Control in App Platforms: The Integration-Differentiation Paradox

Despite violations of several common assumptions regarding the use of control, platform ecosystems rely heavily on such mechanisms. This calls into question whether controls serve purposes other than just the alignment of their participants’ interests, as the extant literature suggests. We develop a model that explains how and why control mechanisms influence performance of applications in a mobile computing platform ecosystem. Our model uncovers an apparent paradox in that controls influence performance because they promote knowledge integration but simultaneously inhibit differentiation. Knowledge is embedded within controls, which allows developers to leverage it in developing high-quality applications. However, leveraging the same knowledge stock inhibits the extent to which developers can differentiate their work from others. Taking into consideration endogenous instruments of control, we will test our model using data collected from Research-in-Motion’s Blackberry AppWorld. Our results will extend the current understanding of the purpose and use of controls in platform