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Article
Publication date: 10 April 2024

Enhui Yan, Jianlin Wu and Jibao Gu

The purpose of this paper is to investigate how complementors’ marketing capability and technology capability affect their performance. Drawing on social capital theory, the…

Abstract

Purpose

The purpose of this paper is to investigate how complementors’ marketing capability and technology capability affect their performance. Drawing on social capital theory, the authors examine platform network centrality as a mediator and platform reputation as a moderator of the relationships between these two capabilities and complementor performance.

Design/methodology/approach

This study collects data by questionnaire from 154 Chinese firms adopting e-commerce platforms. Hierarchical multiple regression is used to test the hypotheses of this study.

Findings

This study finds that complementors’ marketing capability and technology capability positively affect performance by increasing their platform network centrality. Moreover, platform reputation positively moderates the relationship between platform network centrality and complementor performance, and it strengthens the mediating role of platform network centrality.

Originality/value

This paper emphasizes the critical role of marketing capability and technology capability on complementor performance. It explores the improvement path of complementor performance from the perspective of network position, which is a key element for complementors to effectively leverage their capabilities to build competitive advantage.

Details

Chinese Management Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 25 December 2023

Ping Li and Bin Wu

Due to the cross-network effect, two-sided users communicate with each other, producing a coupling network. To study the spread of platform self-operation in two-sided users'…

Abstract

Purpose

Due to the cross-network effect, two-sided users communicate with each other, producing a coupling network. To study the spread of platform self-operation in two-sided users' marketing and purchasing tactics, this paper considers the differences in reputation acquired by platform-owned and third-party operating channels.

Design/methodology/approach

This study proposes a two-layer network with cross-network links: one layer represents the social network of consumers, while the other layer represents the competitive network of buyers. A closed system of differential equations, based on the binary dynamics of the stochastic network, is developed to study the trend and stability points of the platform self-operation dissemination. Then the overall benefits of platform are analyzed to unify the platform diffusion and pricing strategies.

Findings

The degree of difference in social influence and cross-network effects affect diffusion synergistically. Cross-network effects hinder diffusion when there is a significant difference of social influence between consumers and sellers but promote diffusion when there is little difference of social influence between consumers and sellers. Additionally, the network weights and reputation gap exhibit a nonlinear correlation with diffusion. For pricing strategy of the platform, it can achieve maximum profit when the pricing of self-operated goods and third-party-operated goods is equal.

Originality/value

This study considers the complex network architecture created by bilateral markets and the dynamic influence of group interactions on product. Additionally, this study takes reputation into account when considering the price and dissemination tactics of various operating channels, offering guidelines for platforms to control merchants and mediate disputes between various operating channels.

Open Access
Article
Publication date: 18 July 2023

Weiyao Kang and Mengxi Yang

This study aims to provide an in-depth understanding of investors’ cognition and decision-making process with regard to internet financial products. The objective is to…

Abstract

Purpose

This study aims to provide an in-depth understanding of investors’ cognition and decision-making process with regard to internet financial products. The objective is to effectively guide users’ rational investments.

Design/methodology/approach

First, based on grounded theory, this study develops a tool for measuring users’ perceived value (PV) of internet financial products via in-depth interviews. Then, after comprehensively considering users’ environmental, individual and psychological characteristics, this study proposes a theoretical model of internet financial product investment decisions based on the PV of users. Finally, an empirical study is conducted on 693 valid sample data from e-commerce and online banking financial platforms.

Findings

The empirical results suggest that network externalities influence users’ financial behavior by herding (HE) (imitating others and discounting their own information) and PV. PV and HE are key factors in users’ investment decisions with regard to internet financial products. Moreover, users’ self-efficacy (SE) and platform type play moderate roles in the influence mechanism.

Practical implications

The research conclusions provide valuable references for designing financial products and establishing regulatory rules, which will help the internet financial industry to grow soundly and innovatively.

Originality/value

This study uncovers the mediating effect of HE and PV between network externalities and users’ investment intentions in the context of internet financial products. In addition, the moderating effect of users’ SE and platform types is revealed.

Details

Journal of Electronic Business & Digital Economics, vol. 2 no. 1
Type: Research Article
ISSN: 2754-4214

Keywords

Article
Publication date: 7 November 2022

Liang Shen, Runjie Fan, Yuyan Wang, Hua Li and Rongyun Tang

Considering the network externalities of online selling, this paper builds three different online direct selling models: manufacturer direct selling (MN model), network platform

292

Abstract

Purpose

Considering the network externalities of online selling, this paper builds three different online direct selling models: manufacturer direct selling (MN model), network platform direct selling (NN model) and retailer direct selling (RN model). The optimal advertising and pricing decision and corporate profits under each selling model are investigated.

Design/methodology/approach

Combining the characteristics of online direct selling, this paper formulates direct selling models that are dominated by different companies as Stackelberg game models. Numerical analyses are carried out, along with the comparison of the equilibrium solutions for each model.

Findings

The authors' research shows that increasing network externalities is conducive to the development of enterprises. The network platform's profit is the lowest in the RN model and the highest in the NN one. The comparison of manufacturers' profits between the MN model and the NN model primarily depends on consumers' sensitivities for sales price and advertising promotion level. The manufacturer does not benefit from the RN model due to the lowest efficiency.

Originality/value

Coupled with three different online direct selling models and detailed analyses of the optimal solutions, this study has enriched the theoretical foundation of online direct selling. Moreover, this study extends the research of network externalities to the field of e-commerce, revealing the network externalities' influence on the decision-making of the e-supply chain.

Details

Industrial Management & Data Systems, vol. 123 no. 11
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 21 November 2022

Yongqing He, Bo Zou, Jieyi Pan and Zhenxing Bu

For the basic problems on platform innovation, such as platform innovation connotation and characteristics, the driving mechanism and the influence mechanism are less been…

Abstract

Purpose

For the basic problems on platform innovation, such as platform innovation connotation and characteristics, the driving mechanism and the influence mechanism are less been studied. This study aims to explore how to achieve platform innovation in traditional service enterprises.

Design/methodology/approach

Based on the theory of enterprise network and binary learning, respectively, this paper discusses the behavior of binary learning based on network structure and network impact on efficiency and innovative platform innovation, and analyzed the realization of the platform innovation path.

Findings

The research draws the following conclusions: the network structure-based exploitative learning can promote the efficiency platform innovation, while the network behavior-based exploratory learning can promote the novelty platform innovation. The interaction between network structure and network behavior embedded in traditional services is more conducive to exploratory learning so as to promote novelty platform innovation, and the platform innovation of traditional service enterprises is a process from efficiency-oriented to novelty-oriented. The innovation effect generated by exploratory learning based on network behavior is much higher than that generated by exploitative learning based on network structure. The theoretical contributions of this study are as follows: first, this study compares the similarities and differences between service innovation of platform-oriented enterprises and platform innovation of service enterprises. On this basis, it clearly defines the concept of platform innovation and divides it into two categories: efficiency platform innovation and novelty platform innovation. Second, it reveals the two paths for traditional service enterprises to realize platform innovation, and the interaction between these two paths are also explored, which promotes the scenario-based and dynamic study of platform innovation in traditional service enterprise. The conclusion of this study provides theoretical reference for traditional service enterprises to carry out platform innovation.

Originality/value

Theoretical contribution of this paper lies in: first, the concept of platform innovation is clearly defined. Current research about platform innovation is mainly around the innovation of platform enterprise and the platform innovation of traditional enterprise, but there is no document that makes clear distinction; some literature even equates innovation of platform enterprise with platform innovation of traditional enterprise. In this paper, through a detailed literature review and analysis, clearly define the concept of platform innovation and divided into efficiency platform innovation and novel platform innovation, which has made theoretical contribution to the depth of the research. Second, expand the platform innovation research of traditional service industry. In recent years, the platform innovation research of traditional enterprise has become a hot spot, but they focus on the attention of the platform transformation of traditional manufacturing industry, such as Haier; the traditional service industries seem to be “empty,” but, in fact, the traditional service industry platform innovation is of great significance and more worth looking forward to. In this paper, the longitudinal case studies can promote academic concerns focus on the traditional service industry, and also provides the theory instruction practice. Third, it promotes the platform innovation research of traditional enterprise and dynamic analysis. Based on the theory of enterprise network and binary learning, respectively, it discusses the behavior of binary learning based on network structure and network impact on efficiency and innovative platform innovation, and analyzed the realization of the platform innovation path. On the one hand, it enriches the research type of platform innovation; on the other hand, the dynamic evolution mechanism of platform innovation research can make up for the deficiency of the existing literature.

Details

Nankai Business Review International, vol. 14 no. 1
Type: Research Article
ISSN: 2040-8749

Keywords

Article
Publication date: 26 June 2023

Jingke Sun, Xiongbiao Xie, Min Zhou and Liang Yan

While the theory and practice of open innovation networks are flourishing, green innovation in manufacturing small and medium-sized enterprises (SMEs) is stagnant. This study…

Abstract

Purpose

While the theory and practice of open innovation networks are flourishing, green innovation in manufacturing small and medium-sized enterprises (SMEs) is stagnant. This study explores the mechanism driving green innovation in manufacturing SMEs under open innovation networks based on the role of innovation platforms' relational governance.

Design/methodology/approach

A quantitative study was conducted using questionnaires to collect data from 270 manufacturing SMEs in Zhejiang Province and employing a structural equation model to test the developed hypotheses.

Findings

The results revealed that innovation platforms' relational governance positively affects green innovation in manufacturing SMEs. Furthermore, the collaborative innovation atmosphere and risk perception mediate this relationship through a respective mediating role and a chain-mediating role.

Originality/value

This study is the first to empirically investigate the mechanism of the influence of innovation platforms' relational governance on green innovation in manufacturing SMEs, provide a new perspective for understanding the antecedents of green innovation under open innovation networks, and expand the theoretical research on open innovation management.

Details

Management Decision, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 28 February 2023

Shan Du

This paper aims to propose the mechanism of cross-network effect embedded, which can help cross-border e-commerce (CBEC) platforms strengthen cooperative relationships with…

Abstract

Purpose

This paper aims to propose the mechanism of cross-network effect embedded, which can help cross-border e-commerce (CBEC) platforms strengthen cooperative relationships with sellers more equitably and effectively by using the network structural characteristics of the platforms themselves.

Design/methodology/approach

A two-stage evolutionary game model has been used to confirm the influence factors. The mathematical derivation of evolutionary game analysis is combined with the simulation method to examine the role of cross-network effect in cooperation. The evolutionary game model based on the cross-network effect is proposed to achieve better adaptability to the study of cooperation strategy from the two-sided market perspective.

Findings

The evolutionary game model captures the interactions of cross-network effect and the influence factors from a dynamic perspective. The cross-network effect has a certain substitution on the revenue-sharing rate of SMEs. CBEC platforms can enhance the connection between consumers and the website by improving the level of construction, which is a good way to attract sellers more cost-effectively and efficiently.

Research limitations/implications

This study provides a new method for the validation of the cross-network effect, especially when data collection is difficult. But this method is only a numerical simulation. So the conclusions still need to be further tested empirically. Besides, researchers are advised to explore the relationship between the added user scale and the cross-network effect in some specificCBEC platforms.

Practical implications

This study provides a new method for the validation of the cross-network effect, especially when data collection is difficult. But this method is only a numerical simulation. So the conclusions still need to be further tested empirically. Besides, researchers are advised to explore the relationship between the added user scale and the cross-network effect in some specific CBEC platforms.

Originality/value

Investigations that study cooperation strategy from the cross-network effect perspective in CBEC are limited. The research figured out which influence factors are affected by the cross-network effect in cooperation. A two-stage evolutionary game model was proposed to explain the interaction of the factors. The evolutionary game analysis with a simulation method was combined to highlight the role of cross-network effect on cooperation strategy to give a deeper investigation into the sustainable cooperation ofCBEC.

Details

Kybernetes, vol. 53 no. 5
Type: Research Article
ISSN: 0368-492X

Keywords

Open Access
Article
Publication date: 3 November 2022

Zhang Qian, Cui Wei, Tang Chao and Luo Yan

With the rapid development of the digital economy, an increasing number of digitalized two-sided platforms have deployed the tying strategy to leverage their market power from the…

Abstract

Purpose

With the rapid development of the digital economy, an increasing number of digitalized two-sided platforms have deployed the tying strategy to leverage their market power from the core two-sided product to other two-sided products in the competitive market, which transforms the competition among single platforms into that among platform ecological networks. To clarify the mechanism of the formation of the digital platform ecological networks, this paper aims to analyze the expansion and stability of platform ecology by exploring the impacts of network externalities and sellers’ heterogeneity on the tying strategy of two-sided platforms.

Design/methodology/approach

This paper develops a game model of two-sided platforms based on Choi and Jeon (2021), which highlights the decisive influence of non-negative price constraints (NPC) on platforms’ tying motivation. Taking the operating systems market as an example, we expand from the perspective of platform service differences to relax the NPC and explore the internal logic of platform ecosystem expansion.

Findings

Platforms have an incentive to charge lower prices or even subsidize buyers when the network externalities on the sellers’ side are relatively strong. When the product is highly differentiated and heterogenous, platforms are motivated to tie to capture more buyers with a lower price and grab excess profits from sellers. Eventually, tying is able to consolidate the two-sided platform ecological networks by excluding competitors, capturing user value and deterring entry.

Originality/value

In order to describe the characteristics of platform ecological network more generally, this paper extends the research based on the analyses of Choi and Jeon (2021) by (1) allowing horizontal differences between tied products and (2) relaxing the NPC. Unlike Choi and Jeon (2021), this paper allows platforms to charge users of two-sided platforms at negative prices (or to subsidize them). (3) Setting simultaneous pricing in two-sided platforms. Classical two-sided market theory stresses that the presence of cross-network externalities can give rise to a “chicken and egg” problem.

Details

Journal of Electronic Business & Digital Economics, vol. 1 no. 1/2
Type: Research Article
ISSN: 2754-4214

Keywords

Article
Publication date: 4 January 2023

Elvira Anna Graziano, Lucrezia Fattobene, Guido Giovando and Annaclaudia Pellicelli

The purpose of this paper is to explore whether and how the innovation performance of start-ups and small and medium-sized enterprises (SMEs) that collect funds using equity…

Abstract

Purpose

The purpose of this paper is to explore whether and how the innovation performance of start-ups and small and medium-sized enterprises (SMEs) that collect funds using equity crowdfunding (EC), i.e. creators (or proponents), and the EC performance are influenced by the social media networks (SMNs) in which EC platforms' managers and firms exchange their ideas with investors and customers.

Design/methodology/approach

The empirical analysis is conducted on a sample composed by all the creators that collected funds in EC platforms over the three-year period 2018–2020. For each creator, the innovation performance is computed as the percentage of sales from new or significantly improved product and services compared to total sales of firm. For each campaign, the EC performance is considered as the ratio between the total amount of funding raised at the end of the campaign and the target capital for the campaign. To investigate EC platform social media activity, LinkedIn profiles of EC platforms managers are analyzed using the social network analysis (SNA) methodology, which permits to observe the quantity and the quality of managers' interactions with other users. A regression analysis is thus performed to observe the relationship between managers' LinkedIn activities, EC performance and creators' innovation performance.

Findings

Data reveal that EC platforms managers display different activities in networking, with some individuals more active than others and more oriented to interact with business profiles rather than personal ones. The variables related to managers' LinkedIn activities are shown to impact both on the EC performance and on the ability of creators to innovate, suggesting the existence of a link between creators, EC platforms and the activity of the subject who manages it.

Originality/value

The present study is the first to examine the link between the ability of creators to innovate and SMNs, focusing on the social links of platforms managers and considering the LinkedIn social media; moreover, the analysis is conducted analyzing the quality of the interactions in addition to their number. The study is original also in that rather than focusing on specific EC platforms it considers all those purposefully authorized by the Italian financial market supervisory authority over a three-year time span. From a managerial point of view, the observation of the relevance of social networks by personnel with specific professional skills reveals it can be a successful driver for operators in the sector, not only to safeguard their reputation, but to stimulate the processes of co-creation of value that is essential in the crowdfunding market.

Details

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

Keywords

Article
Publication date: 6 July 2015

Pawel Korzynski

The purpose of this paper is twofold: to examine the role of online networks in employee engagement and to analyze the factors influencing leaders’ involvement in online social…

3583

Abstract

Purpose

The purpose of this paper is twofold: to examine the role of online networks in employee engagement and to analyze the factors influencing leaders’ involvement in online social networking.

Design/methodology/approach

The study’s participants included team leaders, managers and directors working in Fortune 500 companies in the USA. Data were collected through structured surveys delivered through LinkedIn, professional online networking platform to randomly selected users with leadership roles. Totally, 194 matched questionnaires were returned.

Findings

The results indicate that employee engagement is positively associated with the time leaders spend on internal online networking platforms, the code of online networking conduct, and the presence of an open-organizational culture. Furthermore, the study shows that organizations can influence leaders’ use of online social networking platforms through an open culture and training. Finally, the findings also indicate that leaders, who communicate with a higher percentages of employees through internal and external platforms, also spend more time on online social networking platforms than those who do not. Surprisingly, a hierarchical structure and the code of conduct are not an indicator of the number of hours that leaders spend on online networking platforms.

Research limitations/implications

The study has three main limitations. First, it was conducted among leaders working in companies from the Fortune 500 list, because the majority of these companies have already implemented internal networking platforms, which are not yet popular in small and medium enterprises (SME). In the future, companies from the SME sector are also worth studying. Second, the study was undertaken among leaders from the USA, because most of the online networking platforms were developed there and then adopted in other countries. Online networking trends in other countries are also very interesting topics for study in future research projects. Third, the quality of the time leaders spend on online platforms should also be examined in future studies.

Practical implications

The next generation of leaders should pay increasing attention to online social networking platforms so as to be more effective in fostering employees’ social and emotional well-being. Organizations that seek ways to facilitate involvement among their leaders in internal online networking, need to organize training and support leaders and employees in the use of online networking platforms.

Social implications

The use of online social networking platforms change the way people communicate with others and how companies can use online social networking for the social well-being of their employees.

Originality/value

This research provides a new look at employee engagement in the current working environment as well as organizational features fostering leaders’ involvement in online networking.

Details

Journal of Managerial Psychology, vol. 30 no. 5
Type: Research Article
ISSN: 0268-3946

Keywords

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