Investigating the mix of strategic choices and performance of transaction platforms: Evidence from the crowdfunding setting

Dushnitsky, Gary; Piva, Evila; Rossi‐Lamastra, Cristina

doi:10.1002/smj.3163

Cited by 56 publications

(49 citation statements)

References 115 publications

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“…For example, Facebook prohibited Vine, a short-form video sharing app, from accessing Facebook's friend-finding API after Vine was acquired by Twitter, so as to prevent exploitative behaviors from its competitor (Gawer, 2020). Another line of research focuses on how charging access fees to complementors serves as a filter to weed out low-quality complementors (Dushnitsky, Piva, & Rossi-Lamastra, 2020;Hossain, Minor, & Morgan, 2011;Song, Chen, & Li, 2021).…”

Section: Access Controlmentioning

confidence: 99%

Governance and Design of Digital Platforms: A Review and Future Research Directions on a Meta-Organization

Liang

Tong²,

Tang³

et al. 2021

Journal of Management

127

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The burgeoning digital-platforms literature across multiple business disciplines has primarily characterized the platform as a market or network. Although the organizing role of platform owners is well recognized, the literature lacks a coherent approach to understanding organizational governance in the platform context. Drawing on classic organizational governance theories, this paper views digital platforms as a distinct organizational form where the mechanisms of incentive and control routinely take center stage. We systematically review research on digital platforms, categorize specific governance mechanisms related to incentive and control, and map a multitude of idiosyncratic design features studied in prior research onto these mechanisms. We further develop an integrative framework to synthesize the review and to offer novel insights into the interrelations among three building blocks: value, governance, and design. Using this framework as a guide, we discuss specific directions for future research and offer a number of illustrative questions to help advance our knowledge about digital platforms’ governance mechanisms and design features.

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Section: Access Controlmentioning

confidence: 99%

Governance and Design of Digital Platforms: A Review and Future Research Directions on a Meta-Organization

Liang

Tong²,

Tang³

et al. 2021

Journal of Management

127

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show abstract

“…Chen, Fan and Li (2016) compare eBay and Taobao to draw conclusions about when a brokerage model (eBay) will be more or less successful than an advertising model (Taobao). Similarly, Dushnitsky, Piva, and Rossi-Lamastra (in press) examine strategy choices of transaction platforms in crowdfunding and observe that firms cluster around constellations of strategies (e.g., transaction fees vs. subscriptions, symmetric vs. asymmetric pricing on different sides of the platform, offering a variety of services vs. pursuing a narrow scope) that align together.…”

Section: Themes In Platform Competition Researchmentioning

confidence: 99%

Platform Competition: A Systematic and Interdisciplinary Review of the Literature

Rietveld

Schilling

2020

Journal of Management

226

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Over the past three decades, platform competition—the competition between firms that facilitate transactions and govern interactions between two or more distinct user groups who are connected via an indirect network—has attracted significant interest from the fields of management and organizations, information systems, economics, and marketing. Despite common interests in research questions, methodologies, and empirical contexts by scholars from across these fields, the literature has developed mostly in isolated fashion. This article offers a systematic and interdisciplinary review of the literature on platform competition by analyzing a sample of 333 articles published between 1985 and 2019. The review contributes by (a) documenting how the literature on platform competition has evolved; (b) outlining four themes of shared scholarly interest, including how network effects generate “winner-takes-all” dynamics that influence strategies, such as pricing and quality; how network externalities and platform strategy interact with corporate-level decisions, such as vertical integration or diversification into complementary goods; how heterogeneity in the platform and its users influences platform dynamics; and how the platform “hub” orchestrates value creation and capture in the overall ecosystem; and (c) highlighting several areas for future research. The review aims to facilitate a broader understanding of the platform competition research that helps to advance our knowledge of how platforms compete to create and capture value.

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“…For some, ECF represents a dramatic new opportunity for early stage entrepreneurial funding while for others the dangers of inappropriate investor choices and fraud loom large (Cumming & Hornuf, 2018). The rapid expansion in the number of platforms and the amounts raised (Dushnitsky et al, 2016;Dushnitsky et al, 2020;Estrin et al, 2018) suggests that ECF is managing to exploit new technologies to fill a gap in the market. We aimed to analyze how platforms are doing so.…”

Section: Future Research Directions and Implicationsmentioning

confidence: 99%

Soft and hard information in equity crowdfunding: network effects in the digitalization of entrepreneurial finance

2021

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As a digital financial innovation, equity crowdfunding (ECF) allows investors to exploit the complementarity of information provision and network effects in a reduced transaction cost environment. We build on the underlying distinction between soft and hard information and show that ECF platforms create an environment of greater information pooling that benefits from network externalities. We test our hypotheses using a unique proprietary dataset and find that soft information has a greater impact than hard on the likelihood that a financing pitch will be successful. Moreover, the effects of soft information are amplified by the size of the investor network on the platform and network size also positively moderates the effect of information on the amount invested during each pitch. We conclude that ECF platforms can successfully exploit low transaction costs of the digital environment and bring network externalities to bear on investor decisions. Taken together that these increase the supply of funds to entrepreneurs.

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Investigating the mix of strategic choices and performance of transaction platforms: Evidence from the crowdfunding setting

Cited by 56 publications

References 115 publications

Governance and Design of Digital Platforms: A Review and Future Research Directions on a Meta-Organization

Governance and Design of Digital Platforms: A Review and Future Research Directions on a Meta-Organization

Platform Competition: A Systematic and Interdisciplinary Review of the Literature

Soft and hard information in equity crowdfunding: network effects in the digitalization of entrepreneurial finance

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