Multi-sided Platforms Research Articles

Mobile Money as a Stepping Stone to Financial Inclusion: How Digital Multisided Platforms Fill Institutional Voids

The literature on institutional voids examines how intermediaries, such as business groups and business incubators, address such voids in emerging economies. However, it remains unclear whether and how digital multisided platforms fill these voids given their unique features. This study focuses on mobile money platforms, which allow users without bank accounts or credit cards to perform financial transactions. We propose that these platforms fill institutional voids in three ways by (i) enabling data-based certification, (ii) providing unified access to distributed services, and (iii) scaling through network effects to reach previously excluded market participants. We argue that these novel mechanisms enable mobile money platforms to expand credit access to end users from formal financial institutions and thereby act as stepping stones to financial inclusion. Our analysis is based on a difference-in-difference design that leverages regulatory changes that allowed nonbanks to operate as mobile money operators and data from a representative random sample of 151,771 individuals in 78 countries. We supplement our quantitative analysis with rich, hand-collected qualitative evidence to illustrate the mechanisms underlying our findings. Funding: Financial support from the Wharton School of the University of Pennsylvania. Supplemental Material: The online appendix is available at https://doi.org/10.1287/orsc.2022.16562 .

Managing multi-sided platforms in an emerging country: challenges, critical success factors and contrasts with traditional companies

PurposeThis paper aims to analyze the main challenges and critical success factors (CSFs) in managing multi-sided platforms (MSP) in Brazil, as well as to understand the differences between this management model and traditional companies.Design/methodology/approachSemi-structured interviews were conducted with experienced professionals in the field, focusing on challenges, CSFs and difficulties in managing MSP businesses. The data were analyzed using a mixed-method approach, involving content analysis for qualitative data and grey relational analysis and sensitivity analysis for quantitative data.FindingsThe experts identified eight CSFs, seven key differences between traditional businesses and MSPs, and five technology-related challenges in managing MSPs. They assessed the main difficulties reported in the literature and ranked them, with the most critical challenges being competition with companies adopting MSP models in the same sector (product/service niche) and the necessity for ongoing process adjustments to accommodate scalability.Originality/valueThis study enhances understanding of CSF, disparities between traditional and MSPs and technology-related challenges in this management model. The results can assist managers in emerging nations in enhancing the performance of MSP operations and can be a resource for researchers studying various contexts and creating company guidelines.

B2B service sales on a digital multi-sided platform: Transformation from value chains to value networks

Business-to-business (B2B) service suppliers mobilize a platform approach to enhance their competitive advantage, service selling, and long-term relationships. These emerging platforms in established value chains have been insufficiently studied on a strategic level, especially regarding value orchestration. The aim of this article is to examine how digital multi-sided platforms (DMSPs) change platform owners' value chains toward joint value creation from a sales approach, including sales strategy, sales structure, and customer relationships. Our longitudinal multiple case study was conducted on four platform owners adopting a DMSP as part of their service selling. The findings show how the transition from value chain toward value orchestration in a network shifts the platform owner's focus to develop a common sales strategy with strategic network actors. The restructuring of sales with platform resources allows platform owners to manage larger networks with fewer resources and utilize enhanced interaction to create commitment in network relationships. We put forward three propositions and a framework to illustrate the interdependence of the value chain changes under examination. Additionally, this study offers various managerial implications for companies when utilizing platforms and provides avenues for further research.

Market Entry Form Choices of Multi-Sided Platforms in the Travel Booking Sector

The purpose of this study is to explore how online travel booking firms using multi-sided platform (MSP) business models select their market entry forms using the affecting factors of foreign market entry as a conceptual framework. The utilization of a multiple-case study is employed to conduct a comprehensive analysis and to investigate the patterns and behaviors exhibited among the various cases. Data from five online travel booking companies using MSP business models, including company portfolios, business plans, company websites, and online archives, were gathered and analyzed to ensure cross-validation and triangulation. Through examination of the data from the study, five themes could be identified to answer the research question. The findings suggest that online travel booking firms using MSP business models: 1) Gain access to foreign markets primarily through the utilization of export modes. 2) Employ hierarchical modes for the first internationalization. 3) Use intermediate modes whenever local regulations necessitate their implementation. 4) Adopt hierarchical modes when the target country holds the top position as the most preferred destination from the home market or when the home country ranks as the number one choice for visitors from the target market. The findings of this study will contribute to the expansion of the knowledge of online travel booking firms using MSP business models. Furthermore, it will also provide practical resources to founders, executives, and entrepreneurs to understand how companies with MSP business models select their market entry forms in the online travel booking sector.

A CONCEPTUAL CLEANSOLUTION BUSINESS MODEL: EMPOWERING LOW-INCOME B40 COMMUNITIES AS ENTREPRENEURS THROUGH HOUSEKEEPING AND SERTU CLEANING SERVICES

This paper discusses a conceptual business model of housekeeping service, called CleanSolution that aims to provide property care and cleaning management services through the use of a digital platform for business operations. The platform is intended to improve connectedness between housekeeping and sertu cleaning service companies and their workers, aligned to the first, third and eighth Sustainable Development Goals (SDGs) of no poverty (SDG1), good health and well-being (SDG3) as well as decent work, and economic development (SDG8). The critical challenge for CleanSolution is to focus on creating work opportunities for B40s and nurturing B40 cleaning entrepreneurs through sertu cleaning services that will benefit potential customers in terms of creating decent work & economic growth (SDG8) for individuals and the country. On top of that, the business provides a sustainable cleaning service including Sertu cleaning which is a Shariah compliance cleaning method for Muslim customers, through a trusted online platform as a medium of communication between customers, workers and the sertu cleaning service companies. CleanSolution is designed, tested, and established as a multi-sided platform business, after conducting surveys in understanding the problems faced by the various customer segments (CS) - customers, workers and the housekeeping & sertu cleaning service companies. Design thinking methodology has been adapted in this paper including empathising, defining, ideating, prototyping, and testing. The paper outlines the creation of both a Business Model Canvas (BMC) and a Value Proposition Canvas (VPC) to guide the development and implementation of the digital platform.

A CONCEPTUAL TAAJIR MULTI-SIDED PLATFORM BUSINESS MODEL:NURTURING ENTERENEURIAL SKILLS AND ENHANCE JOB OPPORTUNITIES FOR B40 STUDENTS

It is not a secret that many university students are looking for job opportunities to do during their period of higher education. There are many reasons behind this search of theirs with monetary cases–especially for the B40 students–and job experience seeking that are related to their areas of study, being the top reasons. Unfortunately, finding a job that does not interfere with their studies is very hard to do. This paper is aiming to offer conceptual ideas of Taajir multi-sided platform business model that plan to address the two problems mentioned above which are aligned with the United Nations Sustainable Development Goals (SDGs) in reducing poverty and creating a decent work and economic growth (SDG 1 and SDG 8). This paper discusses the key challenges and extreme pains that various customer segments confront, as well as a conceptual solution for overcoming those challenges. Adapting the Design Thinking (DT) approach using business modelling tools such as the Business Model Canvas (BMC) and the Value Proposition Canvas (VPC), the key problems and extreme pains were identified and viable conceptual solutions were generated. The DT approach entails conducting literature review, benchmarking, and interviews in understanding the extreme pains; ideation and brainstorming, design and testing of business model prototype in the form of BMC and VPC framework with various customer segments via surveys; and establish possible conceptual solutions in terms of business model and low-fidelity apps.

DEVREL STRATEGY FOR CUSTOMER RELATIONSHIP MANAGEMENT IN THE CONTEXT OF EVANGELISTIC MARKETING

The article presents a DevRel strategy model for establishing a sustainable relationship between a brand and consumers who play the role of marketing evangelists. Treating brand consumers as developers and creators of an informational product allows the brand to benefit from network effects. This is described both qualitatively and quantitatively based on the laws of Sarnoff, Metcalfe and Reed. Brand network effect and consumer creativity together form a multi-sided platform that serves as an ecosystem for further relationships between the brand, consumer developers and society. The role of the brand in this model is presented in the simultaneous forcing of five processes that allow to keep the formed ecosystem in a state of functioning. The article also describes two DevRel concepts: Dev1st and Dev+, which may be relevant for companies in the B2D, B2B, B2C markets. Recommendations on management for the implementation of the DevRel-concept are given.

Firms' multi-sided platform construction efforts and ESG performance: An information processing theory perspective

This research explores the impact of business-to-business (B2B) firms' efforts to construct technology-enabled multi-sided platforms (MSP efforts) on their ESG performance through an information processing theory (IPT) lens. Integrating the literature on digital transformation and MSPs, we delineate firms' MSP efforts along with three dimensions (digital operation efforts, technology sharing efforts, and flat management efforts) and posit that each addresses specific challenges associated with the environmental, social, and governance components of ESG performance. Using a sample of 213 publicly listed Chinese firms, encompassing 1527 firm-year observations, we measure the variation in the three dimensions of MSP efforts through a deep neural network-based latent Dirichlet allocation topic model to analyze their annual reports. We find that digital operation efforts enhance environmental, social, and governance performance; technology sharing efforts primarily improve environmental and social performance; and flat management efforts boost only governance performance. In addition, these effects are more pronounced for large firms than for small firms. Two robustness checks, employing patent applications and granted patents as alternative indicators of firms' MSP efforts, further corroborate these findings. This research augments both the MSP and ESG literature, offering actionable insights for firms, governments, and non-governmental organizations.

Leveraging Social Network Utilization to Attain Competitive Advantage in Digital Multi-Sided Platforms

With the rapid growth of information technology, various business models that harness it for value creation and value capture have emerged. Unlike traditional software businesses that focus solely on selling software or its usage, these business models also involve the digitalization of conventional business processes. Firms adopting the digital multi-sided platform business model often serve as intermediaries, disrupting established businesses in the process (Kazan et al., 2014). They leverage their network resources as suppliers and connect them with customers (Hagiu & Wright, 2015). Ultimately, economic value for these firms is generated through transactions between suppliers and customers. They benefit as traffic providers, creating value for both suppliers and customers.

Platform-based support for AI uptake by SMEs: guidelines to design service bundles

PurposeManufacturing small and medium-sized enterprises (SMEs) have already noticed the tangible benefits offered by artificial intelligence (AI). Several approaches have been proposed with a view to support them in the processes entailed in this innovation path. These include multisided platforms created to enable the connection between SMEs and AI developers, making it easier for them to network each other. While such platforms are complex, they facilitate simultaneous interaction with several stakeholders and reaching out to new potential users (both SMEs and AI developers), through a collaboration with supporting ecosystems such as digital innovation hubs (DIHs).Design/methodology/approachMixed methods were used. The literature review was performed to identify the existing approaches within and outside the manufacturing domain. Computer-assisted telephonic (in-depth) interviewing , was conducted to include perspectives of AI platform stakeholders and collect primary data from various European countries.FindingsSeveral challenges and barriers for AI platform stakeholders were identified alongside the corresponding best practices and guidelines on how to address them.Originality/valueAn effective approach was proposed to provide support to the industrial platform managers in this field, by developing guidelines and best practices on how a platform should build its services to support the ecosystem.

A taxonomy and ontology for digital platforms

In academic literature and in business communication digital platforms are categorized into different types including, but not limited to, multi-sided platform, digital marketplace, on-demand platform and sharing economy platform. Observing the substantial literature on these platform types, both in academia and professional contexts, there is lack of consensus on the definition of these digital platform types. On top of that, there is a lack of knowledge in the literature on the requirements and design of these digital platform types. We address the observed lack of shared conceptualizations by creating a taxonomy for digital platforms, by classifying digital platforms according to their distinctive features. Further, we address the lack of design knowledge with a digital platform reference ontology that describes the construction and operation of the different types of digital platform that are distinguished in the taxonomy. This reference ontology, developed using the Unified Foundational Ontology (UFO) and several of its core ontologies, is organized into different ontology modules, allowing to describe functionalities that are common to any digital platform and more specific functionalities that have their origin in the distinctive features that were used to construct the taxonomy. The taxonomy that we contribute helps to clearly define the different types of digital platform that can be observed today. It also helps analysing further evolutions in the platform domain. The contribution of a well-founded digital platform reference ontology is a step towards a better understanding of digital platform functionality, better communication between stakeholders, and eventually may facilitate future research and development of new types of digital platform.

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

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.

Managing resource loops in circular supply chains: A taxonomy of multi-sided platforms in the B2B setting

Multi-sided platforms have been increasingly recognized as enablers for circular supply chains. This notwithstanding, scholars are still struggling with a lack of deep understanding of the different roles that multi-sided platforms may play to enable inter-organizational collaborations among supply chain actors to foster the creation of circular supply chains, especially in the business-to-business setting. To address this research gap, the paper develops a taxonomy of multi-sided platforms enabling circular supply chains in the business-to-business setting, by leveraging existing literature as well as an empirical analysis that included 26 multi-sided platforms. Such platforms have been identified through the involvement of a panel of experts into this research area and analysed through a Delphi method. The proposed taxonomy is characterized by two dimensions: (i) the circular supply chain strategy that can be fulfilled through multi-sided platforms, i.e., closing, slowing, or narrowing of resource loops; and ii) the supply chain(s) involved by the resource loops to fulfil such strategies, i.e., either the supply chain in which a resource was originally addressed to or different supply chains. The taxonomy includes six clusters of multi-sided platforms enabling circular supply chains in the business-to-business setting. The study represents the first attempt to provide an overarching conceptualization of the different roles of multi-sided platforms enabling circular supply chains in the business-to-business setting. Furthermore, it informs managers on how multi-sided platforms can be exploited by companies to foster the creation of circular supply chains in this setting.

The influence of sustainability and digitalisation on business model innovation: The case of a multi-sided platform for food surplus redistribution

While digital multi-sided platforms have been primarily investigated from a technical or economic perspective, the evolution of their business models over time and the significance of social and environmental sustainability for their success received relatively less attention. Through a longitudinal case study on the evolution of a digital platform for food surplus redistribution, we analyse how the business model of a multi-sided platform evolved to balance and integrate the objectives of economic viability with social and environmental sustainability goals. Data were collected through interviews with the platform stakeholders and then coded following the Gioia methodology. By adopting the lens of sociotechnical theory, we develop a set of four propositions to provide a generalisation of our findings to the broader literature on digital multi-sided platforms. Based on the results, we argue that the sustainable business model innovation process of a digital multi-sided platform must consider the mutual influence between business model innovation, sustainability dimensions internal to the business model, and the leverage of opportunities offered by digital technologies. Eventually, we underline the fundamental role of the platform leader in guiding such evolutionary process and its ability to generate benefits for all stakeholders through both sustainability and digitalisation levers.

The Future of Insurance Intermediation in the Age of the Digital Platform Economy

Today most insurance is sold by over a million brokers and independent agents acting as intermediaries between the insurance companies and their customers. Digitalization and changing customer behavior have fostered the development of insurtech businesses, and, more recently, multi-sided platforms are emerging as new market forms for insurance intermediation. This paper aims to provide a better understanding of how the emergence of the platform economy, with a market dominated by multi-sided platforms, will potentially impact insurance intermediation in the future. Using inductive content analysis on the results of a systematic literature review of the body of research on insurance intermediation, we identify the key functional roles fulfilled by insurance intermediaries. Applying these roles to a literature review on multi-sided platforms allows us to compare how different market forms and players embody the functional roles of intermediaries. Our findings suggest that multi-sided platforms are better able to perform certain roles in terms of agility, scale and scope, and we discuss the future role of platforms in insurance intermediation.

B2B digital platform adoption by SMEs and large firms: Pathways and pitfalls

The ongoing paradigm shift towards two-sided and multi-sided platforms is reshaping business transactions and collaborations worldwide. Such digital platforms have found widespread acceptance in business-to-business markets, serving as catalysts for strategic networking, transparency, and traceability, especially in sourcing activities that demand strategic solutions for supplier selection and collaboration. Nonetheless, the variables influencing platform adoption in small and medium-sized enterprises (SMEs) and large firms remain somewhat opaque. In this study, the social network theory (SNT), diffusion of innovation (DOI) theory, and technology–organisation–environment (TOE) framework were used as analytical lenses. Drawing from a sample of 318 responses from supply chain managers, this study employs a fuzzy-set qualitative comparative analysis (fsQCA) to identify 15 configurations related to the adoption of two-sided platforms in both SMEs and large manufacturing firms. The results underscore that SMEs' drive for platform adoption is primarily anchored in their need for flexible, fluid networks, thus reinforcing the value of two-sided platforms in cultivating robust supplier relationships. In contrast, large firms are driven by potential advantages in efficiency and transactional security. However, the low adoption intention in both SMEs and large firms can be attributed to perceived barriers and a lack of perceived benefits, respectively.

Multi-Sided Platforms: Demise or Renaissance?

Multi-Sided Platforms: Demise or Renaissance?

Managing the User Crowds: An Effectual Approach of Business Model Innovation and Platform Envelopment for Co-Creation on a New Multi-Sided Platform Firm

The growth of Internet firms these days starts to catch the strategic management scholar attention. However, the study about how Internet platform achieves their performance with their unique business model is very limited. This research wants to fill this gap by platform envelopment attack typology to explain the strategic fit of business model innovation typology and envelopment attack typology. Finally, we proposed the same proposition as follows: Closed Proactive BMI Typology will lead to Complementary Envelopment Attacks Typology, Open Reactive BMI Typology will lead to Functional Unrelated envelopment attacks typology, and Open Proactive BMI Typology will lead to Weak Substitute envelopment attacks typology. Furthermore, economies of scope and user base overlap play a significant role in determining platform envelopment performance.

Going digital with multisided-platforms: Assessing the innovation adoption process from the perspectives of travel agents

Travel agents’ adoption of digital technologies to digitally transform their businesses has seen a rapid surge in recent years in the tourism industry. Multisided Platforms (MSPs) have been one of those digital technologies that digitally transformed brick-and-mortar travel agents to have access to online tools and modules for searching, comparing, and booking travel content. This study examines the factors that are taken into consideration by travel agents in the three phases of the adoption process, namely, pre-adoption, during-adoption, and post-adoption phases. A qualitative study was taken up for this purpose and seventeen semi-structured interviews were conducted with international travel agents. The findings of this study were twofold. First, the findings of the study adhered to the existing factors of the diffusion of innovation (DOI) model such as relative advantage, compatibility, complexity, trialability, and observability, as crucial factors for adopting MSPs. Second, the findings of the study extended the DOI model by proposing two other factors, supportability, and integrability, which were deemed crucial by travel agents when adopting MSPs. The study shows that as part and parcel of the DOI model, travel agents by adopting MSPs get access to global content from multiple-channels and multiple-providers easily and securely. The study discusses practical and theoretical implications.

Shifting focus of value creation through industrial digital twins—From internal application to ecosystem-level utilization

Industrial organizations are increasingly using digital twins as the solutions offered by digital twin service providers are rapidly expanding. This study aims to investigate how the value creation mechanism changes when transitioning from an organizational digital twin to an ecosystem-level digital twin that functions as a two-sided or multi-sided platform. The study results are based on the multiple longitudinal case studies conducted in Finland, where data were gathered using various methods and replications across the cases were conducted to investigate the same phenomenon. The study makes the following main contributions: (1) although the focus of value creation through digital twins at the level of machines/production lines highlights a technological approach, value creation is increasingly complemented with a human approach when digital twins are used as factory-level internal platforms. (2) Owing to the well-recognized value creation logic in internal use, industrial organizations are inclined to expand their value creation beyond organizational boundaries and establish two-sided and multi-sided platforms around their digital twins. (3) Forerunner organizations are also looking for opportunities to establish multi-sided platforms around their digital twins even though they are not yet ready to shift their value creation logic from internal to ecosystem-level utilization.