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<article xmlns:xlink="http://www.w3.org/1999/xlink">
  <front>
    <journal-meta />
    <article-meta>
      <title-group>
        <article-title>Business as Usual? On the Nature of Relationships in Enterprise Software Platform Ecosystems</article-title>
      </title-group>
      <contrib-group>
        <contrib contrib-type="author">
          <string-name>Sabine Molenaar</string-name>
          <email>s.molenaar@uu.nl</email>
          <xref ref-type="aff" rid="aff0">0</xref>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Martijn van Vliet</string-name>
          <email>m.vanvliet@uu.nl</email>
          <xref ref-type="aff" rid="aff0">0</xref>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Luc Beelen</string-name>
          <email>l.g.n.m.beelen@students.uu.nl</email>
          <xref ref-type="aff" rid="aff0">0</xref>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Slinger Jansen</string-name>
          <email>slinger.jansen@uu.nl</email>
          <xref ref-type="aff" rid="aff0">0</xref>
        </contrib>
        <aff id="aff0">
          <label>0</label>
          <institution>Department of Information and Computing Sciences, Utrecht University</institution>
          ,
          <addr-line>Utrecht</addr-line>
          ,
          <country country="NL">The Netherlands</country>
        </aff>
      </contrib-group>
      <pub-date>
        <year>2018</year>
      </pub-date>
      <fpage>40</fpage>
      <lpage>56</lpage>
      <abstract>
        <p>To obtain measurable bene t from an ecosystem, partners need to overcome the challenges they face when they join. This research aims to provide insight into whether partners are in uenced by the keystone through power forms and how the partners perceive these in uences. Subsequently, this research identi es possible perceived software ecosystem bene ts and disadvantages that these partners experience after joining. Semi-structured interviews were conducted with both a keystone company and multiple partners within a single ecosystem. The most frequently observed power forms are reward and legitimate power. Finally, various SECO bene ts and disadvantages have been identi ed for each partner. Thus, this research contributes to an improved understanding of partner-keystone dynamics within a single software ecosystem and provides insights bene cial to the industry.</p>
      </abstract>
      <kwd-group>
        <kwd>software ecosystems</kwd>
        <kwd>case study</kwd>
        <kwd>power forms</kwd>
        <kwd>SECO benets</kwd>
        <kwd>disadvantages</kwd>
        <kwd>relationships</kwd>
      </kwd-group>
    </article-meta>
  </front>
  <body>
    <sec id="sec-1">
      <title>Introduction</title>
      <p>
        In this day and age, software developers and vendors have to consider their
strategic role in a software ecosystem (SECO) to survive [
        <xref ref-type="bibr" rid="ref15">15</xref>
        ]. Organizations
operating while being part of a larger SECO reap multiple bene ts that they would
otherwise miss out on [
        <xref ref-type="bibr" rid="ref14 ref2">2, 14</xref>
        ]. While literature regarding SECOs and their
benets are already established in current literature, explicit dynamics between the
keystone and their partners are underexposed. Jansen, Brinkkemper, and
Finkelstein call for case studies to be conducted in order to analyze the characteristics
of individual SECOs and their e ects on software vendors [
        <xref ref-type="bibr" rid="ref11">11</xref>
        ]. Moreover, Van
Angeren et al. recognize the need for insight into a participant's perspective in
a SECO. Questions such as what risks participants face and what bene ts and
drawbacks they experience within an associate model remain unanswered as of
yet [
        <xref ref-type="bibr" rid="ref1">1</xref>
        ]. These dynamics between the keystone and its partners, and the
bene ts and drawbacks that a SECO could bring, might be more implicative for
young, small, organizations. These are assumed to be more subject to change, as
they are expected to rapidly adapt and evolve to become successfully established
organizations.
      </p>
      <p>
        By conducting an exploratory case study, this research provides insight into
a single SECO regarding the dynamics between the keystone and its partners,
mainly from a partner perspective. An advantage of using a real-world SECO as
the object of study, which may not only result in industry ndings as opposed
to solely scienti c results, is that it can help improve the industry [
        <xref ref-type="bibr" rid="ref18">18</xref>
        ]. These
dynamics are analyzed by looking at multiple aspects of the relationship between
the keystone and its partners. These aspects are focused on potential challenges
that may arise when an organization wants to join a SECO, such as governance,
as di erent areas of governance entail the best strategies for survival for a rm
[
        <xref ref-type="bibr" rid="ref22">22</xref>
        ]. Subsequently, power forms are included to establish the origin of in uences
and to further illustrate the relationships [
        <xref ref-type="bibr" rid="ref7">7</xref>
        ].
      </p>
      <p>By taking a closer look at the dynamics between the keystone and partners on
the aforementioned aspects, the speci c characteristics of the particular SECO
are identi ed. The identi cation of these characteristics sheds light on possible
SECO bene ts or disadvantages that could be experienced. Subsequently, it
grants a more complete image of the dynamics within a SECO. This contributes
to the process of creating a foundation regarding the optimization of the process
for future candidates that apply to join a SECO. The following main research
question was formulated:</p>
      <p>How are organizations in uenced by the keystone when they join their SECO?
Subsequently, the following three sub questions have been formulated:
1. Does the keystone use power forms to in uence its partners?
2. Do partners bene t from being part of the SECO?
3. Do partners experience any disadvantages from being part of the SECO?
The data required to answer these research questions was gathered through the
means of semi-structured interviews.</p>
      <p>We continue our work with a description of the literature on SECOs and
power forms. Section 3 describes the research method, the data collection
procedure and illustrates the SECO that was selected for this research. This section
also includes our data analysis together with the organizations that participated
in this research. Section 4 analyzes the results based on the research questions.
The paper ends with a discussion including future research directions and a
conclusion.
2</p>
    </sec>
    <sec id="sec-2">
      <title>Literature Study</title>
      <p>
        The literature study by Manikas was used as a starting point [
        <xref ref-type="bibr" rid="ref17">17</xref>
        ]. Further
literature was added through snowballing, using both forward and backward
searching.
2.1
      </p>
      <sec id="sec-2-1">
        <title>Software Ecosystems</title>
        <p>
          As stated by Jansen, a SECO is "a set of actors functioning as a unit and
interacting with a shared market for software and services, together with the
relationships among them" [
          <xref ref-type="bibr" rid="ref15">15</xref>
          ]. Partners in a SECO could be any party, on
the condition that they contribute to the SECO in any meaningful and in a
software related way [
          <xref ref-type="bibr" rid="ref13">13</xref>
          ]. The role of a keystone will be de ned according to
the description provided by Jansen, Brinkkemper and Finkelstein: "providing
a standard or platform technology that provides a fundament for (part of ) the
ecosystem" [
          <xref ref-type="bibr" rid="ref11">11</xref>
          ]. Additionally, a speci c type of keystone player was identi ed,
namely the technology provider [
          <xref ref-type="bibr" rid="ref12">12</xref>
          ]. This type of keystone deploys a
partnership model and desirable partners include partners that add value to the SECO,
help co-innovate, help expand the SECO and promote the SECO to the "outside
world" [
          <xref ref-type="bibr" rid="ref14">14</xref>
          ]. Geringer and Michael state that the culture of the partners'
organization, experience, organization structure and nancial position, among other
factors, are taken into account by the keystone [
          <xref ref-type="bibr" rid="ref8">8</xref>
          ]. In addition, other selection
criteria that could be considered include: management capabilities, established
customer base, in-house knowledge (including employee skill set) and product
quality [
          <xref ref-type="bibr" rid="ref23 ref6">6, 23</xref>
          ].
        </p>
        <p>
          When the selection criteria are met, a SECO can yield bene ts for partners
in the SECO. For example, the involvement of partners allows organizations
to focus on one speci c aspect of the market, while simultaneously delegating
other supportive services to smaller partners, which can result in an increase of
sales for individual partners [
          <xref ref-type="bibr" rid="ref3">3</xref>
          ]. Rickmann, Wenzel and Fischbach also mention
this, stating that niche players often join a SECO to gain access to customers
[
          <xref ref-type="bibr" rid="ref19">19</xref>
          ]. Also, partaking in a SECO allows partners to extract value from each
other, which would mean higher revenue for individual partners [
          <xref ref-type="bibr" rid="ref14">14</xref>
          ]. Barbosa
and Alves state that SECOs generally decrease costs for the participants, that
they support architectural decision making, allow the sharing of knowledge and
that they stimulate the communication of requirements between participants [
          <xref ref-type="bibr" rid="ref2">2</xref>
          ].
These factors could also be seen as bene ts from participating in a SECO and
gives incentive for an organization to join an existing SECO. In order for new
participating organizations to bene t optimally and thrive in a SECO, it is
possible that they have to adapt to the overall climate of the entire SECO upon
entry.
2.2
        </p>
      </sec>
      <sec id="sec-2-2">
        <title>Power Forms</title>
        <p>
          To provide more insight into partner-keystone dynamics, power forms were used
to observe how they cooperate and behave in the SECO and how the keystone
manages its partners [
          <xref ref-type="bibr" rid="ref21">21</xref>
          ]. French and Raven describe ve forms of power in a
relationship: coercive, expert, legitimate, referent and reward [
          <xref ref-type="bibr" rid="ref7">7</xref>
          ]. While French
and Raven de ned these bases of power in relation to a person and a social
agent, Leonidou et al. [
          <xref ref-type="bibr" rid="ref16">16</xref>
          ] have adapted these to be suitable to buyer/seller
relationships and de ne an additional form of power. In the case of the latter,
these power forms are described as follows:
{ Coercive: Threats by one rm to punish the other if it fails to cooperate
and comply with its requests;
{ Expert: The specialized and unique expertise and/or knowledge possessed
by one, which is needed by the other party;
{ Legitimate: The belief by one party that the other has a legitimate right
to a ect his/her behavior;
{ Referent: The identi cation of one party with another, which makes one
party comply with the other party's requests;
{ Reward: The belief by one rm that another rm has the ability to mediate
rewards and that it will provide these rewards if the rm complies;
{ Information: The belief of one party that another possesses critical
information, which is not available to the former.
        </p>
        <p>
          Whenever power is exercised by one organization this can lead to compliant
behavior by others [
          <xref ref-type="bibr" rid="ref16">16</xref>
          ]. While the exercised power as stated by Leonidou et al.
is a work in progress and is tailored speci cally to buyer/seller relationships, it
is applied to keystones and partners in SECOs in this case. It is important to
note, however, that such power relationships and dependencies are versatile, as
they can depend on circumstance [
          <xref ref-type="bibr" rid="ref10">10</xref>
          ]. Throughout this research the power forms
have been used to de ne the relationships and potential dependencies between
the keystone and its partners, predominantly from a partner perspective.
3
        </p>
      </sec>
    </sec>
    <sec id="sec-3">
      <title>Research Method</title>
      <p>
        The grounded theory research method was applied, in which the data
determine the theory and therefore mitigate the risk of introducing bias during the
interpretation of the results. In addition, this research method allows for a wide
range of di erent data to be used, since no particular e ort was made to prove
or disprove a speci c hypothesis or expectation. So, the method permitted a
degree of sensitivity, which allowed for the gathering of general information as well
as picking up on details [
        <xref ref-type="bibr" rid="ref20">20</xref>
        ]. Ultimately, the grounded theory research method
allows this research to focus on understanding the phenomena covered by the
research questions, rather than explaining them [
        <xref ref-type="bibr" rid="ref4">4</xref>
        ]. In this research, the method
has been applied to a case study. In the context of this research this meant
that, for example, the e ect the SECO has had on the partners can be observed.
The data that have been gathered were used to identify the advantages and
disadvantages of joining a SECO. Also, power forms utilized by the keystone
within the SECO were identi ed. While the existence of possible power forms
was known to the researchers before conducting the interviews, the e ect on the
grounded theory approach was mitigated by not referring to any of these power
forms or their characteristics directly during the interviews. While this approach
is slightly in contrast with the principles of the grounded theory method, it was
required to determine the initial scope of this research. To support this approach,
no hypotheses were formulated beforehand.
3.1
      </p>
      <sec id="sec-3-1">
        <title>Data Collection</title>
        <p>The data for this research was collected through semi-structured interviews. The
questions were kept as open as possible to enable the interviewee to speak freely
and add extra information when relevant. Interviews were conducted with four
partners and the keystone. In case of the partners, the CEOs of the companies
were interviewed. The representative of the keystone was the chief of
ecosystems. The average duration of the interviews was one hour and took place at the
respective organizations' headquarters. All participants received the same
questions according to the interview protocol, although follow-up questions varied
based on the context and the interview itself. For each interview, at least two of
the researchers were present. During the partner interviews the following types
of questions were asked:
{ General questions (information about the organization), such as: how long
has your company already been active and what is, to your knowledge, the
role of your company in the SECO?
{ Questions regarding the partnership with the keystone, such as the
motivation to join.
{ Advantages and disadvantages of being part of the SECO.
{ Challenges and innovation.</p>
        <p>{ Market perspective and knowledge sharing.</p>
        <p>Regarding the interview with the keystone, similar questions have been asked.
3.2</p>
      </sec>
      <sec id="sec-3-2">
        <title>Data Analysis</title>
        <p>
          The interviews that have been conducted have been transcribed and entered into
NVIVO. Using this qualitative analysis program, potential uses of power were
observed. Secondly, SECO bene ts and disadvantages mentioned by partners
were identi ed and compared. Figure 1 shows the coding nodes used in NVIVO.
Some of these nodes are supported by existing literature (as described above),
while others are more general. To remain open to other possibilities (outside of
the literature) the "other" nodes were used to capture additional information.
In case of the "sales increase" node, an increase in customers or wider reach
are both included. Since no speci c disadvantages were found in the literature,
no examples of disadvantages were used as coding nodes. See gure 1 for an
overview of the nodes.
The SECO that was investigated was that of Exact Online (simply referred to as
Exact from now on). Exact has been selected, as it is the keystone of one of the
biggest SECOs in the Netherlands. Exact is a Dutch software application
platform provider that o ers cloud business software to organizations. During the
interview with a representative of Exact, the following statistics were presented
(as of January 2018): they serve over 375,000 small and medium-sized
enterprises worldwide and handle 2,4 billion nancial transactions per month. In the
Netherlands, they have 200 partners and 90,000 customers are linked. This size
is important, as a product becomes more attractive when more customers use it
and more suppliers provide complementary products and/or services [
          <xref ref-type="bibr" rid="ref9">9</xref>
          ]. Since
the case study focuses on depth, a scope has been de ned using characteristics
of the SECO [
          <xref ref-type="bibr" rid="ref17">17</xref>
          ]. Firstly, the SECO boundary can be de ned by the
organization, more speci cally, Exact Online's app center [
          <xref ref-type="bibr" rid="ref15">15</xref>
          ]. Secondly, Exact currently
deploys a membership and partnership model, since some partners are required
to pay a fee in order to be part of the SECO, while others have entered free
of charge. Finally, the accessibility of the SECO of Exact can be described as
screened, while partners are free to contribute software (such as online plug-ins),
contributions need to be approved by the keystone [
          <xref ref-type="bibr" rid="ref14">14</xref>
          ].
        </p>
        <p>Candidate participants that optimally suited this research adhered to the
following prerequisites: participants recently joined the Exact SECO, so that
the joining of the SECO was fresh in their mind and they could provide an
illustration of what joining the SECO is like now, as opposed to some years
ago. Secondly, they themselves, do not ful ll the role of keystone in a di erent
SECO (as of yet). Furthermore, only small enterprises in terms of number of
employees have been included. Finally, the partners in the SECO have been
selected based on recommendations by Exact, to ensure that they provide an
accurate representation of the SECO. Organizations of similar size, in case of
the partners, have been selected, to ensure they have matching perspectives
on joining a SECO and allowing for comparison of their experiences. The four
partners that have been selected are part of a larger set of partners that are
representatives of the criteria mentioned previously. Table 1 provides an overview
of general information of the organizations that participated in this research.
For one participant the information shown in table 1 and the quotes used in the
results section were anonymized.</p>
        <p>Organization</p>
        <p>Exact</p>
        <p>TriFact365</p>
        <p>Invantive
vPlan</p>
        <p>
          Partner Z
Year founded 1984 2011 1992 2016 2013
Product/service Accountancy Invoice processing Accountancy Planning Data Analysis
Number of employees 1400 6 10 7 5
Year of entrance 2012 (founded) 2013 2015 2017 2014
SECO role Keystone Niche Bridge Niche Niche
The ndings presented in the upcoming section contribute towards the building
of a theory that answers the main research question [
          <xref ref-type="bibr" rid="ref5">5</xref>
          ]. Direct quotes from
the interviews were used to support all ndings. These quotes, provided by the
representatives of each organization, have been interpreted as the voice of their
entire organization. Quotes have been translated from Dutch to English. An
overview of the ndings is presented in table 2 at the end of this section.
4.1
        </p>
      </sec>
      <sec id="sec-3-3">
        <title>Identi ed Power Forms</title>
        <p>
          The most frequently observed power forms were legitimate and reward power.
However, in the case of the former, the keystone met resistance even though
partners felt that the keystone had a right to in uence. While the partners
mostly complied, the con icts that arose negatively in uenced the relationship
between partner and keystone, for example a decrease in satisfaction on the
partner's side as discussed by Leonidou et al. [
          <xref ref-type="bibr" rid="ref16">16</xref>
          ]. One change that the partners
mentioned is that the keystone started to charge fees for being part of the SECO,
while being given insu cient notice beforehand. According to the keystone, the
reasoning behind the fees was that they incur costs in order to keep both the
SECO and, speci cally, the app center running. TriFact365 con rms this and
states: "The motivation is that they make costs for the app center and that they
want compensation in return to be able to continue to innovate." Based on this,
it seems to be a use of legitimate power. However, TriFact365 then continues
saying that "They indicated this could be discussed, we talked a little, but in the
end it became clear that negotiation was not possible ". Which can be interpreted
as coercive power, although no threats or consequences were expressed, whilst
usually punishments are stated [
          <xref ref-type="bibr" rid="ref16">16</xref>
          ]. vPlan, however, stated that Exact was more
open for negotiations: "...we were able to make a deal in the beginning, they
actually were quite approachable especially compared to others." Most partners
deemed the current pricing dynamic to be ne, as long as they asked a fair price.
Invantive, however, exerted its own coercive power in return by threatening to
leave the SECO, clearly indicating a punishment for non-compliance [
          <xref ref-type="bibr" rid="ref16">16</xref>
          ]: "At a
certain point in time we said we will put it on hold, for half a year it was put on
hold. We do not do [keystone's product] anymore, done." So, while these fees are
acceptable at this point in time, an increase would likely not be tolerated or at
least be deemed controversial by smaller partners. While the actual prices asked
by Exact for each partner remains unclear and partner speci c, the di erent
perspectives and the highly varying reactions highlight that this is at least a
sensitive subject. In the near future, Exact is planning on charging partners
based on their API calls. This could lead to various consequences for the partners,
the most important being additional costs, which can lead to problems. If Exact
does not communicate this properly and does not notify the partners of this
change ahead of time, reactions such as the one of Invantive could be expected.
Moreover, this could a ect di erent partners in di erent ways. While some rely
on a few API calls to run their business, others need a plethora of calls to
keep their product running and to meet customer demands. Another example
of the use of legitimate power was that Exact asked vPlan to lower their price,
otherwise the two products would cost nearly the same amount, which was not
considered marketable. Notably, vPlan complied because they expected this to
yield more pro ts than costs. Due to this increased pro t, the price change was
not seen as a disadvantage.
        </p>
        <p>
          Furthermore, Exact has a vision for the future in respect to reward structures
for organizations regarding the sharing of data, as these organizations help to
improve the data. TriFact365 coined the idea that Exact should include
successful partners in their proposition and that they, in return, are willing to share
part of their revenue. During hackathons Exact also puts organizations in the
spotlight, if they provided useful contributions during the event. Likewise,
Exact also awards prizes via the app center, such as the "app of the month" prize,
which vPlan received. According to Leonidou et al., reward power can be used
to improve collaboration and productivity [
          <xref ref-type="bibr" rid="ref16">16</xref>
          ]. The aforementioned hackathons
can be seen as an example of such use. Finally, TriFact365 explained that Exact
imposes requirements, such as security procedures, and that they screen APIs
before allowing them in the app center, which can be seen as an example of
expert power. One partner also seems to exert expert power, that is to say that
Partner Z aids Exact in using their data well. All in all, Exact does not seem to
apply all of the aforementioned power forms. Instead, the participants mentioned
reciprocity as a more prevalent factor, they are willing to share their knowledge
or o er a helping hand if they can expect the same in return. TriFact365 calls
it "give and take" and stated that both parties ask how the other is doing and
provide insight on a noncommittal basis. Invantive con rmed this by saying that
"We mainly require market information and Exact requires technical
information, that works well ". Additionally, vPlan also stated that their dynamic is a
two way street: "...just because it comes from both sides. Exact needs us because
we provide an essential part."
        </p>
        <p>
          When looking at the aforementioned power forms, especially coercive and
reward, and their in uence on the keystone-partner relationship, the following
can be deducted: when the keystone applies its coercive power, this could
presumably lead to a relationship based on "fear", as described by Leonidou et
al. [
          <xref ref-type="bibr" rid="ref16">16</xref>
          ]. When this is the case, this can spread to the other partners and
candidate partners, who might refrain from joining the SECO, which in turn will
have a negative in uence on the growth and well-being of the SECO. On the
other hand, reward power, the actualization and not just the promise, has the
potential to increase the attraction of partners to the keystone, as this may
increase the satisfaction of partners [
          <xref ref-type="bibr" rid="ref16">16</xref>
          ]. This will bene t their relationship and
have a positive in uence on the SECO, because the partner is likely to share
with their partners or other partners that they have a positive experience. This,
in turn, can reach candidate partners that can be persuaded to join the SECO
when hearing about the positive relationship between partner and keystone, as
was also identi ed by Jansen, Cusumano and Brinkkemper [
          <xref ref-type="bibr" rid="ref14">14</xref>
          ].
4.2
        </p>
      </sec>
      <sec id="sec-3-4">
        <title>Perceived Bene ts of the SECO</title>
        <p>
          The three main advantages of being part of a SECO that were identi ed
beforehand in the literature study were also encountered in the case study. One
of which was an increase in sales as mentioned by Ceccagnoli et al. [
          <xref ref-type="bibr" rid="ref3">3</xref>
          ], however,
not all participants mentioned they had experienced an actual increase.
Invantive shared that some customers they serve via the keystone actually cost them
money when looking at pro t per customer: "We also have contracts that cause a
loss." On the other hand, all participants con rmed that, thanks to the SECO,
they have a wider reach and have had the possibility to gain new customers,
as was stated by Rickmann, Wenzel and Fischbach [
          <xref ref-type="bibr" rid="ref19">19</xref>
          ]. Even when partners
did not personally encounter the e ects of this SECO bene t (yet), they still
acknowledged the potential as an important SECO bene t of being a partner.
        </p>
        <p>
          Secondly, all participants mentioned that they share knowledge with the
keystone and that they receive valuable and useful information in return, which
con rms the ndings of Barbosa and Alves [
          <xref ref-type="bibr" rid="ref2">2</xref>
          ]. The technology-focused
organization Invantive especially appreciated the marketing knowledge the keystone
possesses. When asked whether Exact is a useful source of knowledge their
answer was "it is for knowledge of the market." The keystone itself also mentioned
that they are aware of this SECO bene t for their partners. Nevertheless, when
it comes to sharing knowledge such as source code the partners remain cautious.
Invantive stated that Exact "can look at it if they want to, but cannot take it
with them." In the case of TriFact365 the code was not at all available to Exact.
However, Exact stated that they do not expect the same degree of openness from
their partners. In the continuation of knowledge sharing, every participant said
that they actively collaborate with the keystone in terms of innovation and that
hackathons are organized frequently. This co-innovation is in line with the
observations provided by Jansen, Cusumano and Brinkkemper [
          <xref ref-type="bibr" rid="ref14">14</xref>
          ]. The topics of
innovations mainly include integrated services, new technologies and the renewal
of APIs.
        </p>
        <p>In addition to the SECO bene ts that were expected due to ndings in the
literature study, two additional advantages could be identi ed during this research.
Firstly, the participants mentioned that their credibility improved thanks to
being part of the SECO. Customers see the keystone as a trustworthy organization
and, by association, the partner organization as well. This was acknowledged by
vPlan: "What you do have, is the logo of Exact on your website which
apparently means something, as it o ers something recognizable for organizations."
For smaller, relatively young organizations it felt as a big advantage to be able
to express the fact that they were backed by a bigger organization that is known
to public. In other words, the reputation of Exact resulted in a higher level of
trustworthiness that re ects on the associated partners. Partners mentioned that
this trustworthiness comes from the fact that Exact acts as a guardian regarding
product quality, which guarantees a certain degree of quality of members in the
SECO. This was speci cally acknowledged by TriFact365: "...they all have to
score a 9 or a 10 in order to collaborate, otherwise you have to say goodbye to
them (...) quality is the most important to Exact..." Subsequently, partners
mentioned that being part of the SECO can lead to increased visibility, for example
due to the partner organization being named on the website of the keystone. In
other words, partners acknowledged that they bene t from the marketing
channel of the keystone, which by de nition is larger than the individual marketing
channel of a small partner. Respectively, in certain cases partners get an even
bigger spotlight when Exact sees a certain potential in their product. vPlan was
a great example of this phenomenon as they stated that "As app of the month,
you will get presented on the website of the app center. Potential clients see this
and are easily able to make a deal at the same time with us and Exact. For us
this results in a way bigger reach."
4.3</p>
      </sec>
      <sec id="sec-3-5">
        <title>Perceived Disadvantages of the SECO</title>
        <p>In addition to the identi ed SECO bene ts, possible disadvantages also became
apparent during this research. These disadvantages do not necessarily a ect the
individual organization speci cally, but can also include aspects which the
partners think should be improved. An example of such an aspect was the preferred
partnerships as mentioned by TriFact365: "I do not think the ecosystem is
completely transparent." They think the app center should be open and that "they
should not have contracts with third parties that could cause con icts."
Essentially, a level playing eld should be created. According to them, and Exact,
they have a tendency to favor partners that have been a part of the SECO for
a long time or even from the beginning. This so-called "playing favorites" is not
appreciated by "regular" partners but, surely, those favorites enjoy this special
treatment. In this context, the preferred partners' products are sold alongside
Exact Online and, unlike the other partners, they are not required to pay a
fee to be included in the app center. Also, they are more often pushed and
recommended to customers than other products. Additionally, the previously
mentioned spotlight of "app of the month" could also be observed as drawing
away the focus from other partners. These two factors combined could
potentially result in drawing attention away from other, new partners that could be
of importance for innovation, growth or general longevity of the SECO.</p>
        <p>
          Secondly, joining the SECO compelled the new partners to spend resources,
such as time, e ort and money, into linking and developing their product. After
obtaining partner status, these costs also included continued management and
support. This is not in line with the general decrease in costs Barbosa and Alves
identi ed [
          <xref ref-type="bibr" rid="ref2">2</xref>
          ]. However, this also included the initial cost of joining. In addition,
partners mentioned that partner managers can be of in uence. Invantive said
that their situation improved after they received a di erent partner manager:
"whom at least had more experience with complex cases." The same
organization also stated that they think Exact has too few partners abroad. They were
also required to accept medium to small organizations as customers, which they
found hard to get used to saying that this period "was a di cult time."
Moreover, partners were concerned with what decisions Exact might make or not
make, (these di ered from partner to partner) and how these changes would
impact them. These changes also included the transparency of the SECO. This
mainly manifested itself in the fact that partners mentioned that they receive
short notice, or none at all, when changes to policies (among others) are made.
A speci c example of this was Exact's decision to start charging fees for being
included in the app center. For smaller organizations, the dependency on
Exact was acknowledged to be either a disadvantage, or at the very least a risk.
Organizations that have relatively little sales for other sources, such as
Partner Z have little alternatives: "...there is not really an alternative. If I want to
approach Exact customers (on my own), I have to pull my app from the app
center. Theoretically, I could do that, which would mean no dependency, but no
business as well." Invantive also stated that if Exact goes bankrupt, is obtained
by a third party or changes their terms and conditions "they will have a problem
as well." Thus, organizations that do not have enough customers by themselves
or are not part of another SECO, share the fate of Exact and its SECO. In table
2, the main ndings of this research are presented, they are relevant for both the
keystone, partners as well as potential partners who want to join a SECO.
        </p>
      </sec>
    </sec>
    <sec id="sec-4">
      <title>Discussion</title>
      <p>
        Due to the exploratory nature of this research, it can be used to identify research
directions and provide better insight into partner and keystone dynamics.
However, since the research consisted of a case study, it is di cult to generalize the
results and more research into this SECO and others is desired. On the other
hand, this research and its methods can easily be applied or adapted to look into
other SECOs. In addition, since the characteristics of the SECO and its boundary
were identi ed, this research can be conducted using similar scopes to con rm
the ndings [
        <xref ref-type="bibr" rid="ref17">17</xref>
        ]. Alternatively, it can be used to analyze the partner-keystone
dynamics of this SECO, using di erent partners. Therefore, the research is quite
scalable and can be used in other contexts. Finally, one of the strengths of this
research is its use of a real-world SECO and, with that, useful insight for the
industry [
        <xref ref-type="bibr" rid="ref18">18</xref>
        ].
      </p>
      <p>The research was also limited by the fact that only a small subset of Exact's
partners participated, while more partners would have been preferable. This
was due to the limitations introduced by a narrow time window for conducting
the research. More qualitative research should be performed to be able to truly
con rm the ndings mentioned in this research. Another limitation is the fact
that all the partners that participated were suggested by the keystone of the
SECO. This could have in uenced the results, because the selected partners may
have been more positive than without the participation of the keystone, although
not all participants were equally enthusiastic about the SECO. However, this can
also been seen as a advantage, because the partners have been selected in such
a way that they properly represent the SECO in its entirety. Additionally, since
the keystone requested them to participate they were willing to invest time and
e ort into the research.</p>
      <p>As already mentioned this research can be seen as an exploratory case study.
Based on the aforementioned ndings we can extract the following hypotheses
that can serve as a basis for our and other future research:
1. A non-equal playing eld can result in potential partners not wanting to join
the SECO and losing partners that are of importance.
2. Applying reward power by the keystone will increase the attractiveness of
the SECO, resulting in growth and new partners.
3. Applying coercive power by the keystone will decrease the attractiveness
of the SECO since it leads to a relationship of fear, scaring potential new
partners away.
4. For partners, joining a SECO will result in an increase in credibility and
visibility.</p>
      <p>This research has focused on the relationship between partners and keystone,
seen from the partner's perspective. However, other relationships do exist within
a SECO, for example, between the keystone and the technology providers. Future
research should be conducted to analyze if other relationships exist, how these
can be described and what the e ect is of these relationships on the SECO and
keystone. Moreover, additional research aimed at discovering the intensity of the
identi ed power forms in this study could also lead to further insights.
6</p>
    </sec>
    <sec id="sec-5">
      <title>Conclusion</title>
      <p>The main objective of this research was to gain a better understanding of the
in uence of the interactions between organizations and the keystone of a SECO.
This research provides multiple insights into partner and keystone dynamics
within an SECO, its main contribution to the eld of SECO being the partner
perspective. More speci cally, the conducted interviews illustrated how small
organizations are in uenced by the keystone when they join their SECO. Three
main factors have been discussed: power forms, SECO bene ts and
disadvantages. Based on the results presented in the previous section it became apparent
that partners are required to ensure their product(s) meet the keystone's
requirements and are required to pay a fee in order to be part of the SECO. However,
chances are that the partners are rewarded for their contributions to the SECO.
Secondly, the SECO bene ts as stated by the literature have been con rmed
by the partners. In addition, two new advantages were identi ed: visibility and
credibility. Finally, disadvantages could be observed as well, although these could
more accurately be called risks and can di er per partner. All in all, after joining
the SECO three of the factors described a ected the organizations.</p>
      <p>This research encompassed four partners that were active in the Exact SECO.
In the future, however, more partners can be included with di erent
backgrounds, to not only better illustrate the partner-keystone dynamics of the
SECO, but also to con rm the ndings presented in this research. In line with
this, the research could also be applied to other SECOs inside or outside the
Netherlands. Besides the new insights, improved understanding and future
research directions, this research can also be of use to the organizations that
participated. The keystone can use the observations and remarks made by its partners
to try to improve the SECO. It also provides knowledge on what the partners
struggle with or what they would like to see or do di erently. The SECO
bene ts that were observed can be used as a means to persuade organizations to
join the SECO. Finally, the organizations that are considering to join a SECO,
or this one speci cally, will know what to expect, what challenges they will need
to overcome and what risks they are taking.</p>
      <p>Acknowledgements: We would like to thank the representatives of Exact,
Invantive, Trifact365, vPlan and Partner Z for their time and contributions to
this research, as well as anonymous reviewers for their valuable feedback.</p>
    </sec>
  </body>
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            <given-names>Y.X.</given-names>
            <surname>Zhong</surname>
          </string-name>
          and
          <string-name>
            <given-names>H.</given-names>
            <surname>Ren</surname>
          </string-name>
          .
          <article-title>Partner enterprises selection for innovation alliances: A reviews perspective</article-title>
          .
          <source>International Journal of Research Studies in Science, Engineering and Technology</source>
          ,
          <volume>2</volume>
          (
          <issue>10</issue>
          ):
          <volume>8</volume>
          {
          <fpage>16</fpage>
          ,
          <year>2015</year>
          .
        </mixed-citation>
      </ref>
    </ref-list>
  </back>
</article>