Abstract
In the era of the digital economy, for platform-based actors making a transition from one business field harmful for the sustainable development of society to a new field, their efficiency in value realization (EVR) has become inseparable from the digital platform used. The relationship between EVR on a platform and business transitions is a topic that has not been fully discussed, especially from the perspective of the platform service system. Also, few studies have explored transaction costs and opportunity costs using queuing theory. To fill these gaps and to inform transitions to sustainability, this paper applied a system dynamics method and proposed a framework for analyzing the relationship between EVR and the transition ratio. Findings suggest that improvements in the EVR lead to decreases in response time and may lead to an improved transition ratio. The ratio between EVR and the “entry rate” is important for predicting the transition ratio. However, preference, platform maturity, and the feedback of the transition ratio cause the effect of EVR to dynamically change. Based on this mechanism, the government can take incentive measures to maintain an acceptable transition ratio. For the power industry, the case simulated for this study, the transition can be improved by effectively transmitting a phasing-out policy for platforms and actors, and by guiding power exchange platforms to set reasonable rules, service levels, and growth rates.
Highlights
The sustainability transition (ST), such as the transition from fossil energy power generation to renewable energy power generation, is an important topic for sustainable development
Based on the research agenda advanced by Kolk and Ciulli (2020) and theories about platform preference and maturity, this study focused on the dynamic mechanism between efficiency in value realization (EVR) on platform and transition ratio, considering the influence from value preference and platform maturity
This study explored the mechanisms associated with EVR, timevarying costs, actors’ resource allocation, and the transition ratio
Summary
The sustainability transition (ST), such as the transition from fossil energy power generation to renewable energy power generation, is an important topic for sustainable development. Ranking and scoring, which are directly affected by the platform, influence the velocity of participants’ transactions. In these examples, as the platform can accelerate the velocity of transactions, actors can obtain profits from transactions at a higher speed. The input resource can generate a faster increase in value This leads to changes in an actor’s investment in different business fields and can impact the state of the actor’s transition. In this process, transaction velocity is closely related to the core concept of the “efficiency of value realization” (EVR3)
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