Application Programming Interfaces (APIs)
Theory
The article looks into the design of API strategy and a balance between Return on Investment and diffusion and value creation for various public APIs offered by for-profit providers. API archetypes need to align with the overall business objectives and competitiveness. Also, businesses include value appropriation and value generation. The business aim is to have a high return on investment as a product of profit vs. costs or indirect benefits like the right business name. API diffusion refers to indirect value through the adoption of API to third-party developers and hence enhancing innovation capacity. In platform-based ecosystems, value-adding activities of resource integration are provided by multiple actors and customers.
Three API Archetypes exist, these are professional where owners charge developers directly or indirectly. An example of this API is Amazon. The second API is the Mediation Service, where third parties are given the systems and complimentary design service. Open Asset Service is where owners give to third party developers free of charge with little or integration effort. Archetype, professional service e.g., Amazon, Mediation Service e.g., Facebook Open Asset Service e.g., Git-Hub. It is essential to ensure the Alignment of API design, business goals, and objectives of third party developers.
Research Design
Qualitative and quantitative methods were used. A Survey of product managers from the programmable web was interviewed. Qualitative interviews were carried out for both primary and secondary data was collected—Cross sectional survey from 185 product managers representing several API with a response rate of 6.17 %. The surveyed companies were from different industries. This included cluster percentages.
A unifying theory composed of three methods was developed. An individual API was selected as a focal unit, and this was used in knowledge of design. Three approaches we previous studies were also considered and tested. It first looked at API ability these included Gawer’s organization-theoretic platform (Gawer, 2014)
Analysis
Qualitative content analysis for API designs and API providers. Quantitative Data analysis: cluster analysis and regression analysis of data that was done. Ordinary least squares were also applied.
Risk mitigation. Independent and dependent variables are connected. Data validation was done during the survey. A hypothesis test was carried out. Robustness check
Conclusion
A validated theoretical model was designed on the design of APIS and alignments of design to various value creation mechanisms and how this affects the return on investment. For the first time, consolidation of scattered theories of API design and strategy. Prove of theoretical hypothesis on the relationship between archetypes—unifying theory consolidating different methods on API Design and Strategy.
Formerly studied with standalone objectives related to particular aspects say markets, third party developers, data services while others considered cloud-based professional services. An integrated theory that brings together the direct and indirect value of all components towards a winning API strategy.
The study proposes further research towards strategic role regarding boundary resources and decisions regarding them for digital platforms.
Response to Gawers call for a study on the organization’s theoretical platform perspective. API design must respond to inter-organizational value creation and business objectives.
The overall conclusion is that API strategy designers must align API business objectives with value creation.
References
Gawer, A. (2014). Bridging differing perspectives on technological platforms: Toward an integrative. Research Policy, 1239-1249.