Two new papers on the platform economy and digitalization in the Journal of Business Research

IMCA Assistant Professor Gianluca Chimenti published two papers in the Journal of Business Research on the platform economy and digitalization, broadly conceived. Both papers argue that platforms are not just standalone firms but are evolving into infrastructures that underpin broader ecosystems across markets and sectors.

The first paper, co-authored with Johan Hagberg (Gothenburg University) and Luis Araujo (Manchester Alliance Business School), introduces a conceptual reflection on how digital platforms transition into infrastructure-like entities. It posits that platforms expand by developing integrated services and forming partnerships with third parties, including other platforms, which enhances their ability to support market practices across various sectors. This evolution signifies a shift from a traditional market-based system to what the authors term a "platform society", where economic processes increasingly depend on data, its collection, analysis, and the refinement of algorithms to optimize business models and data flows. Additionally, platform infrastructures are fundamentally different from traditional infrastructures in that they operate on much shorter development cycles, are highly programmable, and rely on a light asset base. This flexibility allows them to adapt rapidly to environmental changes. 

The second paper, co-authored with Udo Zander and Lixin Lu (Stockholm School of Economics), builds on this notion of platform evolution by focusing on the ecosystem dynamics within platform economies. It highlights the need for a deeper understanding of how platform ecosystems develop, emphasizing the co-constitutive relationships between actors within these ecosystems and how these relationships influence innovation, market dynamics, and society. The paper identifies four key tensions that drive ecosystem evolution: collaboration versus competition, core versus peripheral actors, value creation versus value capture, and global versus local dynamics. Adopting a socio-technical perspective, the authors argue that moderate levels of tension within these relationships are crucial for sustaining innovation and fostering the ongoing development of platforms and markets. However, the paper also warns that these tensions, if allowed to grow too extreme, due to market concentration, monopolistic practices, or geopolitical conflicts, could hinder innovation and the broader evolution of platform ecosystems. 

Both papers are available as open access using the following links.

https://www.sciencedirect.com/science/article/pii/S0148296324006714

https://www.sciencedirect.com/science/article/pii/S0148296324005411