%0 Journal Article %J Technology Innovation Management Review %D 2018 %T When a New Platform Enters a Market, What Is the Impact on Incumbents? %A Andreas J. Steur %K impact of market entry %K incumbents %K multi-sided market %K platform competition %K platforms %K two-sided market %X Digital platforms enable new forms of business models with the potential to disrupt and transform many industries. However, the impact of a platform’s market entry on incumbents has not been taken into account. In this article, our objective is to provide evidence of the impact that a platform’s market entry could have on incumbents. We proposed several hypotheses based on a literature review and then evaluated them using a large dataset from the taxi industry in New York City. Our analysis showed several changes after a platform’s market entry. In contrast to previous understanding, the results indicate that the winner-takes-it-all-effect does not generally apply to the competition between new platforms and incumbents. Regarding the date of changes following a platform’s market entry, we observed a chicken-or-egg problem in the competition between a platform and incumbents. Consequently, our results indicate that incumbents have at least one year to react to the market entry and to make adjustments. %B Technology Innovation Management Review %I Talent First Network %C Ottawa %V 8 %P 44-53 %8 10/2018 %G eng %U https://timreview.ca/article/1192 %N 10 %1 Ulm University Andreas J. Steur is Research Assistant at the Institute of Technology and Process Management (ITOP) at Ulm University, Germany. His research focuses on the management of digital platforms, particularly the competitive behaviour of digital platforms, which includes both competition between several digital platforms and competition between digital platforms and incumbents. Furthermore, his research examines the design of feedback mechanisms for digital platforms and approaches for scaling a platform. %R http://doi.org/10.22215/timreview/1192