Coopetitive Service Innovation in Mobile Payment Ecosystems

Aalto University, P.O. Box 11000, FI-00076 Aalto www.aalto. fi Author Junying Zhong Name of the doctoral dissertation Coopetitive Service Innovation in Mobile Payment Ecosystems Publisher School of Science Unit Department of Computer Science Series Aalto University publication series DOCTORAL DISSERTATIONS 129/2015 Field of research Computer Science and Engineering Manuscript submitted 12 June 2015 Date of the defence 16 October 2015 Permission to publish granted (date) 25 August 2015 Language English Monograph Article dissertation (summary + original articles) Abstract Mobile payments are a new way to pay in the digital era. The emerging mobile payment platforms and services enable viable businesses through exchanges of value between consumers and collaborating actors in a real-time and context-specific way. However, business interactions in mobile payment markets are reflected in a highly dynamic market structure that requires coopetition (simultaneous competition and collaboration) between the participants in the markets. This dissertation studies how mobile payment solutions are innovated in business networks. The focus is on the coopetitive service innovation in mobile payment ecosystems. The first investigation is a comparison of mobile payment service innovation in the Finnish and Chinese markets. This investigation shows that the interindustry cooperation happens in both markets to facilitate the effective realization of mobile payment solutions. The findings show differences in the providers’ strategic positions. An empirical study on consumer adoption emphasizes the importance of interfirm collaboration in the mobile payment supply chain. The following case studies address Bestpay, Alipay, UnionPay, Elisa Wallet, and Apple Pay. These studies result in three theoretical models for managing firms’ coopetition in a digital business ecosystem. The RISE model (Resources — Inter-/Selforganizational innovation — Ecosystem) can be used to identify the win-win relationships in interfirm co-innovation. The DISCO model (Dynamics of Innovation Strategy in Coopetitive Environment) helps a company to adjust its strategic positioning in a coopetitive environment. The COIN model (Coopetitive Innovation) introduces the Consumer Matrix, the Business Matrix, and the Resource Matrix. These help companies to recognize their resource advantages: superior vs. inferior, and heterogeneous vs. homogeneous. In addition to the theoretical contribution, the models help firms to identify and define their business relations in service innovation ecosystems. Overall, this dissertation contributes to the understanding of mobile payment service innovations in digital ecosystems for managing coopetition.Mobile payments are a new way to pay in the digital era. The emerging mobile payment platforms and services enable viable businesses through exchanges of value between consumers and collaborating actors in a real-time and context-specific way. However, business interactions in mobile payment markets are reflected in a highly dynamic market structure that requires coopetition (simultaneous competition and collaboration) between the participants in the markets. This dissertation studies how mobile payment solutions are innovated in business networks. The focus is on the coopetitive service innovation in mobile payment ecosystems. The first investigation is a comparison of mobile payment service innovation in the Finnish and Chinese markets. This investigation shows that the interindustry cooperation happens in both markets to facilitate the effective realization of mobile payment solutions. The findings show differences in the providers’ strategic positions. An empirical study on consumer adoption emphasizes the importance of interfirm collaboration in the mobile payment supply chain. The following case studies address Bestpay, Alipay, UnionPay, Elisa Wallet, and Apple Pay. These studies result in three theoretical models for managing firms’ coopetition in a digital business ecosystem. The RISE model (Resources — Inter-/Selforganizational innovation — Ecosystem) can be used to identify the win-win relationships in interfirm co-innovation. The DISCO model (Dynamics of Innovation Strategy in Coopetitive Environment) helps a company to adjust its strategic positioning in a coopetitive environment. The COIN model (Coopetitive Innovation) introduces the Consumer Matrix, the Business Matrix, and the Resource Matrix. These help companies to recognize their resource advantages: superior vs. inferior, and heterogeneous vs. homogeneous. In addition to the theoretical contribution, the models help firms to identify and define their business relations in service innovation ecosystems. Overall, this dissertation contributes to the understanding of mobile payment service innovations in digital ecosystems for managing coopetition.