Value co-creation and appropriation of platform-based alliances in cooperative advertising

Lu Zhang; Fengwen Chen; Senmao Xia; Dongmei Cao; Zhen Ye; Chengran  Shen; Gideon Maas; Yimeng Li

doi:10.1016/j.indmarman.2021.06.001

Value co-creation and appropriation of platform-based alliances in cooperative advertising

Lu Zhang, Fengwen Chen, Senmao Xia, Dongmei Cao, Zhen Ye, Chengran Shen, Gideon Maas, Yimeng Li

CBL International Centre for Transformational Entrepreneurship (ICTE)

Research output: Contribution to journal › Article › peer-review

32 Citations (Scopus)

165 Downloads (Pure)

Abstract

Digital platforms help develop the open value co-creation strategic alliances, reshape traditional B2B relationships, and promote inclusive social innovation. This research explores the nature of coopetition between the digital platform and its participants. The focus is on how the platform-based alliance balances the contradiction between value creation and appropriation. The support evidence derives from a Stackelberg game in the context of cooperative advertising. Either the platform or the participant supporting advertising in the alliance prompts a Pareto improvement for all players. But the increased profit would be mainly occupied by the dominant platform. The incentive mechanism of profit sharing can promote the alliance to co-create value in a sustainable manner. The game illustrates the significance of cooperative relationships to co-create a larger total value and the existence of an unequal win-win relationship in the strategic alliance. The contradictory logic of cooperation and competition can be accommodated in the platform-based alliance. The dynamic coopetition is involved in a partially convergent interest structure and impacted by power asymmetry. The results highlight the balance between the tensions and harmonies through value creation and appropriation.

Original language	English
Pages (from-to)	213-225
Number of pages	13
Journal	Industrial Marketing Management
Volume	96
Early online date	8 Jun 2021
DOIs	https://doi.org/10.1016/j.indmarman.2021.06.001
Publication status	Published - Jul 2021

Bibliographical note

© 2021, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/

Copyright © and Moral Rights are retained by the author(s) and/ or other copyright owners. A copy can be downloaded for personal non-commercial research or study, without prior permission or charge. This item cannot be reproduced or quoted extensively from without first obtaining permission in writing from the copyright holder(s). The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the copyright holders.

This document is the author’s post-print version, incorporating any revisions agreed during the peer-review process. Some differences between the published version and this version may remain and you are advised to consult the published version if you wish to cite from it.

Funder

National Natural Science Foundation of China (Grant NO. 71772019 ), the Fundamental Research Funds for the Central Universities (Grant NO. 2020CDJSK02XK16 ) and the Graduate Research and Innovation Foundation of Chongqing, China (Grant NO. CYB20051 ).

Keywords

Cooperative advertising
Coopetition
Platform-based Alliance
Power asymmetry
Value appropriation
Value co-creation

ASJC Scopus subject areas

Marketing

Access to Document

10.1016/j.indmarman.2021.06.001

Post-PrintAccepted author manuscript, 2.07 MBLicence: CC BY-NC-ND

Cite this

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title = "Value co-creation and appropriation of platform-based alliances in cooperative advertising",

abstract = "Digital platforms help develop the open value co-creation strategic alliances, reshape traditional B2B relationships, and promote inclusive social innovation. This research explores the nature of coopetition between the digital platform and its participants. The focus is on how the platform-based alliance balances the contradiction between value creation and appropriation. The support evidence derives from a Stackelberg game in the context of cooperative advertising. Either the platform or the participant supporting advertising in the alliance prompts a Pareto improvement for all players. But the increased profit would be mainly occupied by the dominant platform. The incentive mechanism of profit sharing can promote the alliance to co-create value in a sustainable manner. The game illustrates the significance of cooperative relationships to co-create a larger total value and the existence of an unequal win-win relationship in the strategic alliance. The contradictory logic of cooperation and competition can be accommodated in the platform-based alliance. The dynamic coopetition is involved in a partially convergent interest structure and impacted by power asymmetry. The results highlight the balance between the tensions and harmonies through value creation and appropriation.",

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Value co-creation and appropriation of platform-based alliances in cooperative advertising

Abstract

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Keywords

ASJC Scopus subject areas

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