Abstract
Many digital platforms implement feedback mechanisms as a means to control the behavior of their users. However, there is a lack of theoretical explanation regarding the interrelation between design characteristics of feedback mechanisms and their effects. In this study, we interpret feedback mechanisms as a specific type of management control to propose properties as a new theoretical perspective on this problem. Our exploratory study has two objectives. First, we analyze how digital platforms design their feedback mechanisms. Second, we examine to what extent feedback mechanisms comply with standards given in the management control literature for our newly introduced properties. Analyzing the 102 most widely used platforms in Germany, we find dominant patterns in nearly all design characteristics (e.g., query method, submission category and scale level). Furthermore, we find mixed compliance of feedback mechanisms with our introduced properties (e.g., low precision but high sensitivity and verifiability). For a deeper understanding of these results, especially the reasons for the design choices, we conduct 14 semi-structured expert interviews. We find simplicity and inspiration from other platforms to be dominant drivers for design choices.
Highlights
In recent years, there has been growing interest in digital platforms in research as well as in practice
Our analysis shows to what extent existing feedback mechanisms comply with the properties of management control systems
The remainder of this paper is organized as follows: Based on the design characteristics of feedback mechanisms and the standards given in the management control literature, we develop a framework for designing feedback mechanisms in Sect
Summary
There has been growing interest in digital platforms in research as well as in practice. Driven by the fact that some of the highest-valued companies (e.g., Apple and Amazon), have implemented successful platforms, many others have been following these examples (Evans and Schmalensee 2016; Parker et al 2016) Digital platforms such as marketplaces, social media platforms, and Internet-of-Things platforms represent “a new business model that uses technology to connect people, organisations, and resources in an interactive ecosystem in which amazing amounts of value can be created and exchanged” (Parker et al 2016). Customers can buy products either in the form of an auction or at a fixed price (Cabral and Hortaçsu 2010) After the transaction, both the buyer and the seller can provide feedback. As is usual in the context of platforms, we consider users to be both buyers and sellers
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