Digital Platform Business Research Articles

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.

When manufacturers turn into digital platform providers: A transformation model to understand the platformization pathway

Platformization has arrived in manufacturing. However, to enter the digital platform business manufacturers need to make a fundamental shift from product thinking to platform thinking. To master this shift, firms have to take the platformization pathway, which describes the process when manufacturers turn into digital platform providers. However, little is known about platformization on the firm level from a transformation perspective. Our study attempts to close this gap and develops a transformation model that frames the platformization pathway when established manufacturers become platform leaders. For this purpose, we adopt the concept of ambidexterity and develop a theoretical framework to conceptualize and investigate the transformation process as a result of sequential transitions and balancing between explorative and exploitative activities. Moreover, we use interviews from 29 large manufacturers and conduct an inductive case study analysis to identify the different stages, the contextual factors and the dynamics of transformation. By combining the theoretical framework and the results of our case study analysis, we develop a formal transformation model that contributes to understanding the manufacturers' platformization pathway. Our results also aim to support manufacturers in designing their strategies so they can turn into leading digital platform providers.

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.

Characterization of the key distinguishing features of a digital platform as a business model

The purpose of the study is to identify the most characteristic features of the business model of the digital platform and further compare them with the empirical experience gained in the analysis of the Yandex.Market company. The objectives of the study include determining the main characteristics of the digital platform as a business model, analyzing Yandex.Market, its core business, competitive advantages, and environment, as well as identifying the correspondence between the company's business model and previously established key features of the digital platform and analyzing the advantages that participants receive from interacting with the platform. The object of the study is the main factors of change and further business development under the influence of digital transformation. The subject of the study is the key features of the digital platform's business model in the Russian market, using the example of Yandex.Market. To achieve the goals of the research, theoretical methods such as literature analysis, studying interviews with business experts, synthesizing new knowledge based on them, conducting modeling, and empirical methods such as the method of expert assessments, experiment and observation of the company's activities. The importance of using digital technologies are now recognized by all participants in both the business and scientific community. This contributes to the emergence of a large number of studies devoted to this topic. So this work is aimed at identifying those features that are inherent in one of the most effective business models of our time, namely the digital platform. Considering the experience of Yandex.Market makes the work especially relevant for Russia. The scientific novelty of the work consists in identifying unique features inherent only in the business model of a digital platform using the example of one of the Russian platform companies. The work also examines in detail the experience of Yandex.Market and the key advantages that make the platform company one of the most successful in the Russian market.

Income generation on care work digital labour platforms

AbstractRecently, a growing number of digital platforms have emerged that intermediate or facilitate connections between care workers and people requiring care. Platforms position themselves as a viable response to the ‘care crisis’, yet have been decried for driving down wages and exposing workers to greater risk and precarity. Unlike more transactional types of intermediated work such as ride‐hailing or food delivery, the income of care workers depends not on pricing algorithms but on how much they work and the potential for individual agency in negotiating pay rates with clients. Drawing on three sources of data from a global digital platform business, this study asks how self‐employed care workers enact agency in relation to income generation. The findings revealed evidence of three types of agentic action: establishing professional worth; assessing costs and maximizing income; and negotiating with clients. Agency was constrained, however, by the platform's architecture and client‐related dynamics. The study provides insights into the nuanced dynamics of individual worker agency in relation to income, in a growing, feminized and largely devalued new market. The findings also demonstrate how platform businesses, despite not managing work or workers directly, play a significant role in the organization and distribution of work.

Attacking concentration: market power in the digital space

ABSTRACT Increasing market concentration has become a topical issue in competition law worldwide. This article explores how firms, especially digital platform businesses, increase market concentration which may facilitate entrenched market power and anti-competitive conduct in their upstream or downstream markets. It considers in an Australian context two specific ways in which the power of a dominant firms including digital platforms may be constrained. The first is allowing the parties with lesser market power to collectively bargain, which can redress the imbalance in bargaining power to make the market work more effectively. A second and related option is the introduction of mandatory codes of conduct, which may be suitable in markets where perennial problems with market power imbalances exist. Australian experience suggests that these options can assist markets to function more effectively, and they may provide additional flexibility for other jurisdictions.

KaPIL – Karlsruher Platform Innovation Lab: A Validation Environment to Design Digital Platform Business Models and Test Related Tools and Methods

In the past decade, digital platform business models have gained significant worth as they differ in creating and capturing value compared to traditional linear business processes. Previous research developed the SPEC – Smart Platform Experiment Cycle, a process to validate digital platform business models to ensure their successful implementation. In this context, it is intriguing to investigate whether and how step (1) of SPEC can be expanded by other platform design tools. This study developed a Live-Lab, namely KaPIL – Karlsruher Platform Innovation Lab, to design digital platform business models and test related tools and methods. Applying the Design Research Methodology, the designed Live-Lab is created by implementing ProVIL – Product Development in a Virtual Idea Laboratory combined with the Smart Education Concept and digital platform business knowledge. KaPIL was applied with students from the Karlsruhe University of Applied Sciences in cooperation with the company STIHL to assess its efficacy, applicability, and validity. KaPIL can be used to design digital platforms and shows that the Platform Canvas, the Platform Business Model Canvas, and the Platform Design Canvas can expand step (1) of SPEC. In future research, more applications of KaPIL are required to validate its robustness and extend it to other digital platform methods and tools. Keywords: digital platform business model, live-lab, design research methodology, innovation process, validation environment

LINKING DIGITAL B2B PLATFORM BUSINESS MODELS AND PRODUCT DEVELOPMENT: A BIBLIOMETRIC ANALYSIS AND LITERATURE REVIEW

AbstractDeveloping digital platform business models, especially in business-to-business (B2B) markets, has a high potential for companies who successfully develop their products in generations. The model of SGE - System Generation Engineering describes the development of mechatronic systems on subsystem level. The authors investigate to what extent a comprehensive and unified methodology can be identified, connecting the research areas of product development and digital B2B platform business models. Therefore, this study conducted a bibliometric analysis of scientific data to identify a research gap and a qualitative literature review to affirm the relevance of future research in this research area. The results show a gap between the research areas of digital B2B platform business models and product development. Essentially, several renowned platform researchers suggested performing future research with a methodology that fulfils the following purposes: (1) improve the general understanding of digital platforms, (2) understand their success factors and development, and (3) deal with challenges (e.g., monetization) and loss of valued personal relations in B2B markets through digitization.

Exploring the Boundaries of Success: A Literature Review and Research Agenda on Resource, Complementary, and Ecological Boundaries in Digital Platform Business Model Innovation

Digital platform business model innovation is a rapidly evolving field, yet the literature on resource, complementary, and ecological boundaries remains limited, leaving a significant gap in our understanding of the factors that shape the success of these platforms. This paper explores the mechanisms by which digital platforms enable business model innovation, a topic of significant theoretical and practical importance that has yet to be fully examined. Through a review of the existing literature and an examination of the connotations of digital platforms, the design of platform boundaries, and the deployment of boundary resources, the study finds that (1) the uncertainty of complementors and complementary products drives business model innovation in digital platforms; (2) the design of resource, complementary, and ecological system boundaries is crucial to digital platform business models and manages complementor and complementary product uncertainty while promoting value co-creation; and (3) boundary resources establish, manage, and sustain cross-border relationships that impact value creation and capture. Based on these findings, four research propositions are proposed to guide future research on digital platform business model innovation and provide insights for effectively innovating business models and influencing value creation and capture.

Impact of India's Data Protection Bill on Digital Platform Businesses

Impact of India's Data Protection Bill on Digital Platform Businesses

A research on regulatory framework and tax for digital platform business

A research on regulatory framework and tax for digital platform business

Product Digital-Platform-Business Co-Design: A Systematic Sprint Approach

In today's connected age, numerous companies that develop mechatronic systems in generations pursue a digital platform business model. Previous research created the SPDS – Smart Platform Design Sprint to provide product development processes with the necessary tool to build digital platform business models. The SPDS is a five-day method to discover and design digital platform business models. This research validates and further develops the SPDS to provide insights into the first practical application and evaluates the methodology's functionality by solving a real-world problem. More applications of the SPDS are needed to verify its robustness for improved generalization.

Rapid Platform Exploration – A Sprint to Discover and Design Digital Platform Business Models

In recent years, the significance of digital platform business models has been increasing. This growth creates an increasing demand for tools that companies and startups can apply to find and develop sustainable platform business models. Today, various platform design tools are available to help companies and startups in the platform development. Previous research by Brecht et al. (2021) on the validation of platform business models has provided methods requiring, amongst others, a discovered and verified business model. However, there is a lack of research in establishing guidelines on how to reach this verified state. By applying the Google Sprint, a popular method to quickly generate insights into a variety of problems and enriching it with platform design tools, this research creates the Smart Platform Design Sprint (SPDS). The SPDS provides a solution to discover and obtain a verified business model. Its novelty lies in incurring the speed of the Google Sprint and incorporating the expertise of platform design tools. Through a series of expert interviews, the SPDS is improved, and its necessity verified. In future research, the SPDS awaits application in a practical setting showing its feasibility. Keywords: platform design tools, business model, exploration, google sprint, smart platform experiment cycle

Space Economy, Innovation and Sustainability

Space Economy (SE) is increasingly becoming relevant for business and management with impacts on many industrial segments (i.e. agriculture, transport, assurance and the environment) but also on sustainable practices (i.e. Agenda 2030). Despite the importance of SE for new business models and value creation processes in the ecosystem, theoretical approaches for the downstream space economy implementation are still quite limited in literature. Accordingly, this paper reports the results of an in-depth analysis of the main factors (i.e. Open innovation drivers and Digital Platform business model) that affect effective implementation of space value chain models

“Never Let a Good Crisis Go to Waste”: How Consulting Firms Are Using COVID-19 as a Pretext to Transform Universities and Business School Education

During the first two years of the COVID-19 pandemic, major management consulting firms published numerous reports calling for “revolutionary” change in universities, including business schools. Leaders should use the crisis as an opportunity to transform their institutions into digital platform businesses, resembling Spotify or YouTube. By critically analyzing these reports this essay seeks to make three contributions. First, at the university level, I conceptualize these recommendations as an expression of extreme neoliberalism, consisting of “crisis opportunism” and “libertarian utopianism.” Second, moving to the business school level, I argue that the influence of management consultants provokes a professional paradox, especially among management educators. This has significant implications for the legitimacy of business school academics. And thirdly, I propose that the business school community is uniquely positioned (vis à vis other schools in the university) to challenge extreme neoliberalism. Three avenues of resistance are posited, focusing not only on consulting firms but their clients too - senior university executives.

Effective Merger Review: A Question for Australian Courts?

There is increasing global concern about the effectiveness of merger control in competition law. Globally, concerns about rising market concentration and in particular, the effect of consolidation by digital platform businesses, have prompted numerous inquiries and articles exploring whether competition laws are effective in addressing concerns about their anticompetitive impact in relation to mergers. Australia’s approach to merger control makes it an outlier in a number of ways. Its major approval procedure, informal clearance, is outside the scope of the Competition and Consumer Act 2010 (Cth). Formal decisions are generally heard in courts. Of note, under the current “likely substantial lessening of competition” test which became operative in 1993, the Australian Competition and Consumer Commission (ACCC) has not successfully proven in court that a merger would be likely to infringe the law. This article examines the methodology of Australian courts in applying this test, including the judicial approach to acceptance and assessment of economic and noneconomic evidence. It suggests approaches to enable consideration of the best evidence available. This analysis is in the context of amendments to the merger system recently proposed by the ACCC. We conclude that there are significant challenges in determining whether a merger is anticompetitive and that changes to the relevant methodology are necessary. This might be done by adopting the ACCC proposals or by a reconsideration of the merger factors and the approach to applying them.

Resistance to Digital Transformation: The Role of Middle Management Personal Networks

This paper studies the digital transformation process of one of Russia’s largest freight forwarding companies that was met with resistance from its middle management which put the entire change process in jeopardy. With the move to a digital platform business, the middle management had to follow enterprise-wide rules imposed by the underlying information system. Preferred treatment of hauliers as established by regional managers were no longer possible and it was this loss of autonomy that stood at the core of resistance among the firm’s middle management. The practice of such extra organizational networks is described in Russian bz the term ‘blat’. The blat originated during the Soviet Union and described a system of personal favors that ensured the functioning of society in times of scarcity. The paper describes eight instances of middle managers’ resistance who resisted the organisational change. Data was collected through interviews and document studies.
 We describe the circumstances that triggered resistance behaviour of each middle manager through their own words, the viewpoint of project managers and the company’s top management. Our findings describe how individual resistance was overcome and – in many instances – converted into support for the change agenda. The original value of our paper is that the company overcame the resistance and successfully implemented its change agenda and entered a period of economic growth. Although the change process had to overcome many obstacles, the result proved economically very successful. Today, the company is one of the top transportation firms in Russia.

Drone delivery logistics model for on-demand hyperlocal market

ABSTRACT Hyperlocal delivery service is a digital platform business that receives on-demand orders from customers to deliver products from a local offline shop in logistics. Deploying drones/Unmanned Aerial Vehicles (UAVs) on the hyperlocal market is still a relatively unexplored phenomenon and that demands attention on sustainable drone delivery strategies. This paper introduces both non-flexible and flexible drone delivery strategies for the hyperlocal market. Further, drone operational complexities like deciding a precise location for landing and take-off in congested cities, limited flight endurance, incorporating docking stations in drone routes and drone safe-return strategy are investigated. This problem is formulated as the Mixed-Integer Linear Programming (MILP) model, which minimises the drone's total distance by the optimal energy consumption to complete the scheduled services. For practical feasibility, this paper focuses on heuristic solutions that effectively solve the problem efficiently and near optimally. The approach facilitates the operations manager to decide on an appropriate drone travel capacity based on service distance and the size of on-demand customers in an urban hyper-local logistics environment.

Organizational Status as a Promoter and an Inhibitor of Transition to Digital Platform Business

While prior research considerably expanded our understandings of the platform business and its success factors, scant attention has been paid to the cases of incumbents’ strategic change from the product-based business model to the platform-based business model. Such a strategic shift may innovate value both beneficial for the firm and its stakeholders, yet it also poses a significant number of uncertainties for their constituents. Facing uncertainties, constituents are expected to find signals such as status and reputation. Thus, we examined the effect of a firm’s status on the important strategic change of adding a digital platform, and the potential contingency of the effect. Exploiting a sample from the Fortune list of Top 500 companies in China, we found that high-status incumbents are more likely to add a digital platform than their low-status counterparts, thus indicating status can be seen as a promoter. After the digital platform addition, however, low-status firms are more likely to increase in performance than their high-status counterparts, thus suggesting that status can meanwhile be seen as an inhibitor. This research has contributed to our understandings of the social contingency of strategic change, digital platform business model and illuminated the need for revisiting the boundary condition of organizational status as an advantage and a constraint. Keywords: Digital Transformation, Organizational Status, Platform Business Model

Analysis of digital platforms' business models and their applications in the 4th industrial revolution

Digital revolution, as a result of the fourth industrial revolution is changing the way people live and conduct their business. Its promise of sustainability is building optimism amongst users. However, there is a lack of research in understanding how digital platform business models can be tailored for use in existing businesses and how this technology can be used to revolutionize new businesses. This study conducted a systematic literature review to create a deeper understanding of the technology of digital platform business models and their characteristics and application. The results of this study are used to develop a hybrid structure of the digital platform business models and their components. Also, this study identified the critical elements of the cyber-physical system. Herein, the core, trendy, intermittent, and emergent keywords relating to digital platform business models are placed and analyzed. This study contributed to the body of knowledge by an in-depth understanding of digital platform business models and their relevance in the fourth industrial revolution by removing barriers that may limit their use.