Platform Business Model Research Articles

Pivoting B2B Platform Business Models: From Platform Experimentation to Multi-Platform Integration to Ecosystem Envelopment

The landscape of digital servitization in the manufacturing sector is evolving, marked by a strategic shift from traditional product-centric to platform business models (BMs). Manufacturing firms often employ a blend of approaches to develop business-to-business (B2B) platforms, leading to significant reconfigurations in their BMs. However, manufacturing firms frequently encounter failures in their B2B platform development initiatives, leading them to abandon the initial efforts and/or pivot to alternative platform strategies. Therefore, this study, through an in-depth case study of a leading wind turbine manufacturer, articulates a three-phase pivoting framework for B2B platform BMs with corresponding platform development and strategic orientation. Initially, a manufacturer focused on asset-based product sales, supplemented by asset maintenance services, follows an emergent platformization strategy, characterized by the rise of multiple, independent B2B platforms catering to diverse functions. Next, focusing on the imposed customer journey strategy, the firm shifts towards an imposed and strategic multi-platform integration into an all-encompassing platform supported by artificial intelligence (AI), signaling a maturation of the platform BM to combine the wide range services into an energy-performance-based contract. Finally, the last step of the firm’s platform BM evolution consists of a deliberate open platform strategy to external stakeholders and enveloping its offerings in a broader platform ecosystem. The study showcases advanced AI applications that process wind farm, wind turbine, and blade data, signifying a transformative leap toward value capture via platform ecosystem. The paper advances B2B platform BMs and digital servitization literature, highlighting a progressive approach's efficacy and strategic pivoting.

Business model structuration in Industry 4.0: an analysis of the value-based strategies of smart service providers in Brazil

PurposeThis study examines the use of a dynamic value-based approach to analyze the business model structuration of smart service providers in Brazil, mapping their value creation, configuration and appropriation strategies, and determining how well-defined their current business models are.Design/methodology/approachThis is a qualitative study based on semi-structured interviews with entrepreneurs (or CEOs and directors of technology) of seven business ventures in three different phases of business model structuration: (1) academic: companies or innovation and research centers linked to universities; (2) startups: technology-based companies originating from the technological needs of clients, be they new branches of the traditional business of incumbents or new entrants and (3) autonomous service providers whose offerings are related to master’s or doctoral projects.FindingsWe propose a typology of business model structuration with four stages. At first (individual or initial business model), albeit with high skilling of owners, only manual or adaptation services are offered. In the second stage (platform business model), although services offered are oriented toward the entire process automatization of the client (Factory integrated), technologies are restricted to the client company (or even one department) and these clients' needs are mainly data processing and connectivity. In the third stage (scaling digital business model), although the services offered are oriented toward greater digitalization through an entire array of field devices connected to the internet (IoT) and organized in a more formalized structure, the business model is still being constructed, companies in this stage are mainly startups. In the fourth stage (innovation ecosystem business model), the entire manufacturing process is digitized, with integration and network connectivity, both between service providers and the extended supply chain of their clients, and new technologies are customized and developed through the interaction of a whole innovation ecosystem.Research limitations/implicationsMapping value-based strategies aids in understanding business model structuration in Industry 4.0. Future research should focus on parameterizing the dimensions founded of each value strategy.Originality/valueThis study advances the comprehension of the business model in |Industry 4.0 by providing a value-based strategy perspective of business model structuration. Practically, by focusing on smart service providers, it contributes to a greater understanding of smart service providers in Brazil and their strategic challenges.

The use of digital technologies for crisis management

Aim. To identify the role of digital technologies in the context of crisis management and the opportunities that digital tools provide for the development and growth of companies, even in the face of economic turmoil. To pay special attention to the study of effective practices of optimization and modernization of business processes using the latest digital tools, which con[1]tribute not only to increasing productivity and efficiency of business, but also its adaptation to rapidly changing market conditions.Objectives. To analyze the role of digital technologies in the context of crisis management, highlighting the opportunities that digital tools offer for the development and growth of companies, even in conditions of economic turmoil; to study the advantages of applying new business models using modern digital technologies; to consider the principle of operation of platform business models using examples and show the advantages of their use; to evaluate the financial performance of companies.Methods. The author applied the methods of complex and comparative analysis, as well as the study of foreign and domestic experience of digital transformation in crisis conditions. Considerable attention was paid to the work with periodicals, scientific articles and analytical reports in the field of crisis management and digitalization. In addition, methods of observation, generalization and comparison were used.Results. The study suggests that digital technologies contribute to improving the transparency and efficiency of business processes in crisis conditions. The main factors of successful digital transformation of organizations were identified and recommendations for their use were developed.Conclusions. According to the author’s position, the necessity of active use of innovative technologies in crisis management, as well as the importance of a strategic approach to digital transformation in a rapidly changing environment are obvious. The key element of successful crisis management is the active integration of digital technologies into business processes and the use of a strategic approach to digital transformation. Cultural and organizational aspects that ensure sufficient funding and management support are recognized as important factors. The use of online platforms allows organizations to effectively form a digital ecosystem, increasing competitiveness, which ultimately contributes to the successful achievement of business goals in a rapidly changing digital environment. The application of the proposed recommendations on the use of innovative technologies will help organizations not only to cope with the current crises, but will also contribute to their sustainable development and stabilization.

Non-profit and hybrid organizations as multi-sided platforms: insights from the analysis of sustainability models

PurposeThis study investigates the sustainability models of non-profit and hybrid organizations, which aim to balance economic, social and environmental objectives. The research introduces the Sustainability Model Canvas to analyze these organizations and identify common patterns, unique characteristics and managerial insights to balance the triple bottom line.Design/methodology/approachThe research utilizes the Sustainability Model Canvas to examine the sustainability models of 200 non-profit and hybrid organizations. Data were collected from secondary sources, including articles, reports and websites. The analysis was conducted using the activity system theoretical framework, which helped to identify design elements and themes within the business models of the studied organizations.FindingsThe study reveals four primary sustainability model patterns: donated income, earned income, public income and auto-generated income. An additional mixed approach pattern is identified, combining elements from the four primary patterns. The research highlights the parallels between these sustainability models and multi-sided platform business models, offering managerial suggestions for leveraging these patterns to achieve sustainability.Research limitations/implicationsThe study is based on secondary data, which may limit the depth of insights compared to primary data collection. At the same time, the chance to consider hybrid organization through multi-sided platform lenses provides relevant contributions to both the literature streams.Practical implicationsThe identified sustainability model patterns and managerial suggestions can serve as blueprints for non-profit and hybrid organizations aiming to design or innovate their sustainability models. The Sustainability Model Canvas offers a practical tool for organizations to visualize and balance their triple bottom line objectives.Social implicationsThe research underscores the importance of integrating social and environmental considerations into business models, promoting a holistic approach to sustainability that can lead to broader social and environmental benefits.Originality/valueThis research contributes to the business model literature by extending the focus beyond traditional profit-oriented organizations to include non-profit and hybrid organizations. The introduction of the Sustainability Model Canvas provides a new tool for designing and analyzing sustainability-oriented business models. The study also suggests considering sustainability models as multi-sided platforms, offering new insights for both academic and practical applications.

Image-based sexual violence and imperfect victims: the case for platform cooperativism in the online sex industry

ABSTRACT There is growing need for greater empirical understanding of the data violence experienced by online sex workers. Popular discourse about image-based sexual violence (IBSV), or ‘revenge porn’, often fails to identify the widespread proliferation of this practice within sexual services. This occurs as both consumers and adult-services platforms surreptitiously record and post performances on porn sites without consent, which can have severe implications for workers’ mental and social well-being. First, I apply a workerist lens to the neoliberal sexual agenda, which governs the (in)visibility and (un)freedom of online performers (OPs) across a variety of institutional settings. This exposes how top-down ideological power relations disappears OPs from legislative approaches to IBSV. Second, I show how IBSV emulates the tendencies of the platform business model, such as data appropriation and surveillance. I conclude with solutions including protections based in technology and human rights law, alongside platform cooperative development within a wider decriminalization framework.

Research on the Innovative Practices of Tourism Platform in Web3.0 - Taking Ctrip Trekki NFT Project as an Example

Against the background of the rapid evolution of the current Web3.0 technology paradigm, blockchain technology is gradually penetrating into the core of the tourism industry, heralding a disruptive industry transformation. This paper focuses on the Trekki NFT project launched by Ctrip as a reference to explore in depth the innovative application of Web3.0 technology in tourism service platforms and the deep-rooted value it implies. This paper firstly elaborates the core concept and key technical architecture of Web3.0, as well as the theoretical connotation and practical boundaries of non-homogenized tokens (NFT). Through a panoramic analysis of the Trekki NFT project, the paper reveals how Web 3.0 technology can stimulate the restructuring of business models of travel platforms, optimize the quality of user experience, and explore new opportunities for industry growth. In particular, the study demonstrates the strategic significance of Web 3.0 technologies in promoting the innovative development and industrial upgrading of the tourism industry. The discussion section of the study has refined a set of strategic frameworks and action recommendations for the deep integration of tourism platforms and Web 3.0 technologies, aiming at guiding and accelerating the technology adoption and progress of the tourism industry in the wave of the digital economy in the future.

A taxonomy of business models of digital care platforms in Spain

AbstractIn the last few years, the proliferation of digital labour platforms has led to the transformation of business models and labour relations in an increasing number of economic activities, including highly feminized and informal traditional sectors, such as care and domestic work. Drawing on an analysis of 37 digital care platforms in Spain, this research compares the distinctive features and structural power dynamics they engender, and it constructs a taxonomy of business models of these care platforms. By analysing the main features of their operational models, we are capable of distinguishing three main types of platforms: marketplace, on‐demand, and digital placement agencies. First, the paper argues that the distinctive features of each digital platform business model have differentiated impacts on working conditions in terms of access to tasks, remuneration, flexibility and means of control. This differentiation allows us to understand what is transformative and what is continuous in platforms' precarization or formalisation of care work and working conditions of carers, mainly women and migrants. Each business model has its differentiated outcomes in terms of labour control and reorganization of women's and migrants' reproductive work. Second, more broadly, while digital care platforms may have contributed to facilitating workers' access to jobs, reducing transaction costs and standardising processes, this has often been through the creation of more flexible and insecure forms of work and to increased market pressures. Therefore, this study contributes to existing research addressing the degree of formalization of labour relations in digital platform work through a nuanced analysis of their business models.

Bridging the Green Gap in Homesharing: How Platforms Can Increase Hosts’ Sustainability Intentions and Behavior

Homesharing platforms are under substantive pressure to become more environmentally sustainable. Key to this challenge is these platforms’ homesharing hosts, who have the opportunity to introduce new sustainability innovations (e.g., water-saving measures). However, knowledge of what drives hosts’ sustainability behavior is currently limited. We address this gap and investigate antecedents for hosts’ sustainability intentions. Our study is based on a survey in Europe (conducted in 12 languages), resulting in a sample of 1,392 hosts. Building on the theory of planned behavior, we perform three analyses: (a) quantitative and theory testing, (b) quantitative and explorative, and (c) qualitative and explorative. Notably, we find that attitude and norms, as well as financial resources and time, are the main drivers of hosts’ sustainability intentions. In addition, the presence of local service offices (i.e., a platform business model that internalizes service operations from hosts) moderates the effects of sustainability antecedents.

Mapping the landscape: unveiling the structural dynamics of industry platforms

Purpose The proliferation of industry platforms has disrupted several industries. Firms adopting a platform business model have experienced a substantial expansion in size and scale, positioning themselves as the foremost valuable entities in market capitalization. Over the past two decades, there has been a substantial expansion in the body of literature dedicated to platforms, and different streams of research have emerged. Despite considerable efforts and the significant progress made in recent years toward a comprehensive understanding of industry platforms, there is still room for further harnessing the field’s diversity. As a result, the aim of this article is to examine the field’s structure, identify research concerns and provide suggestions for future research, thereby enhancing the overall understanding of industry platforms.Design/methodology/approach We conducted a thorough examination of 458 articles on the topic using bibliometric methods and systematic review techniques.Findings Through co-citation analysis, we identified five distinct clusters rooted in various bodies of literature: two-sided markets, industry platforms, digital platforms, innovation platforms and two-sided networks. Furthermore, the examination of these five clusters has revealed three key areas that demand further consideration: (1) terminologies, (2) classifications and (3) perspectives.Originality/value While previous reviews have provided valuable insights into the topic of industry platforms, none have explored the structure of the field so far. Consequently, as a first step toward advancing the field, we uncover the structure of the literature, identifying three major areas of concern. By addressing these concerns, our goal is to converge different clusters, thereby harnessing the diversity in the field and enhancing the overall understanding of industry platforms.

Business models of multisided platforms for in-destination tours and activities: a morphological analysis approach

ABSTRACT In-destination tours and activities multisided platforms (T&A MSP) are growing ventures at the forefront of digitalizing tour and activity sector. While these platforms are transforming this sector, understanding of their business models and how they create, deliver and capture value is limited. To address this gap, we developed a morphological matrix to facilitate alternative business model exploration and discovery. Derived from three iterations, this matrix visually represents and describes the characteristics of T&A MSP business models. Utilizing this tool, T&A MSP can evaluate and make transformative adjustments to their business models, thereby enhancing performance, adapting to evolving tourists’ preferences and generating greater value.

A typology of evaluative health platforms: Commercial interests and their implications for patient voice

Interactions in the healthcare system today involve an important new set of actors: evaluative health platforms (EHPs). These platforms are not neutral intermediaries, but active moderators of how patients express opinions, choose providers, and consume health-related information. This paper adds to our understanding of the varied and evolving commercial interests of EHPs and the implications these have for patient voice. We analyze 71 platforms in the USA, UK, and Germany and identify five ideal types: subscribers, analyzers, advertisers, regulators, and scammers. Each platform type enacts a unique competitive strategy through an evaluative infrastructure which constrains but also generates possibilities for patient voice. Based on our typology, we develop three contributions. First, we nuance universalizing claims about the consequences of platform capitalism by specifying the diverse strategies underpinning competition between EHPs in different countries, and showing how each strategy leads evaluative infrastructures to develop in ways that impact patient voice. Second, we show how patients can navigate the challenges of a complex EHP space by exercising their ability to choose between platforms. Finally, we outline the conditions platforms need to fulfil to become empowering. Overall, this study highlights the varied and complex relationship between platform business models and user voice, which exists not only in healthcare, but also in many other fields.

Intertemporal Price Competition in the Two-Sided Market: Reexamining the Seesaw Principle for Startup Platforms

Pricing represents a crucial element in the platform business model search, particularly for startups that face the “cold-start” problem in launching a two-sided marketplace. In a static setting, the literature recommends the “seesaw principle” (i.e., charging a relatively low price, even subsidizing, on the one side and a high price on the other) as the solution. However, little is known about whether the seesaw principle still works in a dynamic setting and how it is influenced by intertemporal factors such as retention capabilities and early period financial pressure. This paper develops a game-theoretic model to examine optimal pricing strategies in a multiperiod setting. We first show that, in the symmetric scenario, the adjustment to the seesaw principle (i.e., the difference between the single- and multiperiod price gaps) increases with the platforms’ retention rate. This insight holds true in the asymmetric case where a startup platform faces greater early period financial pressure than an established competitor. Interestingly, the startup platform should charge a higher price to the less profitable side to differentiate itself and avoid a price war. We also explore the robustness of these insights by considering an endogenous, price-sensitive retention rate.

The platform business model selection of online ride-hailing giants based on the aggregation model

Pure self-management model, pure aggregation business model and Self-support + aggregation model are three commonly used business modes on ride-hailing platforms. We use an analytical model to study these three business models and give the optimal business model decision of the platform. The research shows that the heterogeneity ratio of drivers, the cost of the platform under the Self-support model, the franchise fee received by the platform under the aggregation model and the dissatisfaction of the original users on the platform play a key role in the selection of the platform’s business model. When the difference between the franchise fee under the aggregation mode and the platform cost under the Self-support mode fails to generate positive feedback on the platform profit, the platform should choose the pure Self-support mode. When riders are more sensitive to the heterogeneity of service quality of the platform and user stickiness can be ensured, the platform should choose the pure aggregation business model. When user stickiness can be guaranteed and the cost of the platform under the self-run model is controllable, the platform should choose the Self-support + aggregation business model.

Pengembangan Paltform Layanan Konsultasi Kecantikan Online Untuk Meningkatkan Industri Ekonomi Digital Kreatif di Indonesia

The platform business model is a simple yet powerful concept that radically alters business, the financial system, and society in general. The platform revolution threatens almost all industries that rely heavily on information. This concept evolved into a view of the interdependence of innovation and technological advancement, which influences both macro and microeconomics. whomever decides how far digital technology can travel. The MBKM initiative exists to strengthen the creative digital economy in Indonesia, and one of the outcomes of this study was the creation of an online beauty consultation service platform.

Computer security technology in E-commerce platform business model construction

The global e-commerce market is expanding rapidly as the big data era advances and the e-commerce industry thrives. This paper aims to discuss the application of computer security technology in constructing an e-commerce platform business model. The research aims to find effective security technology solutions to strengthen the security of e-commerce platforms, protect user information and rights, and enhance the sustainable development of business models. Big Data-assisted E-Commerce Business Model (BD-ECBM) construction is discussed to overcome the e-commerce platform issues and positively impact marketing strategy decision-makers by raising their level of awareness. The business decision-making process is a series of steps that help businesses overcome obstacles by collecting relevant data, analyzing all relevant alternatives, and settling on a course of action. Big data analytics can improve business management with data fusion technology in many ways. The system's framework of the information service layer, the application-level layer, and the client session layer was developed using the Business model paradigm for accounting for e-past, commerce's capabilities of the platform, and an analysis of supply and demand. It can monitor its rivals in near real-time, adjusting prices, offering more attractive deals, and analyzing negative customer comments to see if it can outperform its rivals. The trial results demonstrate the effectiveness of this method of making marketing decisions and formulating a strategy. Hence, the BD-ECBM technique improves customers' overall satisfaction and experience with the brand while raising the latter's profile.

Platform business models and strategic price interaction

Business platforms delivering Mobility-as-a-Service (MaaS), alongside providing additional user services, have been shown to bring important price strategic interaction impacts which can be welfare improving. We show that the Integrator platform, whose structure alleviates harmful price externalities with two operators, such that it everywhere welfare dominates the Free-Market, can also limit beneficial competitive forces with more operators, reversing this welfare ordering. This is important since MaaS envisages platforms bringing together multiple operators and services in practice. However, calibrations show that where the Integrator platform fails to outperform the Free-Market (with higher operator numbers and lower substitutability), a new platform-based model that we introduce, is optimal. Furthermore, the Integrator is promoted in welfare terms in the presence of non-trivial marginal costs and mid- to high-end market demand elasticities, conditions both consistent with the inclusion in the MaaS journey mix of taxi cabs and other on-demand services which are common-place in MaaS offerings. We also introduce a number of extensions to the modelling framework incorporating additional real network characteristics. Though this can result in the welfare supremacy of the Integrator relative to the Free-Market being undermined, it again tends to be restored under mid- to high-range market elasticity calibrations. Finally, profit incentives tend to neither align across platform providers and operators, nor promote the welfare-best regime, indicating potential for regulatory oversight.

Optimal two‐period pricing decisions and value‐added service strategies of two‐sided platform considering suppliers entry timing

AbstractThe flourishing platform business model has been rapidly integrated into manufacturing industries, and value‐added service (VAS) provided by the platforms has become a critical part of enhancing competitiveness. This study investigates the optimal two‐period pricing decisions and VAS strategies of the two‐sided platform for manufacturing. For both the supplier and manufacturer side, the platform decides the entry fees in each period and provides differentiated quality of basic services, as well as the VAS (if any). Moreover, the manufacturer's utility of accessing is influenced by the cross‐network externality, which is related to the number of suppliers in each period. In the presence of the supplier's varying entry timing, three VAS strategies are available for the platform including: (1) VAS for suppliers in Period 1 (Model S1), (2) VAS for suppliers in Period 2 (Model S2), and (3) VAS for manufacturers in Period 1 or 2 (Model M). We establish a two‐period game model under each VAS strategy. Then, the optimal platform's pricing decisions are derived, and the optimal performances in three VAS strategies are compared. Findings demonstrate that when the cross‐network externality strength is large, the platform always prefers Model S1; only when both the cross‐network externality strength and quality of the platform's basic service are comparatively low, the platform selects Model S2; otherwise, the platform chooses Model M. This study also extends to the scenario that the platform provides bilateral VAS in Period 1 (Model B1) or Period 2 (Model B2). Notably, the platform is not always willing to offer bilateral VAS, especially when the VAS cost coefficient is relatively high.

Business Model Innovation for Ambulance Systems in Low- and Middle-Income Countries: “Coordination and Competition”

Several low- and middle-income countries’ emergency transportation systems (ETSs) do not have a centralized emergency number. Instead, they have many independent ambulance providers, each with a small number of ambulances. As a result, ETSs in these contexts lack coordination and ambulances. Using a free-entry equilibrium model, we show that in such decentralized systems, the probability that any given call can be served by at least one ambulance, that is, its coverage, is at most 71.54%, regardless of the ETS’s profitability. We examine three business models that can address the ETS’s lack of coordination and ambulances: (i) a competitor-only business model, where an entrepreneur enters the ETS and acquires ambulances to compete with existing providers; (ii) a platform business model, where an entrepreneur coordinates existing providers; and (iii) an innovative platform-plus business model, where an entrepreneur combines (i) and (ii): setting-up a platform and acquiring platform-owned ambulances. We also examine a government-run platform that takes no commissions from providers. Using a game-theoretic approach, we find that it is optimal for all platform models to incentivize all providers to join. However, only the government-run platform may incentivize providers to acquire additional ambulances. Furthermore, a government-run platform offers higher coverage than a platform-plus only when the platform’s power to coordinate ambulance providers is moderate. Our results can help entrepreneurs and policymakers in LMICs navigate various tradeoffs in improving their countries’ ETS.

Scaling circular economy business models: A capability perspective

AbstractIn a context of growing environmental challenges, circular economy (CE) business models appear necessary for business to contribute positively to the ecological transition. While platform business models have been identified as a new and promising model in CE, we still lack a fine‐grained understanding of the critical capabilities involved in developing and scaling them. To fill this gap, we build on a single case study of Phenix, a French‐based fast‐growing start‐up in the food industry, tackling the issue of food waste. We identify three core managerial capabilities involved in the successful scaling of Phenix's business model. In addition to ecosystem orchestration capabilities, we identify two types of ambidextrous capabilities – forms of ambidexterity operating both at the organizational and at the institutional level. Our analysis highlights the importance of considering these capabilities in a bundle as they collectively contribute to the performance and scaling potential of the business model. We also call for an increased consideration of the role of institutional factors in shaping opportunities to design and scale profitable business models.

Innovation of Business Models in the Digital Era: A Case Study of the New Generation Digital Platform of the Information Network

Business model innovation in the digital age is an important exploration carried out by various industries to adapt to market demand, driven by the trend of digitization. This paper takes the new generation digital platform of the Information Network as a case study to deeply study its business model innovation practice and its position in the digital era business model innovation. By analyzing the development history, core structure, functions, and user and market impact of the platform, the unique value of the platform in business model innovation has been revealed. At the same time, a detailed analysis of the evolution of information network business models, core value chains, profit models, and competitive strategies comprehensively presents the diversity and innovation of information network digital platform business models. In practice, the impact of e-commerce, sharing economy, mobile payments, and financial technology on business model innovation was explored, highlighting the diversified paths of business innovation in the digital age. Finally, through in-depth analysis of innovative strategies such as customer value, data-driven decision-making, and multi-channel integration, insights are provided for future business model innovation in the digital age.