Exploring Value Creation Through Application Programming Interfaces

Abstract

Digital platforms continue to contribute to the global economy by enabling new forms of value creation. Whereas the Information Systems literature is dominated by digital platform research, less is said about Application Programming Interfaces (APIs), the engine behind digital platforms. More so, there is a dearth in the literature on how developing economy firms create value through API integration. To address these research gaps, the author conducted a case study on DigMob (Pseudonym), a digital firm that focuses on the sale of indigenous African music to understand how it created value through API integration. Based on Amit and Zott's value creation model, the findings suggest that DigMob's value creation occurs on a broader value network comprising suppliers (e.g., payment service providers) and customers. For instance, DigMob generated value through the API-enabled platform by ensuring that music lovers purchase their preferred songs at competitive prices. DigMob has also been able to increase their revenue and brand image. Similarly, musicians have been able to rake substantial amounts of money through the sales of their music on the platform.