发布时间：2019-04-28
College of Management and Economics
April 3th
The research achievement “First-or Second-Mover Advantage? The Case of IT-Enabled Platform Market” conducted by Professor Min-qiang Li, head of the information management and business intelligence team of the CoME and team members Professor Nan Feng and Associate Professor Hai-yang Feng in collaboration with Professor Zheng-rui Jiang of Iowa State University, is employed by MIS Quarterly, an international top academic journal in the field of management information system.(https://www.misq.org/forthcoming/)
MIS Quarterly is listed in the 24 UT/DALLS journals and the 50 top business journals of Financial Times that are generally recognized by business schools worldwide.
The research achievement was the team's secondary publication in the top journal of the business school after publishing an article in MIS Quarterly in 2018.
Min-qiang Li, Zheng-rui Jiang, Nan Feng, Hai-yang Feng (left to right, top to bottom)
With the rapid development of information technology, the Internet platform constantly emerge in different business sectors, such as: online auction or retail (Amazon, Taobao, Jingdong), social network (Facebook, Wechat, Weibo), application market (App Store and Google Play), cloud computing platform (Amazon AWS, Microsoft Azure), mobile payment (Mahala, Pay Treasure, WeChat Wallet), etc.
Based on advanced Internet communication technologies, these Internet platforms connect consumers and producers or services producer. In the government work report in 2019, we will adhere to inclusive and prudent regulation, support the development of new business forms and models, and promote the healthy growth of the platform economy and the sharing economy. Among them, promoting platform economic development has been written into the government work report for two consecutive years.
This fully demonstrates the important role of platform economy in China's industrial upgrading and economic restructuring, and also constitutes an urgent need for theoretical research and industrial innovation in the field of Internet platform.
Based on the first-mover advantage and the second-mover advantage in the platform market, the information management and business intelligence team of the CoME carried out a cooperative research with Professor Zheng-rui Jiang of Iowa State University.
In this study, the conditions for the emergence of first-mover advantage and second-mover advantage in the platform market with simultaneous same-edge network effect and trans-edge network effect are analyzed by game theory model, and the order of equilibrium market entry of the two competitive platforms is solved.
The research reveals for the first time that the occurrence of the first-mover/second-mover advantage depends on the following three factors: the technological development speed of the second-mover, the length of the product life cycle and the length of the market growth period. When any one of the three factors is small, both platforms want to be the first mover in the market. Otherwise, the two platforms will choose to enter the market in order in most cases.
In addition, this paper also studies the influence of network effect of the same-side and cross-side network effect on first-mover advantage and second-mover advantage. The results show that the enhancement of network effect of the same-side will enhance the first-mover advantage, while the enhancement of cross-side network effect will enhance the second-mover advantage.
The research has important guiding significance to the platform enterprises’s decision making of the sequence and time of market entry in the competitive environment. It can help different types of platform enterprises to develop a reasonable market entry plan in the face of different market situations to obtain first-mover advantage or second-move advantage and provide decision support for platform design and market entry for Internet platform entrepreneurs. At the same time, it can also be used to guide the government to formulate industrial development policies and regulate the competition in the platform market.
