Publications

With our publications we cover the most diverse research areas that arise in the field of man, task and technology. In addition to traditional Business Information Systems topics such as knowledge management and business process management, you will also find articles on current topics such as blended learning, cloud computing or smart grids. Use this overview to get an impression of the range and possibilities of research in Business Information Systems at the University of Duisburg-Essen.

Type of Publication: Article in Journal

Establishing Successful E-Commerce Ecosystems: Evluating Strategies for Reaching a Critical Mass of Participants

Author(s):
Wulfert, Tobias; Dennhardt, Benjamin
Title of Journal:
Corporate Ownership Control
Volume (Publication Date):
20 (2023)
pages:
130-145
Digital Object Identifier (DOI):
doi:10.22495/cocv20i3art9
Citation:
Download BibTeX

Abstract

Although e-commerce in general and platform business models in e-commerce report steadily increasing revenues, establishing e-commerce ecosystems is not a guaranteed success per se. Potential platform owners must carefully plan the ignition of the ecosystem to reach a critical mass of customers. This critical mass is crucial for the platform to benefit from direct and indirect network effects. However, research so far has not provided clear guidance and strategies on how to successfully establish ecosystems in e-commerce. Therefore, we evaluated and demonstrated generic platform ignition strategies in e-commerce. Our evaluation is thereby based upon an established mathematical model for two-sided markets considering utility gains from indirect network effects and costs. The heterogeneity of the individual market sides is reflected in the form of sigmoidal distribution functions. Applying this model, we show that subsidies, seeding, marquee, single side, micro market, piggybacking, opening up, and big bang marketing are potential strategies for reaching a critical mass of participants in e-commerce ecosystems. We provide guidance for practitioners on how to establish successful e-commerce ecosystems. We contribute to the body of knowledge strategies in e-commerce ecosystems by bridging critical mass and network effects.