Three layers of abstraction: a conceptual framework for theorizing digital multi-sided platforms

Martin Poniatowski,Daniel Beverungen,Dennis Kundisch,Hedda Lüttenberg

doi:10.1007/s10257-021-00513-8

Martin Poniatowski, Daniel Beverungen + Show 2 more

Open Access

https://doi.org/10.1007/s10257-021-00513-8

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Abstract

The digital economy has brought about multi-sided platforms as superior configurations for value co-creation. However, the academic discourse on platforms is scattered across academic disciplines—including management, information systems, and economics. Based on a systematic literature review of 140 papers from nine disciplines, we inductively develop a framework that provides a conceptual point of reference for conducting boundary-spanning research on digital multi-sided platforms. Systematizing the identified concepts, we introduce three layers of abstraction: conceptualizing platforms as information systems, as systems for actor engagement, or as ecosystems. Our framework conceptualizes digital multi-sided platforms as nested hierarchies of systems that are shaped by, and in interaction with, their environment. This view focuses on designing IT artifacts, governance mechanisms, and strategies for platforms in terms of how they interact with their environment. Practitioners can use our insights to analyze, design, and manage platforms aimed at establishing a sustainable competitive advantage.

Highlights

Driven by digitalization, the competitive environment of digital platforms has changed substantially over recent years, and their importance and relevance has grown ever since
Conventional market dynamics have been fundamentally disrupted by the ubiquity of platforms, their rapidly evolving and growing variety, and the new roles and business models they have helped to create (e.g., Parker and Van Alstyne 2018; Tiwana 2015a, b)
Internal Factors and Environmental Dynamics emerged as two disjointed classes of concepts from our literature review, which is in line with the findings of Tiwana

Summary

Introduction

The competitive environment of digital platforms has changed substantially over recent years, and their importance and relevance has grown ever since. New forms of digitally enabled interactions and information exchanges have given rise to innovative and disruptive platform-based business models. Digital multi-sided platforms are enabling different groups of participants to exchange information, goods, and social content, and to create new services, business models and markets (Eisenmann et al 2006; Parker and Van Alstyne 2012). Used across different branches (e.g., industry, tourism, and e-commerce), platform-based offerings encompass a diverse range of digital services (e.g., AXOOM, 365FarmNet), applications (e.g., Google Play Store, Microsoft Store), shared commodities (e.g., Uber, Airbnb), social media (e.g., Facebook, YouTube), and products (e.g., Amazon, Alibaba). Conventional market dynamics have been fundamentally disrupted by the ubiquity of platforms, their rapidly evolving and growing variety, and the new roles and business models they have helped to create (e.g., Parker and Van Alstyne 2018; Tiwana 2015a, b)

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