Platform-provider relationship dynamics in the sharing economy: Challenges and implications

Abstract

The implications of the sharing economy for its providers have raised many concerns, against the backdrop of reported challenges in platform-provider relations. Even though the sharing economy market continues growing and such challenges become more pressing, the providers' perspective on work at platforms has not received the necessary attention. Given the gaps, the study aimed a) to explore the challenges in platform-provider relations, and b) to investigate the provider's perspective on platforms' responses to negative incidents in such relations. Using 510 responses from ridesharing providers, the structural equation modelling analysis of the challenges in relations showed that perceived information asymmetry, uncertain working conditions and relational opportunism predict dissatisfaction with platforms and a subsequent feeling of job insecurity. Latent class analysis based on the providers' perceptions of platforms' responses to negative work incidents resulted in three clusters of respondents. Those clusters had a significant variance in the perception of proactive, passive and defensive responses, and the job satisfaction level following the implementation of those responses. These findings contribute to the literature on stakeholder relations in the sharing economy and the organisational/psychological climate by extending knowledge about platform-provider relationship dynamics in digitally-mediated work environments. Managerial implications are also discussed in the paper.