Platform-based Business Models Research Articles

The development of a C2B2C sharing economy platform: A case study of China's Airparking

The emergence of the sharing economy has led to a proliferation of novel platform-based business models in recent years. A particularly prominent type of platform is the C2B2C platform, but our knowledge of the development of these platforms is limited. Through an in-depth examination of the development of Airparking, one of China's most successful parking-space-sharing platforms, our study reveals that a C2B2C platform develops in a specific sequence across three phases, with distinct required actions and developmental outcomes. We have also identified the facilitating conditions that are conducive to this process.

Integrative Framework for Platform-Based Business Models to Drive Climate Neutrality in Logistics

To make possible the integration and harmonization as well as the orchestration of independent logistics operations, smart platforms and platform ecosystems are necessary to effectively connect the providers of sustainable transport solutions and those who need them. Since the beginning of 2023, incoming EU regulations regarding minimum standards for EU Climate Transition Benchmarks demand large companies to also report their emissions caused by subcontracting services. In response to this opening, we surveyed the past and ongoing experiences, we identified as well as explored the barriers that may determine a hindering effect, and we proposed an integrative framework for platform-based business models for sustainable logistics (PBM-SL) so as to contribute to designing business models for logistics, with the purpose of assisting any interested party in developing such a model for transport and logistics and of facilitating the insertion of sustainability issues among different platform solutions to optimize freight flows and drive logistics to climate neutrality.

Identifying the Determinants of Platform-Based E-Government Service Use

Governments have embraced platform-based business models, increasingly used in companies, to enhance efficiency, standardize information, and deliver a broader range of information quickly and easily. The integration of platform-based e-information services is essential for innovative e-government policies, as it leads to improvements in administrative efficiency and better information quality. A theoretical review of success factors highlights the significance of service efficiency, user satisfaction, and the intention for continuous use. The authors conducted their own survey of Korean citizens using Government 24, an integrated platform for frontline e-services. Their analysis revealed that information and service quality boost user satisfaction, while system and service quality heighten perceived efficiency. Perceived efficiency and satisfaction in platform-based e-services play a crucial role in encouraging users to continue utilizing these services.

Digital transformation and business model in management & business research: An overview and future perspectives

<p>During pre-pandemic times, organizations acknowledged the importance of digital transformation (DT), but encountered challenges during implementation, such as complexity and cost, which hindered progress. The Covid-19 outbreak elevated DT to an urgent priority, necessitating resilient and competitive consumer-aligned business models. Morocco’s post-Covid-19 programs, such as government initiatives like INDH, Forsa, CRI boost-lab, and university incubators, fostered “digital entrepreneurship”, promoting awareness and platform-based business models across industries. Digital entrepreneurship involves creating new businesses or transforming existing ones through technological innovations. Nonetheless, this transition presents challenges and potential pitfalls. Existing reviews often focus on limited business and management domains, often leaning towards early optimism regarding DT’s trajectory. In this context, our study employs bibliometric analysis using the Scopus database. We provide a comprehensive literature review to reveal DT’s evolution within business and management. Our focus lies on the international and national DT landscape, considering three critical clusters: Digital transformation, Cloud computing, and business models. This approach enhances our understanding of the multifaceted implications of digital transformation (DT). We offer insights into the complex interplay among DT, cloud computing, and evolving business models. This study serves as a valuable resource, contributing to the comprehension of DT’s dynamic progression.</p>

The internationalisation of platform-based businesses – the case of GAFAM

The platform-based business model is indicated as the ‘winning’ one in the days of the digitisation of businesses. Such a platform constitutes a digital infrastructure bringing together various groups of users, whereas the platform owner provides facilities for establishing multi-sided relationships and interactions through the platform both within and between such groups. The platform generates the formation of a network of interactions between users and the operator of the business model seeks methods for and ways of monetising such interactions and data by organising the processing of data and the use of interactions. It has stimulated the spectacular development of the GAFAM corporations, the global IT giants and leaders. The paper aims to examine the process of the internationalisation of corporations relying on platformisation and to determine whether platformisation influence the internationalisation of economic activities. As demonstrated by the research carried out, despite their global operations, the digital corporations in question, GAFAM, have not internationalised as the process is traditionally understood; instead, they have been able to effectively operate on a global scale without expanding their foreign assets or foreign employment. It has created entirely new drivers towards decelerating globalisation as businesses relying on platforms and digitisation continue to grow.

Business model change and internationalization in the sharing economy

For over a decade, sharing economy companies (“sharecoms”) have been operating on an international stage with novel digital platform-based business models that create and capture value through unique dimensional configurations. However, the relationship between these business models and the international expansion of sharecoms remains under-theorized. This longitudinal study addresses this gap and presents new empirically driven insights. Based on a cross-border, cross-sector case study of six sharecoms, we investigated the evolution of the business model in relation to internationalization. The results showed that multidimensional changes took place within the business models, impacting the sharecoms’ internationalization in terms of speed, scale, and scope through circular causality. Moreover, by creating virtuous cycles of business model change and internationalization, sharecoms were able to achieve network effects and unlock value.

From platform growth to platform scaling: The role of decision rules and network effects over time

Although firms increasingly operate with platform-based business models, only a few have been shown to prosper and survive in the long run. While the literature has traditionally focused on platform growth along with facilitating network effects through value creation, our knowledge around platform scaling remained rather limited. Using an inductive theory elaboration approach with a longitudinal case study of a two-sided platform, Takeaway.com, we offer in-depth understanding about how the top management team members used decision rules to navigate emergent opportunities and challenges over time, and to transition from platform growth to platform scaling. We find that the top management team members purposefully and repeatedly use and revise a portfolio of decision rules to cultivate indirect and data network effects, which allows them to initially facilitate the growth of their platform and over time support the transition to scaling the platform. Our findings provide important implications about the distinct nature of platform growth and platform scaling, and the role of decision rules in cultivating a combination of network effects over time in order to arrive at platform scaling and ensure platform survival and prosperity over an extended period.

A Multi-Case Study of Business Innovation Models for Manufacturing Capacity Sharing Platforms, Based on a Resource Orchestration Perspective

The sharing economy and the manufacturing industry are integrating and promoting the transformation of the manufacturing industry. However, scholars have not yet conducted many studies about this area. This paper selects four typical cases of platform-based business innovation as research objects to reveal the mechanism of digital technology, resource orchestration and platform-based business model innovation. The study found that the four types of capacity-sharing business model innovations were achieved by manufacturing enterprises using digital technology and adopting specific resource orchestration to promote the transformation and upgrading of the manufacturing industry. The perspective of digital technology empowerment and resource orchestration can provide insights to achieve a match between digital technology, resource orchestration strategies and business model innovation, and to provide insights to engineering managers in manufacturing companies.

TRANSFORMATION OF BUSINESS MODELS OF RUSSIAN INDUSTRIAL COMPANIES UNDER THE INFLUENCE OF DIGITAL TECHNOLOGIES

The article presents the results of the influence of digital technologies on the transformation of industrial companies’ business models and its analysis. The author has conducted a survey of industrial companies, at which point the most used advanced technologies are identified, the amount of investments and the investment pattern in digital transformation are analysed, as well as the purchase of foreign and domestic technologies, equipment and software by enterprises. The criteria for classifying digital business models used by production companies are formulated and two clusters are specified: platform-based business models and business models of “Factories of the future”. For the first time business models of digital transformation of companies in the Russian industry are specified: digital ecosystems, platforms for joint value co-creation, the introduction of a customising product, smart factory, remanufacturing and digital engineering. Digital transformation strategies used by industrial companies are specified for each cluster. The characteristics of digital transformation strategies are determined and the distribution of the strategies over manufacturing sectors are carried out.

Healthcare startups compete in new digital spaces: the lure of virtual specialties

PurposeThis study aims to explore the rise of virtual specialty care startups and understand how the ventures leverage digital services to create a new market space. Given the high level of competition in an established industry like health care, the authors investigate the business models and competitive strategies of leading virtual specialty care startups with unicorn status (i.e. emerging, current and exited unicorns).Design/methodology/approachThe authors performed an analysis of Crunchbase data to examine whether rising virtual care ventures target specialty care. They focused on companies from the USA, Europe and Asia-Pacific. The identified virtual specialty care ventures were investigated in-depth via a multiple case study. By reviewing corporate websites, Crunchbase data and media coverage, the authors analyzed the ventures’ business models and competitive strategies.FindingsThis study demonstrates that even in established and highly competitive markets such as health care, managers and entrepreneurs can still leverage digital services to unlock new market spaces. The data analysis reveals that virtual care startups target the field of specialty care. They create a new market space by focusing on fast access to services, personalization, measurable outcomes and affordability. The majority of investigated companies pursues a platform-based business model approach.Originality/valueIn the context of an established industry like health care, this study gives insights into a new generation of virtual specialty care ventures. By investigating the ventures’ business models and competitive strategies, the authors advance a young field of research.

Impact of opportunity and capability on e-entrepreneurial motivation: a comparison of urban and rural perspectives

Purpose E-entrepreneurship is developed based on digital platforms, having specific technical opportunities, such as the interactive ecosystem, fast payment method and online store function, without strict requirements for online entrepreneurs. Considering China’s e-entrepreneurship environment and cultural background, this paper aims to analyse individuals’ e-entrepreneurship motivation based on the capability–opportunity–motivation–behaviour (COM-B) behaviour changing theory. Design/methodology/approach Through testing 602 samples based on the partial least squares path modelling and variance-based structural equation modelling, the factors from the opportunity and capability units positively affect individuals’ e-entrepreneurship motivation. Meanwhile, because of the economic and social environmental differences between China’s urban and rural regions, this study promotes the multi-group analysis based on individuals’ regional backgrounds. Findings First, as opportunity factors, technical and policy opportunities have significantly positive relationships with individuals’ e-entrepreneurship motivation. Second, entrepreneurial and cultural capabilities are essential for Chinese entrepreneurs while making an entrepreneurial decision. Third, because of the e-entrepreneurial environment difference and educational system gap, entrepreneurial capability exerts a greater influence on the e-entrepreneurship motivation for Chinese individuals from urban regions, and cultural capability exerts a higher impact on the e-entrepreneurship motivation for Chinese individuals from rural regions. Originality/value Whilst the phenomenon of e-entrepreneurship is emerging as a popular entrepreneurship area of study, little research has systematically explored individuals’ e-entrepreneurial motivation and analysed influencing factors from macro and minor aspects. According to the COM-B behaviour changing theory, this paper discovers influencing factors from environmental opportunity and personal capability units, and it is helpful to present individuals’ attitudes to the platform-based business model.

The manufacturer’s trade-in partner choice and pricing in the presence of collection platforms

In recent years, collection platforms based on information technology and e-commerce have developed rapidly and, consequently, a platform-based business model is emerging. This study considers a manufacturer-led supply chain in which the manufacturer offers a trade-in service to the consumer through a downstream retailer. Currently, a collection platform appears in the market and joins the manufacturer’s supply chain. In this case, we investigate who the manufacturer should choose as a partner to offer the trade-in service to the consumer. This study also explores the manufacturer’s optimal pricing strategy and decisions based on uniform and differential pricing strategies. The results show that the manufacturer obtains more profit when the collection platform offers a trade-in program with a differential pricing strategy, and that the retailer earns no profit from reselling a used product. However, the collection platform always obtains profits from the resale of used products through the trade-in service. Moreover, the differential pricing strategy benefits the collection platform but adversely impacts the retailer when the cost of the new product is relatively low. From the government’s perspective, regulators should encourage collection platforms to positively participate in trade-in activities.

Dynamic Capabilities in Electrical Energy Digitalization: A Case from the Norwegian Ecosystem

This paper aims to identify the dynamic capabilities required for electrical energy service providers to transform toward a digital and platform-based business models in the context of the current energy transition. The paper contributes to two fields: Information systems in the domain of platforms ecosystems and digital services innovation through the usage of dynamic capabilities theoretical lens and the field of energy informatics in the domain of digital business models and service innovation. Through the case study approach we investigate the case of Norwegian electrical energy provider TrønderEnergi and how the company is moving toward a fully digital business model and how the company build the dynamic capabilities required for the digitalization era. Through semi-structured interviews, the study managed to identify several activities related to each capability and then classified these activities under three main activities, which are: sensing, seizing, and transforming, and then classified them into sub-capabilities and identified activities related to each sup capability. The paper concludes with managerial implications for practitioners and initiates an empirical extension for the dynamic capabilities theoretical lens.

Dimensões de competitividade na era das plataformas digitais

Study objective: While there is a consolidated view of the competitive dispositions under which traditional approaches to competitive advantage operate, there is no cohesive view of how this logic manifests itself in a scenario based on technology and digitization where digital platforms operate. Therefore, this study aimed to analyze what are the prevailing competitive dispositions in digital platforms.Methodology/Approach: this is an exploratory study, correlating the topics of digital platforms and competitive advantage through a literature review on the Web of Science database, presenting a sociometric analysis of the data and a synthesis of the main competitive dispositions in digital platforms.Originality/Relevance: despite the acknowledged inadequacy of traditional strategies to explain competitiveness in the context of digital platforms, the studies dedicated to discussing this issue are still limited, and the present study has contributed by extending the discussion and providing perspectives to this novel scenario. Main results: The results define certain differences between the competitive dispositions regarding traditional enterprises and platform-based business models. Among the new elements identified, the distinct focus of the value creation process, the centrality of a networked structure as well as the use of data, and interaction of a more heterogeneous set of participants are highlighted.Theoretical/methodological contributions: the present study contributes to the current debate by indicating a first effort to align and consolidate the competitive dimensions that present themselves in digital platforms, in comparison to what is known concerning traditional pipeline approaches. Moreover, by proposing a research agenda, the development of future studies is also assisted.

Platform-Based Business Models and Financial Inclusion: Policy Trade-Offs and Approaches

AbstractThree types of digital platforms are expanding in financial services: (i) fintech entrants; (ii) big tech firms; and (iii) increasingly, incumbent financial institutions with platform-based business models. These platforms can dramatically lower costs and thereby aid financial inclusion—but these same features can give rise to digital monopolies and oligopolies. Digital platforms operate in multisided markets and rely crucially on big data. This leads to specific network effects, returns to scale and scope, and policy trade-offs. To reap the benefits of platforms while mitigating risks, policy makers can: (i) apply existing financial, antitrust and privacy regulations, (ii) adapt old and adopt new regulations, combining an activity and entity-based approach, and/or (iii) provide new public infrastructures, such as digital identity and retail fast payment systems. These public infrastructures, as well as ex ante competition rules and data portability, are particularly promising. Yet to achieve their policy goals, central banks and financial regulators need to coordinate with competition and data protection authorities.

Digital Platforms in Manufacturing: Past, Present and Future

In this paper, we conducted a literature review of manufacturing and digital platform, examining 92 articles published between 1997 and 2022. In our study of the literature, we used the software HistCite and VOSviewer to conduct a quantitative analysis of bibliometric analysis. The results of our research show that there are 3 research fields: (i) platform-based new product development (ii) digital platform-based value co-creation (iii) digital platform-based business models. This paper compiled a list of the most prominent aspects in the manufacturing and digital platform literature, including leading countries, institutes, journals, authors, and articles. Finally, based on our analysis of the literature on manufacturing digital platforms, this paper summarized challenges and opportunities in these research fields.

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

Peer Reviewed Articles: Understanding VAT in Three-Party, Platform-Based Business Models: Which Party Is Supplying Which Service?

Three-party business models in which a platform operator intermediates between a supplier providing a service and a customer buying a service have become an important part of our daily lives. For purposes of European Value Added Tax (VAT), each transaction occurring as part of a three-party business model must be attributed to a ‘taxable’ person responsible for the VAT. Generally, suppliers may provide their services for VAT purposes as proprietary traders, undisclosed agents or disclosed agents, with varying VAT consequences. While there is little explicit case law specifying how to identify the two forms of agency, this article provides a framework for a distinction by building upon the case law of the European Court of Justice (ECJ), taking into consideration the economic and commercial reality of each case and placing particular emphasis on the view of the average consumer. To contribute to a more uniform approach in attributing supplies in three-party, platform-based business models, specifically, this article develops indicators for assessing the relevant facts and ascertaining the economic reality of a case. Lastly, this article provides a method for differentiating agents from providers of electronically supplied services under current EU VAT law. EU VAT law, Attribution of services, Platform economy, Three-party business models, Disclosed agency, Undisclosed agency, Electronically supplied services, ECJ’s ‘economic approach, View of the average consumer, Uniform interpretation of VAT law

SERVICE PRICING CHALLENGES ON SHARED PLATFORM: UBER INDIA VS DIDI CHUXING

One of the major outcomes of digitalization has been the advent of Platform based business models which are covered under the larger ambit of sharing economy. As resources in the digital age is being shared and focus of these new age companies are on building a new kind of business models, pricing becomes the key. Especially, service pricing and how the same will hold forth here in shared economy. The paper is an attempt to look at two contrast markets, China and India and to assess how the pricing is managed on shared platforms. For Didi Chuxing in China and Uber in India, the context of service pricing and how regulated versus unregulated markets operate. A conceptual framework at the end gives a possible direction to understand the dimension of service pricing in emerging markets.

Platform synergy and innovation speed of SMEs: The roles of organizational design and regional environment

The prevalence of platform-based business models, enabled by the advancements of digital technologies, has tremendously changed the way how individual firms innovate. This study seeks to understand the heterogeneity of innovation speed among SMEs acting as participant complementors in digital platform. Integrating a knowledge-based view with the recent research on platform synergy, this study explores the effects of two kinds of platform synergy (i.e. synergy with platform owners, and synergy with other complementors) have on the innovation speed of SMEs. The results suggest that platform owners and fellow complementors would furnish different sets of information and knowledge, which are complementary in nature. In addition, SMEs with different organizational structure and geographic locations may benefit differently from the two kinds of platform synergy. Our synergy-based explanations make an important theoretical contribution to the growing literature on platform ecosystem from a complementor’s perspective.