Incumbent joint ventures in digital platforms: exploring the role of intangible assets

What the paper says

Purpose This research shows that intangible assets play a vital role in early-stage digital platform joint ventures, but they must be carefully managed to maintain their positive impact. Design/methodology/approach The study follows a multi-case study approach in the European automotive industry. Findings The study identifies (1) Digital platform know-how, (2) Marketing Assets, and (3) Core platform data as three critical intangible assets to effectively integrate to establish a sustainable platform ecosystem. All three assets can be critical for platform success, but relate to different stages of platform maturity and the type of platform. Furthermore, we identify two types of risks associated with intangible assets that may harm the platform owner (strategic risks) or those that threaten the success of the platform endeavor (cooperation risk). Last, our research shows that the number and diversity of joint venture partners are decisive for the stability and success of the entire platform. Research limitations/implications This work contributes to digital platform research by providing a framework to help joint ventures select relevant assets and partner configurations while monitoring the risks associated with sharing these assets. We thus broaden the picture in digital platform research by deepening the understanding of resource requirements along the development process of digital platforms. Furthermore, we contribute to coopetition research by adding a multi-sided platform perspective to a primarily two-sided conceptualization of this research landscape. Practical implications This research provides managers with insights into the digital platform know-how, marketing assets, and core platform data are essential to build platforms. Additionally, we highlight the associated risks and offer evidence-based examples of effective implementation practices. Originality/value Existing research on digital platforms predominantly centers on platform-native firms, despite the growing practical significance of platforms developed by incumbent firms. While incumbents often engage in cooperative strategies during platform development, the influence of intangible assets in this context remains underexplored in the academic literature.