The impact of platform flexibility and controls on platform attractiveness: an empirical study from the seller's perspective

Abstract

Purpose

The e-business platform has become a major driver for economic growth and development. The economic success of an e-marketplace greatly depends on the extent to which buyers and sellers are attracted to enter and actively participate in the e-business platform. Existing literature lacks empirical examination of factors influencing e-business platform attractiveness (EBPA) from a seller's perspective and understudies the interplay between technical and managerial considerations.

Design/methodology/approach

Based on the literature on network economy, modular systems theory, control theory and social exchange theory, the paper proposed that platform flexibility and platform control (PC) would affect EBPA through both direct and interaction effects. From a survey of platform sellers, the paper explored the influencing mechanisms of EBPA using hierarchical regression and fuzzy-set qualitative comparative analysis (fsQCA) to understand the statistical associations and the set relations of the conjunctions and conditions.

Findings

The paper found that platform flexibility (PF), process control and clan control (CC) positively affected EBPA. In addition, the interaction between PF and process control demonstrated a substitution effect on EBPA, and the interaction between PF and CC demonstrated a complementary effect on EBPA. Also, the authors found that the interaction between process control and CC demonstrated a complementary effect on EBPA. fsQCA provided the configurations of causal recipes associated with EBPA.

Originality/value

From a seller's perspective, the paper presents both theoretical explanation and empirical evidence for how design factors (e.g. PF) and governance factors (e.g. process control and CC) may interplay to influence EBPA.

Citation

Pan, M., Huang, R., Chi, M. and Hu, S. (2022), "The impact of platform flexibility and controls on platform attractiveness: an empirical study from the seller's perspective", Industrial Management & Data Systems, Vol. 122 No. 3, pp. 796-818. https://doi.org/10.1108/IMDS-08-2021-0528