Multi-homing in ecosystems and firm performance: Does it improve software companies' ROA?

Sami Hyrynsalmi, Arho Suominen, Slinger Jansen, Katariina Yrjönkoski

Research output: Contribution to journalArticleScientificpeer-review

3 Citations (Scopus)

Abstract

Joining or leaving a platform ecosystem is a crucial strategic decision for a software producing organization. Multi-homing is strategy where a company participate more than one platform ecosystem. A decision to multi-home entails considerable impact for companies, as entering into a new ecosystem always requires investments in, e.g., developing, maintaining and marketing a platform specific extension. While a costly decision, it also opens new markets in domains where customers seldom multi-home, i.e., it is a reliable way to address new markets. Multi-homing strategies are infrequently addressed topic in the literature and their impacts on the performance of the companies are rarely analyzed. In this paper, we study how the decision to multi-home a ects to the performance of Finnish game companies. Our results question previous assumptions that multi-homing has a positive impact on firm performance, as our study finds is unable to find support for the di erences in performance for single- or multi-homing companies. This might be due to a development in which it is a norm in the market is to publish simultaneously for all ecosystem in order to consolidate their position in the market.
Original languageEnglish
Pages (from-to)56-69
JournalCEUR Workshop Proceedings
Volume1808
Publication statusPublished - 2016
MoE publication typeA1 Journal article-refereed
EventInternational Workshop on Software Ecosystems, IWSECO 2016 - Dublin, Ireland
Duration: 10 Dec 2016 → …

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Ecosystems
Industry
Joining
Marketing

Keywords

  • multi-homing
  • platforms
  • software ecosystems
  • strategic management
  • two-sided markets

Cite this

Hyrynsalmi, Sami ; Suominen, Arho ; Jansen, Slinger ; Yrjönkoski, Katariina. / Multi-homing in ecosystems and firm performance : Does it improve software companies' ROA?. In: CEUR Workshop Proceedings. 2016 ; Vol. 1808. pp. 56-69.
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Multi-homing in ecosystems and firm performance : Does it improve software companies' ROA? / Hyrynsalmi, Sami; Suominen, Arho; Jansen, Slinger; Yrjönkoski, Katariina.

In: CEUR Workshop Proceedings, Vol. 1808, 2016, p. 56-69.

Research output: Contribution to journalArticleScientificpeer-review

TY - JOUR

T1 - Multi-homing in ecosystems and firm performance

T2 - Does it improve software companies' ROA?

AU - Hyrynsalmi, Sami

AU - Suominen, Arho

AU - Jansen, Slinger

AU - Yrjönkoski, Katariina

PY - 2016

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