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1 – 10 of 284Sukarmi 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.
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Dan Huang and Songshan (Sam) Huang
This study aims to provide insights into Airbnb’s exit from the China market, specifically from the perspective of platform competition.
Abstract
Purpose
This study aims to provide insights into Airbnb’s exit from the China market, specifically from the perspective of platform competition.
Design/methodology/approach
Based on the understanding of the evolution and competition of peer-to-peer (P2P) accommodation market in China and the double-edged network effects, this viewpoint article provides an in-depth discussion on Airbnb’s withdrawal from the China market.
Findings
This viewpoint paper contends that Airbnb faced increasing challenges in establishing unique competitive advantages against local rivals, who demonstrate a capacity for innovation and maintaining loyal customers in adapting to the market evolution. Consequently, this may inhibit Airbnb from attracting the mainstream market and lead Airbnb into a negative spiral, exacerbated by indirect network effects.
Originality/value
This study offers insights into the failure of an internationalisation process, drawing from an analysis of the competitive environment and the competition strategies of P2P accommodation platforms in China. These findings have practical implications for the implementation of international business strategies in P2P accommodation.
研究目的
本观点文章旨在基于平台竞争的视角对爱彼迎退出中国的现象进行阐释
研究设计/方法
基于对中国共享住宿/民宿市场的演变和竞争、双边网络效应的理解, 本文对爱彼迎退出中国进行了深入探讨。
研究结果
本文提出, 爱彼迎在建立独特竞争优势以应对本地竞争对手方面面临日益严峻的挑战, 因为本地竞争者在适应市场变化方面展现出突出的创新和留客的能力。这可能会阻碍爱彼迎吸引主流市场, 并导致其跌入由间接网络效应加剧的恶性循环中。
原创性/价值
基于对中国共享住宿平台的竞争环境和策略的分析, 本文洞悉了一个国际化失败的案例。本文的发现对于共享住宿的国际化策略实施具有实践意义。
Objetivo
Este artículo de opinión pretende aportar ideas sobre la salida de Airbnb del mercado chino, concretamente desde la perspectiva de la competencia entre plataformas.
Diseño/metodología/enfoque
Basándonos en la comprensión de la evolución y la competencia del mercado de alojamientos P2P en China, así como en los “efectos de red de doble filo”, este artículo de opinión ofrece una discusión en profundidad sobre la retirada de Airbnb del mercado chino.
Resultados
Este documento sostiene que Airbnb enfrentó desafíos crecientes para establecer ventajas competitivas únicas frente a sus rivales locales, demostrando estos últimos una capacidad de innovación y del mantenimiento de la lealtad de sus clientes al adaptarse a la evolución del mercado. En consecuencia, esto puede inhibir a Airbnb para atraer al mercado principal y llevar a la empresa a una espiral negativa, exacerbada por efectos de red indirectos.
Originalidad/valor
Este estudio ofrece una visión del fracaso de un proceso de internacionalización, a partir de un análisis del entorno competitivo y de las estrategias de competencia de las plataformas de alojamiento P2P en China. Estos resultados tienen implicaciones prácticas para la aplicación de estrategias empresariales internacionales en los alojamientos P2P.
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Fengwen Chen, Lu Zhang, Fu-Sheng Tsai and Bing Wang
This study focuses on the self-organized cooperative consumption of platform participants on social media platform, and reveals how the brand owner cooperates with two-sided…
Abstract
Purpose
This study focuses on the self-organized cooperative consumption of platform participants on social media platform, and reveals how the brand owner cooperates with two-sided customers to achieve value co-creation.
Design/methodology/approach
The authors adopted a case study approach to explore how a Chinese beauty startup developed collaborative networks from 2013 to 2022, and tracked the the changes of network structure and cooperation mechanism.
Findings
The study finds that the brand owner cooperates with two-sided customers to integrate resources and establish diverse relational trust, which enhances the evolution of a heterogeneous collaborative network for value co-creation.
Originality/value
The study builds upon traditional dyadic actor-to-actor interactions between providers and customers, develops a novel interaction framework of actor-to-network to explain the value co-creation by collaborative networking, reveals the self-organized mechanism of cooperative consumption on social media.
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Xiaojing Zhang and Yulin Zhang
This study highlights the impact of mental accounts on a user's decision-making regarding payment schemes and aims to determine the pricing strategy for the first-enjoy-after-pay…
Abstract
Purpose
This study highlights the impact of mental accounts on a user's decision-making regarding payment schemes and aims to determine the pricing strategy for the first-enjoy-after-pay service offered by the two-sided media platforms.
Design/methodology/approach
This study establishes a game-theoretic model and utilizes backward induction to derive the equilibrium price by maximizing the monopolist's profit.
Findings
The findings indicate that the conditions for a two-sided media platform to offer the first-enjoy-after-pay service depend on the trade-off between pleasure attenuation and pain buffering and the effect of time discounts. Moreover, the authors found that the time discount is a critical factor in determining pricing strategies under various payment schemes offered by the platform.
Research limitations/implications
This work adopts a uniform pricing strategy for users who opt for either immediate or post-payment schemes. Nevertheless, it is important to note that this approach has limitations in terms of offering discriminatory pricing for those who choose both payment schemes.
Practical implications
This analytical work provides valuable insights for two-sided media platforms to optimize their payment scheme strategies and pricing considering the influence of a user's mental account.
Originality/value
In a two-sided media platform, the authors provide applicable conditions for the platform to offer first-enjoy-after-pay service considering the effect of mental accounts. Further, the authors show the optimal pricing strategy under different payment schemes provided by the platform.
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Weifeng Li, Minghui Jiang and Wentao Zhan
The purpose of the paper is to construct a model that considers video purchase and then identifies the logical relationships implied by the parameters to explore video platform…
Abstract
Purpose
The purpose of the paper is to construct a model that considers video purchase and then identifies the logical relationships implied by the parameters to explore video platform operation mechanisms.
Design/methodology/approach
The authors analyzed the video platform system using a mathematical modeling approach and numerical optimization techniques. Through pricing decisions, the authors obtained equilibrium results for the profitability of the video platforms and analyzed the favorable market factors. The authors then extended the model by analyzing the competitive strategies of the two video platforms in the market.
Findings
The authors find that advertiser profitability, ad nuisance, video sensitivity and video creator network effects are important factors influencing the pricing strategy of video platforms. During positive market conditions, video platforms tend to lower their prices until they absorb enough users. As market conditions change, the price adjustment strategies of video platforms are affected by parameter changes and inter-parameter relationships.
Originality/value
The study considers the network effects of video creators, which provides a realistic reference for scholars and managers. In addition, the authors consider the bargaining power of platforms when purchasing content. The authors provide a fresh perspective for scholars while filling a gap in the field as video platforms can acquire a portion of the content on the market by setting a purchase price.
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Carlo Giglio, Irina Alina Popescu and Saverino Verteramo
This paper aims at understanding the differences between user profiles in collaborative consumption (CC) platforms in order to improve their management approaches and set up…
Abstract
Purpose
This paper aims at understanding the differences between user profiles in collaborative consumption (CC) platforms in order to improve their management approaches and set up customized strategies. Particularly, the authors investigate the emerging role of prosumers and their influence on the active participation and growth of CC platforms. Moreover, the authors study user experience to help promoting users' recommendation and offering intention.
Design/methodology/approach
The sample includes responses from 6,388 users of CC platforms across the EU. The data were collected through the European Commission's Flash Eurobarometer survey 467 and analyzed through a partial least squares structural equation modeling (PLS-SEM) and a fuzzy set qualitative comparative analysis (fsQCA).
Findings
The PLS-SEM findings suggest that prosumers are more likely than consumers to recommend and offer services through CC platforms. Furthermore, previous experience using platforms positively affects the switch from consumers to prosumers. The fsQCA suggests that only economic advantages affect the switchover decision.
Research limitations/implications
This study deepens the hitherto unexplored prosumer role in CC platforms and its antecedents and drivers.
Practical implications
The main limitations concern the generalizability outside of the EU, the unbalanced coverage of sectors and the number of moderator variables.
Social implications
Prosumers act as golden actors because they contribute to enlarge both the customer base (through recommendations) and the provider base (through offering intention). Hence, managers should focus on prosumers' experiences to increase the critical mass and positive externalities of CC platforms.
Originality/value
This study helps understand the importance of the role of prosumers in the growth of CC platforms. The study provides more robust results through a cross-country and mixed-method research.
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Feng Yang, Jingyi Peng and Zihao Zhang
This paper aims to explore the promotion decisions of heterogeneous sellers on a decentralized platform under competitive conditions and analyze how seller behaviors impact…
Abstract
Purpose
This paper aims to explore the promotion decisions of heterogeneous sellers on a decentralized platform under competitive conditions and analyze how seller behaviors impact platform profit, seller revenue, buyer surplus and social welfare.
Design/methodology/approach
This paper considers a Cournot model consisting of a platform charging a commission rate and two sellers with different conversion rates and browsing costs. Promotion efforts by sellers can increase traffic, but they also incur promotion costs for sellers. The sellers decide on promotion effort by weighing these two effects. The authors also explore the equilibrium when the platform charges a fixed usage fee.
Findings
The seller’s profit improves as its conversion rate increases and worsens as browsing costs increase. Also, increasing the commission rate charged by the platform makes the seller invest less in promotional efforts. Therefore, the platform must consider this trade-off to determine an optimal rate. The analysis shows that the seller with a high conversion rate and high browsing cost plays a greater role in generating more overall revenue. When the market favors such a seller, the platform tends to charge less in order not to impair its profitability.
Originality/value
This paper incorporates conversion rate, buyer’s browsing cost, unit promotion cost and the fee charged by the platform into the model to study sellers’ promotion decisions on decentralized platforms.
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Abstract
Purpose
With the development of digitalization and interconnection, there is a growing need for enterprise customers to ensure the compatibility of the third-party components they are using in the manufacturing process, thus raising the integration requirements for the Industrial Internet platform and its third-party developers. Therefore, our study investigates the optimal integration decision of the Industrial Internet platform while considering its access price, the integration cost, and the net utility derived by enterprise customers from the third-party components.
Design/methodology/approach
We model a two-sided Industrial Internet platform that connects customers on the demand side to the developers on the supply side. We then explore the integration decision of the Industrial Internet platform and its important factors by solving the optimal profit function.
Findings
First, despite the high integration cost of third-party developers, the platform still chooses to integrate when enterprise customers derive high utility from the third-party components. Second, due to the compatibility effect, charging the enterprise customers a higher price may reduce the platform profits when these customers derive low utility from the third-party components. Third, the platform profits will increase along with the integration cost of third-party developers when it is low in the case where enterprise customers derive low utility from third-party components.
Originality/value
Our findings offer insightful takeaways for the Industrial Internet platform when making integration decisions.
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Shatakshi Bourai, Rahul Arora and Neetu Yadav
The study aims to analyze factors impacting firms’ success and persistence in a digital platform competition using the structure-conduct-performance (SCP) framework. The study…
Abstract
Purpose
The study aims to analyze factors impacting firms’ success and persistence in a digital platform competition using the structure-conduct-performance (SCP) framework. The study also includes real-life cases that are beneficial to academicians and practitioners to understand and develop strategies for success and persistence during uncertainty.
Design/methodology/approach
A literature review to identify the factors that impact success and persistence in a digital platform competition was conducted following Webster and Watson (2002). Findings were integrated into a SCP framework to examine and understand the identified factors’ relational impact.
Findings
While analyzing factors under the SCP framework, all factors were divided into three categories: those impacting positively, those impacting negatively and those with ambiguous impact on the success and persistence in digital platform competition. Digital platform firms can exploit the positively impacting factors to increase market share by being distinctive from other digital platform firms and becoming dominant by withstanding competition. On the other hand, negatively impacting factors increase barriers to entry, intensify competition and reduce the distinctiveness of digital platform firms. Lastly, a few factors may have either a positive or a negative impact depending upon the particular characteristics of the firm/industry.
Research limitations/implications
The study opens the scope for future research on empirically testing the developed conceptual framework and relationships by developing propositions to posit the possible impact of these factors on digital platforms’ success and persistence.
Originality/value
The study contributed to the existing literature by using SCP framework to analyze the factors affecting firm’s success and persistence in a digital platform competition. Also, the study has discussed the relational impact of factors rather than their impact in isolation.
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Elif Ozturk, Hande Bahar Turker and V. Aslihan Nasir
Collaborating with consumers during new product development can provide companies with significant benefits and competitive advantages. Although several studies have been…
Abstract
Purpose
Collaborating with consumers during new product development can provide companies with significant benefits and competitive advantages. Although several studies have been conducted on the design of co-innovation platforms, there is still a need for a more comprehensive understanding of the co-innovation phenomenon. To address this gap, this research aims to identify the critical success factors of co-innovation platforms and provide an extensive analysis of the variables that determine their effectiveness.
Design/methodology/approach
This study presents a systematic literature review of co-innovation platforms based on an analysis of 89 articles published in 50 scholarly journals in the disciplines of information systems, marketing and business, covering the years from 2006 to 2022.
Findings
The review synthesizes the current state of scientific knowledge and groups prior studies thematically as critical success factors of co-innovation platforms. As a result, eight success factors have been identified in terms of quantity and quality of contributions. These factors include product involvement, perceived fairness, sense of community, interactive environment, employee involvement, participant diversity, assessment structure and task design.
Originality/value
The study consolidates existing research about the critical success of co-innovation platforms. It also provides a research framework that incorporates a diverse set of variables that can be used to assess co-innovation performance in future studies.
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