Decision-making on R&D strategies of Big Data as a Service in a platform innovation ecosystem

This paper aims to identify the determinants and their dynamic impact on R&D strategic decisions regarding Big Data as a Service (BDaaS) within a platform innovation ecosystem (PIE). An evolutionary game model and simulation system comprising a platform-based firm and a complementor were developed to explore the causal relationships between key factors and BDaaS R&D strategies. The results indicate that changes in digital capability, absorptive capacity, incremental pay-offs, and penalties affect both actors’ R&D strategic choices between independent and collaborative approaches. Furthermore, a contractual agreement serves as a formal governance tool, and capability alignment is a key driver of successful joint BDaaS R&D. An appropriate balance between incremental pay-offs and penalties can help platform-based firms and complementors gain a competitive advantage and avoid opportunism. The study findings highlight the importance of understanding mutual capabilities and establishing a formal collaborative contract between a platform-based firm and a complementor before formulating R&D strategic decisions regarding BDaaS. This provides actionable insights for platform companies seeking to unlock data value and effectively govern collaboration.