Digital platforms have become central orchestrators of value creation in contemporary markets, yet their governance remains a fragmented but critical domain of inquiry. This narrative literature review synthesizes peer-reviewed studies published to examine how institutional structures, strategic coordination mechanisms, and ecosystem owner dynamics shape platform-based competition. Drawing from leading journals in management, information systems, and innovation, the analysis identifies five core research streams: governance architectures, coordination mechanisms, platform leadership and orchestration, power asymmetries, and regulatory-institutional challenges. Key findings reveal persistent tensions between openness for innovation and control for value capture, evolving governance practices that balance cocreation with cost management, and growing power imbalances between platform owners and complementors. The analysis culminates in a conceptual synthesis model that illustrates the interconnected flows of coordination, control, and value within ecosystems. This review demonstrates that effective governance is not merely technical but fundamentally institutional, influencing complementor participation, ecosystem stability, and market outcomes. By integrating disparate perspectives, this work highlights unresolved tensions in multi-sided markets and proposes directions for future scholarship on global platform regulation and adaptive governance in volatile digital environments. The synthesis offers practical guidance for managers and policymakers navigating the complexities of platform-dominated economies.
Digital platforms have become the cornerstone of contemporary business models, orchestrating expansive ecosystems that drive value creation across multi-sided markets. Platform owners, however, confront a persistent strategic paradox: they must promote openness to fuel innovation, complementor participation, and ecosystem growth while exercising sufficient control to safeguard standards, capture value, and mitigate risks. This managerial and strategic perspective article examines the governance tensions inherent in expanding digital platform ecosystems. Synthesizing insights, it analyses governance mechanisms, openness–control trade-offs, ecosystem coordination challenges, platform owner–complementor dynamics, and the need for dynamic adjustment. Excessive openness risks fragmentation and value leakage, whereas excessive control can suppress innovation and trigger stagnation. A governance balancing framework is introduced that integrates openness configurations, control mechanisms, incentive alignment, ecosystem coordination, adaptive processes, and risk management layers. Practical guidance is offered on how platform owners can operationalize this balance as ecosystems scale, thereby sustaining competitiveness and long-term viability. The article underscores that effective platform governance is not a static choice but a continuous strategic discipline essential for thriving in digital markets.
Institute for Management, Business, and Accounting Studies