Product renewal in platform-based ecosystems: The impact of product portfolio complexity in global derivative exchanges

Purpose - Theoretical advancements in ecosystem innovation have largely focused on platform-based ecosystems within high-technology industries. This study extends prior works by examining derivatives exchange platforms —a long-established, increasingly digitalized segment of global financial services—where transaction dynamics differ from traditional platforms, thereby uncovering important contingencies in the business-to-business (B2B) marketing and ecosystem management literature. Design/methodology/approach - This study analyzes a sample of 119 derivative exchanges from 1996 to 2013 across 37 countries. Using a zero-inflated Poisson (ZIP) model, we examine how product portfolio complexity (PPC) influences new product introduction and removal, and how these effects vary with PPC magnitude. Findings - Our findings indicate that there is a nonlinear S-shaped relationship between PPC and product renewal in the context of platform-based ecosystems. The study reveals that both new product introduction and product removal are essential strategies for managing a complex product portfolio within derivatives exchange platforms, highlighting the cumulative effects of the knowledge base and ecosystem dynamics. Originality/value - This research contributes to B2B marketing and innovation research by exploring the unique dynamics of derivatives exchange platforms within platform-based ecosystems. By identifying the S-shaped relationship between PPC and product renewal, we provide valuable insights for practitioners and scholars seeking to navigate the complexities of ecosystem management and innovation strategies in digitalized B2B markets.