To read this content please select one of the options below:

Multi-sided platform strategies for organizations: transforming the business model

Rubén Mancha (Department of Technology, Operations and Information Management, Babson College, Wellesley, Massachusetts, USA)
Steven Gordon (Department of Technology, Operations and Information Management, Babson College, Wellesley, Massachusetts, USA)

Journal of Business Strategy

ISSN: 0275-6668

Article publication date: 20 January 2021

Issue publication date: 4 April 2022

1811

Abstract

Purpose

The purpose of this study is to explore and summarize the strategies organizations can follow when adopting a multi-sided platform (MSP) business model. MSPs benefit from direct and indirect network effects, quick scaling, fast innovation and new revenue streams.

Design/methodology/approach

This study draws from the literature on business model innovation to identify five strategies in which organizations can transform by creating or acquiring an MSP. This taxonomy is confirmed with a classification of 20 MSPs adopted by 18 organizations, 5 short case studies and an interview with an executive involved in the launch of an organization’s MSP.

Findings

To implement an MSP, companies can expand their offerings, intermediate their industry with a marketplace, expand to new geographies or market segment, co-innovate their core product or service and co-innovate complementary offerings.

Practical implications

Organizations are presented with five distinct approaches to transform their business model and benefit from MSP interactions. The cases, quotes from executives and analyzes will serve organizations in designing a platform strategy.

Originality/value

This study provides executives and researchers with insights about how organizations can transform their business models with MSPs.

Keywords

Acknowledgements

The authors would like to acknowledge the anonymous reviewers and editor whose comments and suggestions added substantially to the quality of this article.

Citation

Mancha, R. and Gordon, S. (2022), "Multi-sided platform strategies for organizations: transforming the business model", Journal of Business Strategy, Vol. 43 No. 3, pp. 175-183. https://doi.org/10.1108/JBS-09-2020-0203

Publisher

:

Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

Related articles