The (un)intended consequences of multi-sided platform adoption for different actors in business networks

Abstract

Multi-sided platforms (MSPs) are digital platforms that connect two or more actor groups and are increasingly used in business-to-business (B2B) markets. While the prior research has shown that MSP adoption changes network dynamics, most of the extant studies tend to focus on the consequences for lead firms who orchestrate MSPs, offering fewer insights into the consequences for other actors in business networks. Addressing that gap, this study examines how alternative MSP adoption strategies can lead to different consequences for actors in different network roles. We derive empirical insights from an embedded single-case study centered on a specific business network in the Australian residential building industry, including 25 interviews with different network actors and a rich source of secondary data. Our findings reveal three network management-driven MSP adoption strategies (network shaping, network optimization, network expansion), and illustrate the intentional and unintentional consequences each strategy creates for different network actors, depending on their role. We show that the consequences of MSP adoption are not always positive for all network actors but can also be detrimental and negative. This study advances the contemporary MSP literature by analyzing different MSP adoption strategies and providing a holistic multi-actor account of the implications of MSP adoption for different actors in business networks. For managers, this study provides insights into how to use MSPs to manage their business networks.