Governance of Sharing Economy Organizations: Exploring Social Bonding and Economic Transaction

Abstract

The sharing economy is constituted through a hybrid form of governance, combining the development of social bonding and economic transaction. Based on an understanding that enabling ideal social relations between individuals forms the core of sharing economy governance, this paper conceptually explores how the governance of sharing business models varies in terms of their dependence on developing social bonding and facilitating economic transaction, and how organizations strike a balance between the two mechanisms. A framework is presented that conceptualizes the variation between social bonding development and economic transaction facilitation. The framework offers a fine-grained explanation of the way in which sharing economy business models differ in terms of striking a balance between the relational association of sharing and the transactional association of economy. It provides a deeper understanding on the governance potential and tension of the hybrid intermediary organizations in an era of digitalization and complexity.