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1 – 10 of 430
Article
Publication date: 24 November 2017

Mikko Hänninen, Anssi Smedlund and Lasse Mitronen

Digitalization has transformed several industries during the past two decades. In this paper the authors focus on the retail sector, where new business models help retailers and…

9832

Abstract

Purpose

Digitalization has transformed several industries during the past two decades. In this paper the authors focus on the retail sector, where new business models help retailers and suppliers meet the ever changing and demanding needs of retail shoppers. One example of this business model innovation is multi-sided digital platforms, which have become popular as they connect consumers with suppliers from around the world with a large ecosystem to support the retail platform. The purpose of this paper is to provide an overview of how multi-sided digital platforms are transforming the retail exchange logic and assess the implications and impact of these platform-based businesses on the retail sector, especially for business managers and consumers.

Design/methodology/approach

In this paper, the authors employ literature review, conceptual analysis and qualitative case study methodology. The authors provide an overview of how the platform economy is affecting the retail sector through the illustration of four digital multi-sided platforms: Alibaba Group, Amazon.com, eBay and Rakuten Group, and what differentiates them from incumbent business models in retailing.

Findings

The findings suggest that platforms transform the transaction logic of retailing as they simply intermediate transactions between buyers and suppliers rather than handling the entire supply and logistics chain themselves. The authors highlight the role of consumer understanding and Big Data as one example of how multi-sided digital platforms differentiate from their non-platform competitors.

Practical implications

The paper highlights how incumbent retailers can compete against new forms of business, such as digital platforms, and the authors demonstrate some of the managerial capabilities needed to remain relevant amidst this new digital competition.

Originality/value

Very little empirical studies in marketing and retail literature have focused on multi-sided digital platforms and their business models. The present study fills this gap with an overview of how multi-sided digital platforms transform the retail sector.

Details

Baltic Journal of Management, vol. 13 no. 2
Type: Research Article
ISSN: 1746-5265

Keywords

Article
Publication date: 18 April 2017

Guy Parmentier and Romain Gandia

This study aims to examine the way to develop a multi-sided logic for existing business models. More precisely, the objective is to find rules for designing a multi-sided business…

2561

Abstract

Purpose

This study aims to examine the way to develop a multi-sided logic for existing business models. More precisely, the objective is to find rules for designing a multi-sided business model from a one-sided business model.

Design/methodology/approach

Given that business model (BM) literature and multi-sided literature do not address the complex issue of multi-sided business model design, the authors propose here a set of six redesign operations. These operations are built from a comprehension of the development and evolution of multi-sided platforms and their consequences for business model architecture. Several empirical cases illustrate each operation.

Findings

A process of business model redesign is proposed with three phases: setting-up a technological digital platform to support the multi-sided architecture, identifying and engaging several customer groups on the platform and linking the customer groups and structuring the revenue model. This process details the chronological order in which the redesign operations can be implemented to build a multi-sided BM.

Practical implications

The importance of the stage of semi-finished development of the platform, the openness of digital content, reaching the critical threshold and the combination of a dual economic model (free/paid) is highlighted. For managers, this provides better practices to successfully manage the business model redesign process.

Originality/value

This paper helps managers in companies, especially small and medium-sized enterprises, to profit from a multi-sided business model by proposing a way to achieve it.

Details

Journal of Business Strategy, vol. 38 no. 2
Type: Research Article
ISSN: 0275-6668

Keywords

Open Access
Article
Publication date: 23 March 2020

Robert van Kalsbeek, Manda Broekhuis and Kees Jan Roodbergen

The purpose of this paper is to understand which controlling and enabling practices are used, how the numerous supplying partners are managed and how positive network effects are…

2611

Abstract

Purpose

The purpose of this paper is to understand which controlling and enabling practices are used, how the numerous supplying partners are managed and how positive network effects are generated in online service triads (multi-sided platform – supplying partners – consumers).

Design/methodology/approach

A single representative in-depth case study was conducted to refine theory on managing service triads. The main data source consists of field notes collected by one author, who held a temporary position within the organization. Additional data were collected from observations, internal documents, informal talks and 20 interviews.

Findings

The authors found controlling and enabling organizational practices in four main categories on two levels as follows: managing network composition (system level), managing order fulfillment and returns (operations level), category management (both levels) and capability enhancement (both levels).

Research limitations/implications

The authors show that both controlling and enabling practices are present in online service triads. This enables platform owners and supplying partners to share responsibilities for creating positive network effects, i.e. to increase scale, which increases value, which again attracts more suppliers and consumers, which creates more value, etc.

Practical implications

The authors present a range of and controlling and enabling practices that describe how multi-sided platforms can manage numerous supplying partners in an online context.

Originality/value

This study is the first to show that contractual and relational governance is insufficient in service triads in online settings with numerous supplying partners. Further, the authors provide empirical evidence that supply networks continuously adapt over time.

Details

Supply Chain Management: An International Journal, vol. 26 no. 3
Type: Research Article
ISSN: 1359-8546

Keywords

Open Access
Article
Publication date: 8 March 2021

Daniel Trabucchi and Tommaso Buganza

This article is based on a systematic and comprehensive review of the literature on two-sided platforms, the business structure based on the concept of matchmaking groups of…

4585

Abstract

Purpose

This article is based on a systematic and comprehensive review of the literature on two-sided platforms, the business structure based on the concept of matchmaking groups of customers (e.g. Uber or Airbnb). The research aims to identify gaps in the existing literature while providing a structured summary of the existing knowledge in the field. Finally, we propose a conceptual framework enabling platform thinking, the ability to see hybrid multi-sided platforms as a useful resource-orchestration structure to unveil innovation opportunities.

Design/methodology/approach

This study adopts a bibliometric approach, combing co-citation and text mining analyses of 196 papers, also implementing a longitudinal analysis that highlights the evolution of the field since its inception till today.

Findings

The novel aspect of the paper consists in taking a purely managerial stance of a very peculiar kind of platform, merging existing knowledge in comprehensive frameworks while providing potential avenues for research.

Research limitations/implications

From an academic perspective, this research highlights the double nature of two-sided platforms: as an operational choice or as a way to exploit (digital) assets and reach the economic sustainability. A research agenda is proposed, based on three pillars: a side-based standpoint, a business model perspective and an evolutionary stance to see how these businesses may evolve.

Practical implications

The research identifies different literature streams that may help practitioners in identifying how two-sided platforms may help them in fostering innovation.

Originality/value

The identification of two-sided platforms as a different way to create value (transaction platforms) or to capture value (non-transaction platform), enhancing the debate on this innovative business model. A research agenda to bring the field forward is proposed.

Details

European Journal of Innovation Management, vol. 25 no. 6
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 17 November 2020

Lei Huang, Yandong Zhao, Guangxi He, Yangxu Lu, Juanjuan Zhang and Peiyi Wu

The online platform is one of the essential components of the platform economy that is constructed by a large scale of the personal data resource. However, accurate empirical test…

Abstract

Purpose

The online platform is one of the essential components of the platform economy that is constructed by a large scale of the personal data resource. However, accurate empirical test of the competition structure of the data-driven online platform is still less. This research is trying to reveal market allocation structure of the personal data resource of China's car-hailing platforms competition by the empirical data analysis.

Design/methodology/approach

This research is applying the social network analysis by R packages, which include k-core decomposition and multilevel community detection from the data connectedness via the decompilation and the examination of the application programming interface of terminal applications.

Findings

This research has found that the car-hailing platforms, which establish more constant personal data connectedness and connectivity with social media platforms, are taking the competitive market advantage within the sample network. Data access discrimination is a complementary method of market power in China's car-hailing industry.

Research limitations/implications

This research offers a new perspective on the analysis of the multi-sided market from the personal data resource allocation mechanism of the car-hailing platform. However, the measurement of the data connectedness requires more empirical industry data.

Practical implications

This research reveals the competition structure that relies on personal data resource allocation mechanism. It offers empirical evidence for governance, which is considered as the critical issue of big data research, by reviewing the nature of the data network.

Social implications

It also reveals the data convergence process of the social system and the technological system.

Originality/value

This research offers a new research method for the real-time regulation of the car-hailing platform.

Details

Data Technologies and Applications, vol. 55 no. 2
Type: Research Article
ISSN: 2514-9288

Keywords

Article
Publication date: 13 May 2022

Feiyan Lin, Hengqi Tian, Jing Zhao and Maomao Chi

E-commerce content platforms are a typical type of multi-sided platform that combines transactions with social media platforms. To solve the managerial dilemma of balancing the…

Abstract

Purpose

E-commerce content platforms are a typical type of multi-sided platform that combines transactions with social media platforms. To solve the managerial dilemma of balancing the tension between control and autonomy of influencers' output performance, this study aims to investigate how exercising output controls through performance rewards and performance punishments impact the quantity and quality of influencers' content generation.

Design/methodology/approach

Choosing JD WeChat Shopping Circle as the research context and leveraging the introduction of a double commission subsidy policy and a removal policy as quasi-natural experiments, this study applied the difference-in-differences (DID) method to empirically test hypotheses.

Findings

Performance rewards incentivize influencers to generate high-quality content, but such incentivizing effects attenuate over time. Performance punishment drives influencers to generate expected pieces of high-quality content, and such safeguarding effects accentuate over time.

Originality/value

This study proposes output controls as an important form of governance mechanism in multi-sided platforms and substantiates how rewards and punishments as two facets of incentives affect complementors' behaviors. In addition, by distinguishing performance-contingent rewards from completion-contingent rewards, this study helps resolve the mixed findings on the effects of monetary rewards in the user-generated content (UGC) literature.

Details

Internet Research, vol. 33 no. 2
Type: Research Article
ISSN: 1066-2243

Keywords

Article
Publication date: 12 March 2018

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

1794

Abstract

Purpose

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

Design/methodology/approach

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Findings

Multi-sided platforms, such as those used by Amazon and Alibaba, have dramatically reshaped the retail industry. Old giants, like Walmart, are struggling to keep up with the innovation and customer retention that these new retail giants can command, meaning managers need to update their approach to retail sales.

Originality/value

The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Details

Strategic Direction, vol. 34 no. 3
Type: Research Article
ISSN: 0258-0543

Keywords

Article
Publication date: 21 August 2007

Martijn Poel, Andrea Renda and Pieter Ballon

This paper aims to explain and demonstrate how business model frameworks can be used to understand market developments and to assess the role of policy in (multi‐sided) ICT

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Abstract

Purpose

This paper aims to explain and demonstrate how business model frameworks can be used to understand market developments and to assess the role of policy in (multi‐sided) ICT markets.

Design/methodology/approach

The research approach in the paper builds on integrated business model frameworks, which cover (much) more than the financial decisions of one single firm. A case study approach is implemented and tested in two studies on digital content platforms.

Findings

Relevant policy instruments are identified and explored. To some extent, the findings are complementary or contradictory to the findings of existing studies on digital content platforms. The paper includes policy recommendations related to mobile and fixed content platforms.

Research limitations/implications

Limitations of the study are due to the explorative and qualitative approach, and are to be complemented by other approaches. Policy makers and researchers can use the approach to analyse digital content platform developments and the impact of policy. Stakeholders in innovation processes can use the approach to address business models as well as policy issues for emerging platforms and services.

Originality/value

The use of business model analysis in the context of policy analysis is a relatively new approach that is inspired by research findings on information communication technology (ICT) platforms and multi‐sided networks, progress in business model studies, challenges in the policy mix for ICT, and the importance of case study methods for impact assessment.

Article
Publication date: 21 March 2024

Sukarmi Sukarmi, Kukuh Tejomurti and Udin Silalahi

This study aims to analyze the development of digital market characteristics particularly focusing on how the strategic choices of platforms are not fully reflected in pricing. In…

Abstract

Purpose

This study aims to analyze the development of digital market characteristics particularly focusing on how the strategic choices of platforms are not fully reflected in pricing. In addition, the implications for the development of theories of harm are investigated to explore the necessity of a relevant market definition in assessing infringement and evaluating the adequacy of Indonesian competition law.

Design/methodology/approach

This study is a legal analysis that uses statutory approaches, cases, comparative law and the development of theories of harm in digital mergers. The case approach is conducted by analyzing three cases decided by the Indonesia Business Competition Supervisory Commission. This approach provides insight into the response of Komisi Pengawas Persaingan Usaha concerning the merger and acquisition cases in the digital era as well as the provision of different analyses in conventional markets. However, competition can be potentially damaged in digital markets and a comparative law approach is taken by analyzing digital merger cases decided by authorities in other countries.

Findings

Results reveal that the digital market has created a “relevant market” that is challenging and blurred due to multi-sided network effects and consumer data usage characteristics. Platform-based enterprises’ prices fluctuate due to the digital market’s network effect and consumer data statistics. Smartphone prices depend on the number of apps and consumer data. Neoclassical theory focusing on product markets and location applied in Indonesia must be revised to establish a relevant digital economy market. To evaluate digital mergers, new harm theories are needed. The merger should also protect consumer data. Law Number 27 of 2022 on Personal Data Protection and Government Regulation on the Implementation of Electronic Systems and Transactions protects online consumers, a basic step in due diligence for digital mergers. The Indonesian Government should promptly strengthen the notion of “relevant markets” in the digital economy, which could lead to fair business competition violations like big data control. Notify partners or digital merger participants of the accessibility of sensitive data like transaction history and user location.

Originality/value

The development of digital market characteristics has implications for developing theories of harm in digital markets. Indonesian competition law needs to develop such theories of harm to analyze the potential for anticompetitive digital mergers in the digital economy era.

Details

International Journal of Law and Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1754-243X

Keywords

Book part
Publication date: 27 October 2015

Joanne Jin Zhang, Yossi Lichtenstein and Jonathan Gander

Digital business models are often designed for rapid growth, and some relatively young companies have indeed achieved global scale. However, despite the visibility and importance…

Abstract

Digital business models are often designed for rapid growth, and some relatively young companies have indeed achieved global scale. However, despite the visibility and importance of this phenomenon, analysis of scale and scalability remains underdeveloped in management literature. When it is addressed, analysis of this phenomenon is often over-influenced by arguments about economies of scale in production and distribution. To redress this omission, this paper draws on economic, organization, and technology management literature to provide a detailed examination of the sources of scaling in digital businesses. We propose three mechanisms by which digital business models attempt to gain scale: engaging both non-paying users and paying customers; organizing customer engagement to allow self-customization; and orchestrating networked value chains, such as platforms or multi-sided business models. Scaling conditions are discussed, and propositions developed and illustrated with examples of big data entrepreneurial firms.

Details

Business Models and Modelling
Type: Book
ISBN: 978-1-78560-462-1

Keywords

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