B2B service sales on a digital multi-sided platform: Transformation from value chains to value networks

Abstract

Business-to-business (B2B) service suppliers mobilize a platform approach to enhance their competitive advantage, service selling, and long-term relationships. These emerging platforms in established value chains have been insufficiently studied on a strategic level, especially regarding value orchestration. The aim of this article is to examine how digital multi-sided platforms (DMSPs) change platform owners' value chains toward joint value creation from a sales approach, including sales strategy, sales structure, and customer relationships. Our longitudinal multiple case study was conducted on four platform owners adopting a DMSP as part of their service selling. The findings show how the transition from value chain toward value orchestration in a network shifts the platform owner's focus to develop a common sales strategy with strategic network actors. The restructuring of sales with platform resources allows platform owners to manage larger networks with fewer resources and utilize enhanced interaction to create commitment in network relationships. We put forward three propositions and a framework to illustrate the interdependence of the value chain changes under examination. Additionally, this study offers various managerial implications for companies when utilizing platforms and provides avenues for further research.