Making platform firms’ competitive advantage sustainable: The roles of network orchestration capabilities and collaborative innovation

Currently, platform firms lack a sustainable competitive advantage (SCA). Most studies on platform firms’ SCA have adopted a market, rather than a resource, perspective. However, compared with traditional firms, platform firms are highly dependent on external resources, establish close ties with network members. Thus, this research introduces Network Orchestration Theory, defines platform firms as sponsor–orchestrators, rather than player–orchestrators as in existing studies, and develops a theoretical model in which network orchestration capabilities enhance SCA via collaborative innovation, and environmental complexity moderates the main effect. The regression results from Chinese platform firms show that network orchestration capabilities (knowledge mobility, innovation appropriability and network stability) enhanced platform firms’ SCA, collaborative innovation mediated, and environmental complexity weakened the positive effect of innovation appropriability on SCA. This research provides suggestions for platform firms’ SCA, supports research on the classification of network orchestrators, and advances platform research and Network Orchestration Theory.