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Quantity or quality? Value creation in two-sided platforms.
- Source :
-
Technology Analysis & Strategic Management . Feb2021, Vol. 33 Issue 2, p162-175. 14p. - Publication Year :
- 2021
-
Abstract
- Two-sided platforms emerged as a more common business model, mainly due to the spread of digital technologies. Economic literature suggests a 'quantity'-driven strategy to enhance the cross-side network externalities at the basis of the system. Nevertheless, the widespread of this business model lets emerge different peculiarities worth exploring. This research aims to examine the role of a 'quality'-driven strategy in welcoming players on the platforms' sides in the value perceived by the other side. The research is based on a qualitative study develop through eight case studies based on primary and secondary sources. Five of them let emerge a 'quantity'-driven strategy, while three of them a 'quality'-driven strategy, which is presented and discussed regarding the type of platforms. From a theoretical perspective, it distinguishes 'quantity'-driven from 'quality'-driven strategies in bringing players onboard on the platform, expanding the literature that considered quality as a main characteristic of the platform provider, rather than the players on it. Moreover, it suggests a strong link with the lifecycle phase. From a managerial perspective, it highlights operational tactics for both 'quantity'-driven and 'quality'-driven strategies and – more importantly – it suggests a possible integration of the two strategies. [ABSTRACT FROM AUTHOR]
- Subjects :
- *VALUE creation
*BUSINESS models
*EXTERNALITIES
Subjects
Details
- Language :
- English
- ISSN :
- 09537325
- Volume :
- 33
- Issue :
- 2
- Database :
- Academic Search Index
- Journal :
- Technology Analysis & Strategic Management
- Publication Type :
- Academic Journal
- Accession number :
- 148425597
- Full Text :
- https://doi.org/10.1080/09537325.2020.1804057