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Article
Publication date: 13 May 2020

Xing Wan, Nianxin Wang and Ben Shaw-Ching Liu

This study takes the cinema industry as the research context and investigates the impact of online to offline (O2O) platforms on cinemas' performance. Specifically, the purposes…

Abstract

Purpose

This study takes the cinema industry as the research context and investigates the impact of online to offline (O2O) platforms on cinemas' performance. Specifically, the purposes of this paper are threefold: first, to study the influence of platform multihoming on cinemas' performance; second, to examine the interaction impact of platform multihoming and vertical integration; third, to investigate how the influence of platform multihoming varies with cinemas' performance.

Design/methodology/approach

This study collects data from 1918 cinemas in China, employs quantile regressions to estimate the model and test the proposed hypotheses and adopts an instrumental variable method to examine the robustness of our results.

Findings

The findings confirm the positive role of platform multihoming for cinemas' performance. However, when a cinema has low-degree platform multihoming, the cinema's vertical integration is positively associated with its performance; when a cinema has high-degree platform multihoming, the cinema's vertical integration is negatively associated with its performance. Furthermore, results from quantile regressions indicate that low-performance cinemas benefit more than high-performance cinemas from employing platform multihoming strategy.

Research limitations/implications

This paper extends previous research by investigating the impact of platform multihoming on heterogeneous firms and the impact of interaction between platform multihoming and vertical integration. The findings imply that the impact of platform multihoming on firms' performance depends on firms' performance attributes and their vertical relationships.

Practical implications

Platform multihoming can be a double-edged sword for local service firms. When multihoming platforms, a local service firm should think about the fit between platforms and its own attributes, and identify the potential conflict between platform relationships and traditional relationships of industrial organization.

Originality/value

There is a growing interest in understanding platforms' role in the digital economy. The impact of platform participation on local service firms' performance is not sufficiently investigated. Previous research rarely addressed the impact by incorporating local service firms' performance attributes and the existing relationships of industrial organization.

Details

Internet Research, vol. 30 no. 5
Type: Research Article
ISSN: 1066-2243

Keywords

Article
Publication date: 28 February 2023

Wentao Zhan, Minghui Jiang, Xueping Wang, Da Huo and Han Jiang

Omnichannel has become increasingly important with the development of e-commerce. In omnichannel, merchants expect customers to get the products and services at anytime, anywhere…

Abstract

Purpose

Omnichannel has become increasingly important with the development of e-commerce. In omnichannel, merchants expect customers to get the products and services at anytime, anywhere and in any way, and the same is true for customers. This drives multihoming in online platforms for both merchants and customers. Thus, once both customers and merchants are multihomed, what price and subsidy decisions should be made between platforms to compete to obtain optimal profits? The main purpose of this paper is to solve these problems and provide decision-making for two-sided platforms in omnichannel.

Design/methodology/approach

This study builds a dual Hotelling model to capture the utility and network effects of customers and merchants on two-sided platforms. This study introduces the exposure effect and convenience effect of multihomed customers and merchants in the model and analyzes the impact of these effects in the market with multihoming on one side. Then, this study extends the model to the market with multihoming on both sides and makes the pricing decision for two-sided platform when considering the exposure effect and convenience effect through an equilibrium solution. Finally, this study also uses numerical analysis to simulate the decision and profit of the platform.

Findings

This paper finds that the convenience effect will only increase social welfare when customers are single-homed and merchants are multihomed. In addition, when both users are multihomed, the platform will subsidize to attract merchants and customers if the convenience effect and exposure effect are relatively high. This study also finds that network effects come not only from the same platform but also from another platform in the case with multihoming on both sides. And network effects in the heterogeneous platform will be reduced by the convenience effect and exposure effect.

Originality/value

According to the behavioral characteristics of merchants and customers in omnichannel, this paper first adopts the dual Hotelling model to study the pricing of two-sided platforms with multihoming on both sides. This paper shows that network effects originate not only from the same platform but also from another platform and that the exposure effect and the convenience effect can exist as cross-platform network effects, which provides a new explanation for network effects in markets with multihoming on both sides. This research extends the theory of network effects and plays an important role in the development of two-sided platforms in omnichannel.

Details

Kybernetes, vol. 53 no. 3
Type: Research Article
ISSN: 0368-492X

Keywords

Book part
Publication date: 14 March 2023

Michael Maffie and Mark D. Gough

This chapter extends the concept of associational power into the context of online platform work. To do so, this chapter centers on platforms' underlying economic model – the…

Abstract

Purpose

This chapter extends the concept of associational power into the context of online platform work. To do so, this chapter centers on platforms' underlying economic model – the multisided market – to better understand how workers may be able to collectively influence their terms and conditions of employment. In illuminating how labor's associational power functions in platform work arrangements, this model helps explain how collective action may function in the “gig economy” and provides a roadmap for future academic inquiry.

Methodology

This chapter develops a model of associational power in the ride-hail industry which can be extended to markets defined by geographically specific platforms, like ride-hail, delivery, domestic work, and home healthcare workers.

Findings

This chapter finds that there is substantial promise for labor unions and other worker associations in the gig economy. Additionally, we find that even well-intended regulations can harm workers' power if the regulators do not grapple with the structure of digital platforms.

Originality/Value

This chapter identifies the foundations of workers' associational power: network effects and multihoming. In contrast to traditional analyses of workers' power, labor's ability to withdraw its effort from a single employer is not the basis of its collective power. Instead, labor's power resides in its ability to withdraw its labor from a competitor and promise its exclusive labor to a single platform. Existing literature has explored the interaction between network effects and market power from the companies' perspective but has yet to extend this analysis to workers' perspective.

Details

Advances in Industrial and Labor Relations
Type: Book
ISBN: 978-1-80455-922-2

Keywords

Open Access
Article
Publication date: 11 April 2023

Vincent Heimburg and Manuel Wiesche

Information Systems (IS) research has built up a considerable understanding of digital platform ecosystems, while policymakers worldwide are aiming to introduce platform

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Abstract

Purpose

Information Systems (IS) research has built up a considerable understanding of digital platform ecosystems, while policymakers worldwide are aiming to introduce platform regulations that seek to erode fundamental mechanisms of digital platforms. This viewpoint article provides an introduction to how platform regulation affects our current understanding of digital platform ecosystems and suggests opportunities for future research.

Design/methodology/approach

A detailed analysis of the effects of the European Union (EU) Digital Markets Act (DMA) on current findings of organizational, technical and economic IS platform research.

Findings

Government regulations of digital platforms such as the DMA likely affect the central mode of operation of platforms in the scope of the regulation. The authors preconceive a major impact on platform openness, governance, steering the platform supply-side, modularity, nestedness, network effects, pricing and single-/multi-homing. In addition, the authors present opportunities for future research in each of these IS platform research streams.

Originality/value

Landmark regulations implemented in the past, such as the General Data Protection Regulation (GDPR), caused paradigm changes that fertilized research opportunities in IS and beyond. This viewpoint article aims to nudge studies that examine the changed mode of operation of platforms following platform regulation.

Details

Internet Research, vol. 33 no. 7
Type: Research Article
ISSN: 1066-2243

Keywords

Open Access
Article
Publication date: 26 March 2024

Charles Kirschbaum and Luiz Ojima Sakuda

The purpose of the article is to explore the perceptions of Brazilian game developers about the power relations between them and the sponsors of digital game platforms. It also…

Abstract

Purpose

The purpose of the article is to explore the perceptions of Brazilian game developers about the power relations between them and the sponsors of digital game platforms. It also aims to identify forms of collective action that developers can use to counteract the asymmetry of power.

Design/methodology/approach

The research employed an abductive approach, seeking empirical evidence that would challenge consolidated theory. To achieve this, semi-structured interviews were conducted with 25 Brazilian developers. The data were analyzed qualitatively using NVivo software. The aim was to resolve theoretical ambiguities identified in the literature review and to explore unexpected findings.

Findings

The study explores Brazilian game developers' perceptions through interviews, revealing their experiences within the industry’s concentrated structure and their use of collective action to navigate power dynamics.

Research limitations/implications

The study's focus on Brazil limits the generalizability of its findings to the broader game development industry.

Practical implications

The study suggests Brazilian game devs can leverage collective action to counteract power imbalance with platforms, collaborate through events and projects and facilitate internationalization of their games.

Social implications

The study suggests collective action could empower developers to challenge platform dominance and foster a stronger community among Brazilian game developers.

Originality/value

The article’s value lies in examining Brazilian devs' experiences within their specific industry context and highlighting collective action as a potential strategy for developers.

Details

Innovation & Management Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2515-8961

Keywords

Article
Publication date: 24 November 2022

Gurpreet Kour and Bhavika Chhabria

Extant literature in Video on Demand (VoD) has taken the consumer perspective; however, the stakeholder perspective is largely neglected. This paper aims to fill this gap by…

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Abstract

Purpose

Extant literature in Video on Demand (VoD) has taken the consumer perspective; however, the stakeholder perspective is largely neglected. This paper aims to fill this gap by understanding the strategies to enhance the experience and engage customers from the supplier’s point of view. The purpose of the study is to identify and analyse strategies adopted by over-the-top (OTT) platforms that ensure consumer loyalty in the VoD space.

Design/methodology/approach

Using a qualitative approach and inductive qualitative design, the authors interviewed 16 industry experts associated with OTT platforms in India and people handling various marketing-related positions. Data collected included topics related to industry landscape, the value created for a customer, consumer experience, engagement and platform stickiness. Thematic analysis was used to find meaningful semantic elements.

Findings

This study has found that consumer experience, content differentiation, consumer sense-making and engagement and platform extension as value enhancers as the key strategies been adopted in the Indian context, thereby leading to a platform’s stickiness.

Research limitations/implications

This research offers insights to policymakers of content, digital platforms, media practitioners and managers that are drawing consumers influenced by platform strategies.

Practical implications

This research provides insights to content policy makers, digital platform leaders, media practitioners, and managers who are influencing consumers through platform strategies.

Social implications

The research could help entrepreneurs and marketers understand the perspectives of stakeholders in the VoD industry in India.

Originality/value

The study encourages researchers to explore the concept of stickiness, which may or may not be equivalent to loyalty. It is important to focus on quality, frequency, and regular reminders to help customers return to the same platform in the short term.

Details

Journal of Indian Business Research, vol. 14 no. 4
Type: Research Article
ISSN: 1755-4195

Keywords

Book part
Publication date: 8 August 2022

Xingping Zhang, Feng Yang, Yaqin Hu and Zhimin Huang

For two-sided platforms, the utility of users on one side of the platform depends in part on the number of users on the other side of the platform, a phenomenon called indirect…

Abstract

For two-sided platforms, the utility of users on one side of the platform depends in part on the number of users on the other side of the platform, a phenomenon called indirect network externalities. With the rapid development of two-sided platform and the popularity of platform membership, more and more two-sided platforms have launched joint membership through horizontal cooperation in order to take advantage of indirect network externalities to increase platform profits.

Our study explores the optimal bundling strategy for platform memberships under horizontal cooperation considering indirect network externalities. The main purpose of our study is to obtain the optimal pricing under different strategies (pure component, pure bundling, and mixed bundling) and contrast different strategies under different indirect network externalities.

Results suggest that the platform's optimal pricing for consumers and sellers depends on the indirect network externalities. Interestingly, the higher the indirect network externalities from consumers, the higher the price of the platform charges to sellers, and the platform might even subsidize sellers. Besides, when there are equal proportions of different types of consumers in the market, indirect network externalities that are too high, too low, or heavily lopsided may discourage the platforms from bundling their memberships. When the composition of consumers changes, the optimal strategy will also change. Our results can be employed in practical applications of bundling, which can help the platform increase profits.

Details

Applications of Management Science
Type: Book
ISBN: 978-1-80071-552-3

Keywords

Article
Publication date: 21 October 2021

Yingzhao He, Yan Yu and Meiyun Zuo

Drawing on open systems theory, this study aims to investigate the direct and moderating effects of information collaboration in the pre-sale stage, transaction management…

Abstract

Purpose

Drawing on open systems theory, this study aims to investigate the direct and moderating effects of information collaboration in the pre-sale stage, transaction management collaboration in the transaction stage and customer service collaboration in the post-sale stage on the linkages of the online–offline store image and the market performance of small sellers.

Design/methodology/approach

Data were collected from multiple sources, including self-reported and online objective data from 148 small restaurants that simultaneously sell online and offline, for validating the developed research model. Partial least squares-based structural equation modeling was used for data analysis.

Findings

This study illustrates the direct effects of an online store’s image and online–offline collaborations on the market performance of small stores. This study further reveals the boom-bust moderating effects of different collaborations between online–offline images and market performance.

Practical implications

Small stores should be aware of the importance of information congruence and functional integration concerning online–offline collaboration. They should also recognize the paradoxical intervening effects of online–offline collaboration on different channels and arrange appropriate collaboration tactics.

Originality/value

This study presents a significant contribution to the open systems theory by revealing both constructive and destructive properties of the online–offline collaborative system with offline-to-online targeting. Vertically differentiated online–offline collaboration may strengthen one side of the store image but weaken the other side for promoting the market performance of small stores.

Details

Internet Research, vol. 32 no. 3
Type: Research Article
ISSN: 1066-2243

Keywords

Article
Publication date: 31 May 2022

Mohit Manchanda and Madhurima Deb

Extant literature on business-to-business (B2B) has largely ignored studying multi-homing through a psychological lens. This paper aims to outline the results of three constituent…

Abstract

Purpose

Extant literature on business-to-business (B2B) has largely ignored studying multi-homing through a psychological lens. This paper aims to outline the results of three constituent studies, which were designed to reveal potential differences in multi-homers’ versus single-homers’ loyalty behaviors in a B2B and supply chain management (SCM) setting; identify factors that differentiate single-homers and multi-homers in these settings; and examine the relevance and effect of perceived risk on multi-homing behaviors.

Design/methodology/approach

In Studies 1 and 2, the authors used a questionnaire-based survey to capture the perceptions of 503 and 458 SCM experts, respectively. They then deployed AMOS v.21 to perform structural equation modeling. In Study 3, the authors used a mixed-methods approach to interview 18 SCM experts and then applied these insights to a survey with 242 SCM experts.

Findings

Study 1 reveals that multi-homers’ loyalty toward their preferred SP has a weaker effect on willingness to pay premium prices and share-of-wallet than single-homers’ loyalty. Study 2 establishes that several attitudinal factors distinguish multi-homers from single-homers in a loyalty framework. Study 3 concludes that perceived risk dimensions promote multi-homing intention, which in turn promotes multi-homing behavior.

Originality/value

Through empirical investigation, the present research succeeds in establishing that multi-homing is a concern for SPs, deciphering the attitudinal factors that distinguish multi-homers and single-homers in a loyalty framework, and confirming the influence of perceived risk dimensions on multi-homing. Thus, the study has several theoretical and practical implications for B2B services in emerging economies.

Details

Journal of Business & Industrial Marketing, vol. 37 no. 10
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 23 May 2023

Yunmiao Gui, Huihui Zhai, Feng Dong and Zhi Liu

This paper aims to investigate how user expectations affect value-added service (VAS) investment and pricing decisions of two-sided platforms. It draws on the information…

Abstract

Purpose

This paper aims to investigate how user expectations affect value-added service (VAS) investment and pricing decisions of two-sided platforms. It draws on the information asymmetry theory and offers suggestions on how platform operators can manage user expectations.

Design/methodology/approach

According to the game theory, this study considers three user expectations (responsive, passive and wary). By framing the Hotelling duopoly model and comparing the VAS investment, price and platform profits, the optimal platform decision is analyzed and discussed.

Findings

The conclusions demonstrate that the monopolistic two-sided platform obtains more profits from the informed users with responsive expectations than uninformed users with passive or wary expectations. The marginal investment cost and cross-network externalities are two key factors that determine the platform's VAS investment and pricing strategies of passive or wary users. Furthermore, considering the expectation preferences, i.e. the uniformed users hold wary expectations with more information and hold passive expectations with less or no information, the results suggest that the proportion of wary users to all uninformed users increases the platform's VAS investment, profits and the price of informed users, and increase (decrease) the price of uninformed users when the cross-network externalities of informed users are relatively small (larger).

Practical implications

These results can provide insightful enlightenment into how platform operators utilize bilateral users' expectations and information level to guide their VAS investment and pricing decisions.

Originality/value

This paper is one of the first to explore the impact of three user expectations and the heterogeneity of preferences in informing users' passive or wary expectations, based on different levels of information on the decision-making of two-sided platforms regarding VAS.

Details

Kybernetes, vol. 53 no. 2
Type: Research Article
ISSN: 0368-492X

Keywords

1 – 10 of 63