Compatibility promotion between platforms: The role of open technology standards and giant platforms

Abstract Most platform literature focuses on single platforms and their governance, e.g. concerning app developers. Yet, competition dynamics are increasingly important as they form connections with each other build complex networks. More focus platform-to-platform relationships the role of standards is warranted. Therefore, goal this study to investigate how sponsors select promote compatible own products, taking open “giant platforms” into account. To address these questions, we construct a unique data set covering 157 in smart home market. We conduct network analysis based an exponential random graph model (ERGM) incorporate features, dyadic characteristics, structural processes. find that compatibility promotion determined by careful selection dissimilar industry sectors ecosystem niches. identify two strategic approaches compatible, standard complementarity size installed base. more often similar supported standards. The majority endorsements directed at giant platforms, allowing support smaller number thus reduced degree openness technology level. Platforms integrate several same time. Our makes major contributions literature. First, extend concept selective (Rietveld et al. 2019) include inter-platform Second, demonstrate compensate for higher accessibility level transparency marketplace