Institutional Impact on Digital Platform Ecosystem and Innovation

Ochinanwata, Chinedu, Igwe, Paul and Radicic, Dragana (2023) Institutional Impact on Digital Platform Ecosystem and Innovation. International Journal of Entrepreneurial Behavior & Research (IJEBR) . ISSN 1355-2554

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infrastructure and resources to provide goods or services. This article investigates how institutions influence
the development of the DP entrepreneurship ecosystem (EE) in a developing economy context.
Design/methodology/approach – An exploratory qualitative approach based on interviews with 33 DP business executives in Nigeria was the chosen research method. The interview method took the form of face-to-face, telephone and zoom video meetings, depending on the respective preferences of the participants. The research philosophy is based on interpretivism. Hence, the collected data were analyzed thematically and interpreted to make sense of the business executives’ perspectives about the DP landscape as well as its institutional enablers and barriers.
Findings – The findings reveal institutional elements that are either too underdeveloped or weak to nurture an effective DP system resulting in high cost of doing business. A key cultural challenge is obtaining an honest workforce and managers. Also, there is lack of effective policies, weak regulation, multiple taxation and foreign competition, which affects local digital firms. Although cultural diversity has several merits, differences in cultural values and languages create marketing and promotion challenges. Moreover, the low level of digital literacy between Generation Z, Millennials and others, such as Baby Boomers and Generation X, poses a significant challenge concerning customer segmentation.
Research limitations/implications – Research on digital technologies, the complexity of platform architectures and institutional logic has attracted interest in recent years. This article explored the institutional logic influencing the development of DP ecosystem (providing knowledge about EE in a developing world context). Despite the institutional challenges, there are multiple opportunities for Nigerian DP sector to flourish in the fast-growing economy.
Originality/value – The value of this article is related to how micro-, meso- and macro-institutional forces combine to support or become barriers to the development of the DP ecosystem, especially in developing economies where digitalization is creeping into every business sector and society.

Keywords:Digital platform and models, Digital platform capability, Institutional logic, Ecosystem resilience, African entrepreneurship ecosystem
Subjects:N Business and Administrative studies > N100 Business studies
Divisions:COLLEGE OF ARTS, SOCIAL SCIENCES AND HUMANITIES > Lincoln International Business School
ID Code:55504
Deposited On:10 Aug 2023 07:52

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