Boundary resources are the tools, rules and support a platform owner provides so outside firms can build on its platform. They open the platform to outside developers while keeping the owner in control of what gets built and how.
Table of Contents
Types of boundary resources
- Technical: APIs, software kits and test environments that let outside software connect to the platform.
- Regulatory: developer terms, fees, design guidelines and app review, which set what developers may do and what they pay.
- Knowledge: documentation, training, forums and developer events that help outsiders learn how the platform works.
Key factors
- Balance of openness and control. Too tight, and developers leave or build unofficial workarounds. Too loose, and poor or unsafe apps reach users.
- Fit with the platform’s design. Promising access that the underlying system can’t support leaves developers unable to deliver.
- A route to users and income. Tools alone don’t attract builders. Developers also need people to find their apps and a way to get paid.
- Room to change. Rules set at launch tend to be generous to attract developers. Owners that can’t tighten them later without a revolt lose control.
Examples
Reddit. In 2023 Reddit began charging for heavy use of its API, at $0.24 per 1,000 calls. Apollo, a popular outside app, said its bill would reach about $20 million a year and closed on 30 June, as did several other outside apps. A price change to one technical resource ended them within weeks.
Shopify. In August 2021 Shopify stopped taking any share of an app developer’s first $1 million a year, down from 20%. It changed a regulatory resource, the fee terms, rather than its APIs, to make building tools for Shopify merchants pay for small developers.
Frequently asked questions
What is the difference between boundary resources and APIs?
An API is one boundary resource. The full set also includes software kits, documentation, test environments, developer terms and the review process that decides which apps go live.
Who decides what boundary resources a platform offers?
The platform owner. It can add, change or withdraw them, which gives it control over outside developers even though it doesn’t employ them.
How can a platform tell its boundary resources are too restrictive?
Developers start building unofficial workarounds, such as jailbreaks or side-loading tools, or move to rival platforms. Researchers call the first of these self-resourcing.
How do boundary resources affect network effects?
Good tools and fair terms lower the cost of building for a platform. More developers bring more apps, more apps attract more users, and more users attract more developers.
Where does the term boundary resources come from?
From information systems research. Ghazawneh and Henfridsson’s 2013 study of a smartphone app platform made it widely used, showing how owners use these resources to balance control with outside contributions.