Exploiting and Defending Open Digital Platforms with Boundary Resources: Android's Five Platform Forks

Digital platforms can be opened in two ways to promote innovation and value generation. A platform owner can open access for third-party participants by establishing boundary resources, such as APIs and an app store, to allow complements to be developed and shared for the platform. Furthermore, to foster cooperation with the complementors, the platform owner can use an open-source license boundary resource to open and share the platform’s core resources. However, openness that is too wide renders the platform and its shared resources vulnerable to strategic exploitation. To our knowledge, platform strategies that promote such negative outcomes have remained unexplored in past research. We identify and analyze a prominent form of strategic exploitation called platform forking in which a hostile firm, i.e., a forker, bypasses the host’s controlling boundary resources and exploits the platform’s shared resources, core and complements, to create a competing platform business. We investigate platform forking o...