Who is this research for? Industry professionals leading digital platforms, mobile app development, innovation strategy, or data-driven product ecosystems.
Executive Summary
This research from Varun Grover at the Sam M. Walton College of Business, University of
Arkansas (Department of Information Systems), together with academic collaborators,
examines how sharing user data on mobile platforms influences third-party app (TPA)
performance. Using the rollout of Apple’s HealthKit as a natural experiment, the study
analyzes how data-sharing participation shapes app innovation, competitive dynamics,
and
ultimately, user demand.
The research highlights a fundamental strategic tension. Shared data may broaden an
app’s
strategic reach by enabling diversification into adjacent markets—a pathway that tends
to
improve performance. At the same time, access to a common data pool makes it easier
for
rival apps to create similar features, reducing differentiation within the focal market
and
intensifying competition. The findings suggest that while data sharing can fuel innovation
and growth, it may also erode competitive distinctiveness and weaken performance if
rivals
diversify more aggressively or imitate key features.
For leaders navigating digital ecosystems where openness is increasingly expected,
the
research underscores the importance of managing both the upside and downside of data-
sharing initiatives.
Action Items for Industry
- Protect differentiation when participating in data-sharing initiatives: Use
proprietary analytics, design capabilities, or intellectual property strategies to
maintain uniqueness even when data pools overlap. - Leverage data sharing to explore adjacent markets: Treat shared data as an
engine for responsible expansion into complementary offerings that broaden user
value and demand. - Monitor rival responses to your openness decisions: Recognize that your
participation may accelerate competitors’ diversification or imitation, affecting your
market position. - Balance openness with internal governance: Establish guidelines that encourage
innovation without undermining the competitive identity of your app or platform. - Evaluate platform policies with long-term ecosystem health in mind: Data-
sharing structures should align incentives for innovation while limiting excessive
feature convergence.
Quote from the Researcher
“In mobile ecosystems, data sharing is a double-edged sword: it helps apps grow into new
markets even as it makes them easier to copy in their own.”– Varun Grover
Co-Authors & Affiliations
- Franck Soh — Texas Christian University, Neeley School of Business
- Pankaj Setia — Indian Institute of Management Ahmedabad
Link to the Original Research
Published in MIS Quarterly available here: https://misq.umn.edu/misq/article-
abstract/doi/10.25300/MISQ/2025/17673/3625/Dynamics-of-Openness-in-Mobile-
Platforms?redirectedFrom=PDF
📩 Interested in learning more?
If you’d like additional information about this research or to connect directly with
the researchers, please email us at research@walton.uark.edu.
