The difference that the institutional environment makes: Leveraging coordination to balance platform dominance, mutuality and autonomy in geographically fragmented hospitality labour markets

Abstract

It has been argued that digital platform firms leverage their position at spatial bottlenecks in such a fashion so as to allow operations in local labour markets while at the same time insulating themselves from the regulatory provisions that govern those local markets. This is not necessarily a stable condition, but as long as platform firms exert power, they may shift the social relationships that platforms embody in their favour: domination trumps mutuality and autonomy. However, this does not have to be so. Depending on the context, opportunities for breaking out of this mould exist. Specifically, we focus on the institutional context provided by coordinated market economies to argue that, depending on pre-existing forms of cooperation, platforms can be designed and applied in a manner that enables the building and maintenance of trust through an emphasis on mutuality and autonomy rather than inevitably drifting towards the pole of domination. Using the example of the hospitality industry and focusing on training and certification in geographically fragmented labour markets, we set out to explore the possible role of the institutional setting in shaping platform use as recruitment needs are to be resolved.