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Uncovering the Role of External APIs in Driving Dynamic Ecosystem Growth

  • Um, Sungyong (School of Business Administration, Hanyang University(ERICA)) ;
  • Kang, Martin (Information Systems and Business Analytics, Loyola Marymount University) ;
  • Son, Insoo (Department of Global Business Administration, Sangmyung University)
  • Received : 2024.05.16
  • Accepted : 2024.06.23
  • Published : 2024.06.30

Abstract

Purpose This study highlights the crucial role of external APIs in driving dynamic evolution within a digital ecosystem. Drawing on the concept of evolutionary network biology perspective, this study hypothesizes that APIs' (non)network properties can significantly impact a digital ecosystem's product variety. Design/methodology/approach This study analyzes plug-in source code data from WordPress.org between January 2004 and December 2014, using survival analysis to test this hypothesis. Findings The empirical results demonstrate that external APIs have a more significant impact on promoting ecosystem evolution over time than those offered by a focal platform system. This research enhances our understanding of ecosystem dynamics and emphasizes the critical role of the generative nature of APIs in fostering ecosystem growth.

Keywords

Acknowledgement

This work was supported by the research fund of Hanyang University (HY-2023-3072).

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