Abstract:Digitization has overturned the traditional way of interaction among value creators of mobile applications (APP). Drawing upon the perspective of service-dominant(S-D) logic, the impact of online ratings on APP iterative intensity and performance, as well as the moderating effects of platform system update has been researched. Based on the unbalanced panel data from a monthly sample of apple''s App Store. By using two-way fixed effects model, the regression results show that online ratings have an inverted U-shaped relationship with App iterative intensity and performance. Furthermore, the online ratings impact APP performance directly and indirectly via APP iterative intensity. In addition, platform system update positively moderates not only the effects of APP online ratings on performance, but also the effects of APP iterative intensity on performance. The results reveals the processing mechanism of online ratings on APP performance and the platform’s contingency value, which has important practical significance for improving APP performance.