An analysis of factors and conditions pertaining to the rise of the sharing economy

Abstract

Purpose

This study aims to examine the various factors and conditions pertaining to the rise of the sharing economy.

Design/methodology/approach

After framing the sharing economy concept, the study adopts a multidisciplinary approach and relies on the extant literature to analyze and classify eight major groups of factors behind the rise of the sharing economy.

Findings

The analysis indicates that the sharing economy (1) represents a significant paradigm shift emphasizing utilization rather than possession and relying on mutual trust, collaboration and reciprocity; (2) benefits from fundamental transformations such as the world population growth, global urbanization, surge in the world middle class and the convergence of tastes and preferences; (3) relies on technological innovation but is affected by socio-cultural and psychological conditions; (4) is driven by emerging trends in consumption, marketing and working conditions; (5) benefits from lax or nonexistent regulation and taxation; and (6) is recognized as clean and environmentally friendly.

Originality/value

This paper's chief contribution resides in adopting a multidisciplinary perspective to offer an in-depth analysis of the various types of factors behind the rise of the sharing economy.

Citation

Yeganeh, H. (2021), "An analysis of factors and conditions pertaining to the rise of the sharing economy", World Journal of Entrepreneurship, Management and Sustainable Development, Vol. 17 No. 3, pp. 582-600. https://doi.org/10.1108/WJEMSD-06-2020-0054