User-Perceived Value and Network Effects: A Study about Environment-Oriented Business Platforms

Abstract

The emergence of business platforms has been motivated by cost reduction of data processing combined with the diffusion of the internet and mobile technology. Due to the potential to generate network effects, this technological improvement associated with sustainability goals became a key driver for business model innovation. While the literature about network effects addresses the concept of value only superficially, studies about customer-perceived value in digital economies are inconclusive. Overall, how these research fields relate to each other remains unclear. Therefore, the study presented in this article focused on the interface of the literature about business platforms, network effects, and customer- perceived value, in an environmental sustainability scenario, with particular attention to the impacts of food waste. The research addressed the following question: When do business platforms directly contribute to environmental sustainability in B2B markets? Based on multiple case studies of Brazilian platforms, the results allowed us to formulate three propositions about the contribution of business platforms to environmental sustainability in the B2B market (called environment-oriented business platforms or eco-platforms). First, eco-platforms mediate transactions to reduce market friction and environmental impacts. Second, eco-platforms offer strategic and economic benefits to business users. Third, business platforms and eco-platforms stimulate positive network effects when benefits perceived by buyers and suppliers are higher than sacrifices. The findings provide evidence for platform owners to attract and retain buyers and suppliers due to the stimulus of certain benefits and minimization of sacrifices.