of company and position in the network), form of coopetition, and endogenous network effects and ask the question: how do platforms influence coopetition in the financial market and which factors influence network development in financial markets? We employ a social network analysis approach, namely, an exponential random graph model (ERGM), to analyze 371 companies in the German financial sector. Our results show that platforms have a significant positive impact on coopetition. Further, our study demonstrates the influence of regulatory requirements as well as relationship and partner characteristics on coopetition and network development.
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