Cross-Category Innovation Strategy and Evolution of Digital Platform Ecosystems: A Technology-Driven Perspective

Digital platform ecosystems confront critical management challenges as they overcome path dependence amid rapid technological change. This study explores cross-category innovation as a key strategic action, using a longitudinal case study of ByteDance to analyze how digital technology drives ecosystem evolution, and constructs a “technology-driven–strategic action–ecosystem evolution” framework to examine the interplay between technological capabilities and strategic actions. Findings identify two stages: in the category emergence stage, platforms establish a core business ecosystem via identity, legitimacy, and differentiation strategies, leveraging technologies like algorithmic recommendation to shape user cognition and market legitimacy. In the category spanning stage, platforms leverage platform envelopment, open innovation, and status strategies to expand cross-category ecosystems, enabling technological spillover and integrated innovation across new domains. The findings reveal a co-evolution mechanism of cross-category innovation strategy and ecosystems, where the cross-category innovation strategy serves as both a driving force for ecosystem evolution and acquires new strategic opportunities. This study offers insights for building sustainable ecosystems that transcend industry boundaries and enhance resilience.

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Publication Details

Journal
Sustainability
Published
2025-06-02
DOI
https://doi.org/10.3390/su17115113
Primary Topic
Digital Platforms and Economics
Type
article
Field-Weighted Citation Impact
0.00

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article

Cross-Category Innovation Strategy and Evolution of Digital Platform Ecosystems: A Technology-Driven Perspective

Bing Gu, Fangcheng Tang, Shuo Sun
Sustainability
Digital Platforms and Economics
article

Cross-Category Innovation Strategy and Evolution of Digital Platform Ecosystems: A Technology-Driven Perspective

Bing Gu, Fangcheng Tang, Shuo Sun
article en

Abstract

Digital platform ecosystems confront critical management challenges as they overcome path dependence amid rapid technological change. This study explores cross-category innovation as a key strategic action, using a longitudinal case study of ByteDance to analyze how digital technology drives ecosystem evolution, and constructs a “technology-driven–strategic action–ecosystem evolution” framework to examine the interplay between technological capabilities and strategic actions. Findings identify two stages: in the category emergence stage, platforms establish a core business ecosystem via identity, legitimacy, and differentiation strategies, leveraging technologies like algorithmic recommendation to shape user cognition and market legitimacy. In the category spanning stage, platforms leverage platform envelopment, open innovation, and status strategies to expand cross-category ecosystems, enabling technological spillover and integrated innovation across new domains. The findings reveal a co-evolution mechanism of cross-category innovation strategy and ecosystems, where the cross-category innovation strategy serves as both a driving force for ecosystem evolution and acquires new strategic opportunities. This study offers insights for building sustainable ecosystems that transcend industry boundaries and enhance resilience.

SustainabilityVol. 17(11)
Northeast Electric Power University (CN), Beijing University of Chemical Technology (CN), Beihang University (CN)
National Natural Science Foundation of China
Industry, innovation and infrastructure
Openalex Percentile: Top 82%
Digital Platforms and Economics
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