Managing the User Crowds: An Effectual Approach of Business Model Innovation and Platform Envelopment for Co-Creation on a New Multi-Sided Platform Firm

Abstract

The growth of Internet firms these days starts to catch the strategic management scholar attention. However, the study about how Internet platform achieves their performance with their unique business model is very limited. This research wants to fill this gap by platform envelopment attack typology to explain the strategic fit of business model innovation typology and envelopment attack typology. Finally, we proposed the same proposition as follows: Closed Proactive BMI Typology will lead to Complementary Envelopment Attacks Typology, Open Reactive BMI Typology will lead to Functional Unrelated envelopment attacks typology, and Open Proactive BMI Typology will lead to Weak Substitute envelopment attacks typology. Furthermore, economies of scope and user base overlap play a significant role in determining platform envelopment performance.