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Article
Publication date: 2 June 2020

Fu Jia, Dun Li, Guoquan Liu, Hui Sun and Jorge E. Hernandez

This study explores how sharing platforms achieve platform loyalty through various operation management strategies.

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Abstract

Purpose

This study explores how sharing platforms achieve platform loyalty through various operation management strategies.

Design/methodology/approach

A multiple case study method has been conducted in two Chinese sharing economy industries: ride- and bike-sharing. Data were collected through 30 semi-structured interviews with managers from four platform companies (DiDi, Uber China, ofo and Mobike). Individual case studies were developed from the triangulation of all existing data. Concurrent with the development of these individual case studies was a cross-case analysis. Emerging patterns have been identified and compared to previous findings in the literature to build upon and modify the existing knowledge base and to formulate a series of propositions.

Findings

Platform asset characteristics and mergers and acquisitions affect supply network readiness and operational capacity, respectively, and this effect would consequently contribute to achieving platform loyalty through user satisfaction. Moreover, externality, as a moderator, may influence the strength of the relationship between satisfaction and platform loyalty.

Practical implications

The proposed theoretical model provides an overarching framework for sharing platform companies to design and operate their businesses while carefully examining the situations, contexts and actions of users and other stakeholders and choosing an appropriate strategic mechanism to drive platform growth.

Originality/value

This study is one of the first to empirically explain how firms in a sharing economy sector could gain platform loyalty by adopting an expectation–confirmation theory perspective.

Details

International Journal of Operations & Production Management, vol. 40 no. 7/8
Type: Research Article
ISSN: 0144-3577

Keywords

Expert briefing
Publication date: 2 August 2022

This review was launched just over a year ago, after Didi's USD4.4bn listing on the New York Stock Exchange -- the largest IPO by a Chinese firm since Alibaba's in 2014…

Details

DOI: 10.1108/OXAN-DB271843

ISSN: 2633-304X

Keywords

Geographic
Topical
Case study
Publication date: 20 April 2020

Geeta Singh, Rishi Dwesar and Satish Kumar

The purpose of this paper is to explore all the strategies adopted by Uber China to gain more and more market shares of Chinese markets. It included localization of its…

Abstract

Theoretical basis

The purpose of this paper is to explore all the strategies adopted by Uber China to gain more and more market shares of Chinese markets. It included localization of its core product, adaptation to Chinese demands and tying up with different Chinese companies.

Research methodology

The case study has been prepared after thoroughly studying Uber’s business in China. Secondary data is collected from credible sources such as the Uber website, newspapers, interviews and journal publications. This data helped in arriving at a basic understanding of the company, its objectives, strategies and the business model. The strategies formulated by Uber and the challenges it faced while operating in China are studied and explained based on this secondary data. Various published papers, reports released by reputed organizations and universities, interviews of managers and experts and research papers were also used to develop this case.

Case overview/synopsis

This case is developed considering the bent of today’s consumers toward sharing economy. The scope of businesses based on the concept of sharing economy is very wide and is increasing. China’s sharing economy sector was one of the fastest economies in the world. The case chronicles ride of Uber in China: from its entry in the country, strategies adopted, challenges faced and to the exit from China.

Complexity academic level

International business management at the undergraduate and postgraduate programs in management

Details

The CASE Journal, vol. 16 no. 2
Type: Case Study
ISSN:

Keywords

Article
Publication date: 4 December 2020

Minhua Wu and Stern Neill

In China, with the rapid dissemination of mobile communications technology along with congested traffic and increasingly expensive transportation costs, consumers are…

Abstract

Purpose

In China, with the rapid dissemination of mobile communications technology along with congested traffic and increasingly expensive transportation costs, consumers are turning to smartphone-enabled, ride-sharing services. Sharing economy requires trust in strangers. Based on trust transfer theory and a dyadic conceptualization of trust from cognitive to affective, the purpose of this study is to examine trust building through the use of Didi, a third-party, ride-sharing platform that mediates exchanges among strangers.

Design/methodology/approach

Structural equation modeling (SEM) results based on 242 observations indicate that the platform functions as an important enabler of trust, which influences a consumer's behavioral intention.

Findings

Specifically, Didi's reputation and security assurance have a positive influence on passengers' cognitive trust in drivers. There is also evidence that the interaction as mediated by the app between passengers and drivers helps the formation of affective trust, while the results do not support a relationship between cognitive and affective trust.

Originality/value

The research findings address trust transference between participants in the sharing economy and its effects, which have significant theoretical and practical implications and offer opportunities for future research in other sectors of the sharing economy.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 33 no. 6
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 15 August 2022

Xiaobi Zheng, Jiayue Qian and Danbo Chen

Many newly established Internet loss-making enterprises (NEILEs) are always willing to expand overseas within a very short time from their establishment. This phenomenon…

Abstract

Purpose

Many newly established Internet loss-making enterprises (NEILEs) are always willing to expand overseas within a very short time from their establishment. This phenomenon is becoming a hot research area. This paper aims to explore why these enterprises are always willing to expand overseas rapidly even if they are facing severe and persistent losses, and to study the different rapid internationalization modes and the international market entry ways for NEILEs.

Design/methodology/approach

This paper constructs a theoretical framework with the dual situation of negative attainment discrepancy and advantageous slack resources to explain the rapid internationalization of NEILEs. Furthermore, cross-case comparative analysis method, based on interviews, questionnaires and secondary data collection, is adopted to reveal the rapid internationalization modes and the international market entry ways of such enterprises.

Findings

Whether blocking competitors or seeking opportunities or both, NEILEs' goal of rapid internationalization depends on the severity and persistence of negative attainment discrepancy. When the severity and persistence of negative attainment discrepancy are very significant, moderate and mild, NEILEs choose sniper-type, opportunity-type and dual-type internationalization target mode in turn; it is very important for NEILEs to match advantageous slack resources and international market entry ways to achieve specific internationalization goals.

Research limitations/implications

This paper enriches the understanding of NEILEs' transnational entrepreneurial behavior in the era of digital economy. The theoretical contribution of this paper is that the authors build a theoretical framework based on the logical starting point, the logical fulcrum and the logic ending point for understanding the rapid internationalization of NEILEs.

Practical implications

This study demonstrates that NEILEs can also expand into foreign markets according to their own characteristics. Undoubtedly, they need to choose appropriate internationalization target mode and international market entry way in line with the extent and duration of their losses, and their advantageous slack resources.

Originality/value

In this paper, the authors construct the rapid internationalization theory of NEILEs based on the dual situation of negative attainment discrepancy and advantageous slack resources in digital economy era. Moreover, the authors discover the behavioral characteristics and patterns of NEILEs' transnational entrepreneurship.

Details

International Journal of Entrepreneurial Behavior & Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1355-2554

Keywords

Abstract

Details

Multinational Companies in China
Type: Book
ISBN: 978-1-78714-547-4

Expert briefing
Publication date: 2 August 2021

China’s ride-hailing major Didi was targeted by the Cyberspace Administration of China (CAC) ahead of its initial public offering (IPO) on June 30. It is complying with…

Details

DOI: 10.1108/OXAN-DB263188

ISSN: 2633-304X

Keywords

Geographic
Topical
Article
Publication date: 4 April 2019

Zhen Shao and Hao Yin

Drawing upon institution-based trust theory, the purpose of this paper is twofold: firstly, to examine the joint influences of legally binding and market-driven…

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Abstract

Purpose

Drawing upon institution-based trust theory, the purpose of this paper is twofold: firstly, to examine the joint influences of legally binding and market-driven institutional mechanisms in promoting customers’ trust and continuance intention in the ridesharing platform; and secondly, to examine if there exists a trust transfer mechanism between institution-based trust and interpersonal trust.

Design/methodology/approach

An online survey was conducted in China and data were collected from 307 customers in DiDi, which is one of the largest ridesharing platforms in China. Structural equation modeling statistical method was used to test the theoretical model and research hypotheses.

Findings

The empirical results suggest that market-driven institutional mechanisms, regarding feedback and surge pricing, have strong influences on customers’ trust in the ridesharing platform. In addition, legally binding institutional mechanisms, regarding payment security and driver certification, are also beneficial to promote customers’ trust. Furthermore, there is a trust transfer between customers’ trust in the platform and trust in the driver.

Practical implications

This study provides guidelines to the administrators of the ridesharing platform to establish effective institutional mechanisms. In particular, the platform can appropriately adopt and implement the legally binding mechanisms combined with market-driven mechanisms on the platform, in order to enhance customers’ trust and promote their subsequent transaction behaviors.

Originality/value

This study enriches and extends the extant literature of institution-based trust from e-commerce to the sharing economy by identifying four significant institutional mechanisms. Furthermore, this study presents a new perspective of customer trust (one-to-many) in the context of ridesharing and uncovers the transfer mechanism between institution-based trust and interpersonal trust.

Details

Internet Research, vol. 29 no. 5
Type: Research Article
ISSN: 1066-2243

Keywords

Case study
Publication date: 31 October 2017

Alice M. Tybout

Uber China is a strategy pricing case that examines the role of customer acquisition tactics and brand positioning in entering the tantalizingly large Chinese market. The…

Abstract

Uber China is a strategy pricing case that examines the role of customer acquisition tactics and brand positioning in entering the tantalizingly large Chinese market. The case adopts the perspective of an outside observer looking at Uber's efforts to compete in China from its entry in 2013 to its exit through its acquisition by Didi Chuxing, the highly dominant industry leader in China's ride-sharing market. After laying out the market opportunity, consumer and competitive landscape, and the various acquisition-related moves of Uber and the other major players, the case asks students to conduct a postmortem on Uber's failure in China. Specifically, they must consider what drew Uber to the opportunity in China and what it might have done differently in terms of positioning and customer acquisition to compete more effectively. First and foremost a pricing-related discussion, the case illustrates the relationship between pricing and acquisition tactics and brand positioning and the use of both in market entry and penetration.

Details

Kellogg School of Management Cases, vol. no.
Type: Case Study
ISSN: 2474-6568
Published by: Kellogg School of Management

Keywords

Article
Publication date: 9 August 2022

Chee Wei Cheah and Kian Yeik Koay

Underpinned by the legitimacy perspective, this study explores how ride-hailing services are legitimized through resource exchange among the industry players. The authors…

Abstract

Purpose

Underpinned by the legitimacy perspective, this study explores how ride-hailing services are legitimized through resource exchange among the industry players. The authors explore the types of legitimacy involved in the legitimation process. The authors also examine the political games being played by the actors to attain legitimacy.

Design/methodology/approach

This qualitative study involves thirty-one stakeholders/interviewees from emerging Asia. The interview data are supported by online documents and observations.

Findings

Thematic analysis shows that the industry players collaborate to achieve political, market, alliance, social, and investment legitimacy. The collaborations also legitimize industry players' existence through an eclectic mix of the numerous stakeholders' actions. This study shows how Dacin's proposed four types of legitimacy are coexisting and interconnected. It also highlights the neglected political legitimacy.

Originality/value

The findings guide the policymakers and ride-hailing operators experiencing competing requests to legitimize sustainable ride-hailing service development in urban cities.

Details

European Journal of Innovation Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1460-1060

Keywords

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