Effectiveness of Ecosystem Strategies for the Sustainability of Marketplace Platform Ecosystems

Abstract

Physical intermediary firms, such as logistics firms, are the foundation of marketplace platform ecosystems. This study introduces the case of a delivery crisis caused by the withdrawal of major logistics firms from the Japanese marketplace platform. To address such a problem, this study considers the application of an “ecosystem strategy”. We define an ecosystem strategy in this situation, as “the strategy by which the platform owner cooperates with logistics firms to standardize logistics services and provides a platform system to improve cooperation among them”. We constructed an agent-based simulation system customized by a dataset of Japanese platform-based markets to test the effectiveness of the proposed strategy. The results indicate that the introduction of the ecosystem strategy postponed the start of the collapse. It also increased the number of platform users by roughly 1.10 times and increased the total profits of logistics firms about 1.22 times. Additionally, it removed the trade-off relationship between platform users and the profits of logistics firms and allowed the maximization of both. This study contributed to the research stream of platform ecosystems by defining an ecosystem strategy, including physical intermediary firms, and verifying the effectiveness of the strategy for ecosystem evolution and sustainability.