Value Creation and Power Asymmetries in Digital Ecosystems : A Study of a Cloud Gaming Provider

Abstract

Digital platforms connecting users and service providers have a central role in determining the value creation structure of ecosystems. Platform developers try to achieve a dominant position for the platform with a strong ecosystem around it. The size and attractiveness of the services can attract new users, and growing user volume can bring new co-operative service providers to the service partner network. An interesting question is how the presence of power and potential power asymmetry affect the value creation capability and the structure of a network around a platform? This chapter describes an example of value creation and the influence of power asymmetry in a digital ecosystem built around a cloud gaming platform.