How can traditional service enterprises achieve platform innovation? – An exploratory longitudinal case study

Purpose - For the basic problems on platform innovation, such as platform innovation connotation and characteristics, the driving mechanism and the influence mechanism are less been studied. This study aims to explore how to achieve platform innovation in traditional service enterprises. Design/methodology/approach - Based on the theory of enterprise network and binary learning, respectively, this paper discusses the behavior of binary learning based on network structure and network impact on efficiency and innovative platform innovation, and analyzed the realization of the platform innovation path. Findings - The research draws the following conclusions: the network structure-based exploitative learning can promote the efficiency platform innovation, while the network behavior-based exploratory learning can promote the novelty platform innovation. The interaction between network structure and network behavior embedded in traditional services is more conducive to exploratory learning so as to promote novelty platform innovation, and the platform innovation of traditional service enterprises is a process from efficiency-oriented to novelty-oriented. The innovation effect generated by exploratory learning based on network behavior is much higher than that generated by exploitative learning based on network structure. The theoretical contributions of this study are as follows: first, this study compares the similarities and differences between service innovation of platform-oriented enterprises and platform innovation of service enterprises. On this basis, it clearly defines the concept of platform innovation and divides it into two categories: efficiency platform innovation and novelty platform innovation. Second, it reveals the two paths for traditional service enterprises to realize platform innovation, and the interaction between these two paths are also explored, which promotes the scenario-based and dynamic study of platform innovation in traditional service enterprise. The conclusion of this study provides theoretical reference for traditional service enterprises to carry out platform innovation. Originality/value - Theoretical contribution of this paper lies in: first, the concept of platform innovation is clearly defined. Current research about platform innovation is mainly around the innovation of platform enterprise and the platform innovation of traditional enterprise, but there is no document that makes clear distinction; some literature even equates innovation of platform enterprise with platform innovation of traditional enterprise. In this paper, through a detailed literature review and analysis, clearly define the concept of platform innovation and divided into efficiency platform innovation and novel platform innovation, which has made theoretical contribution to the depth of the research. Second, expand the platform innovation research of traditional service industry. In recent years, the platform innovation research of traditional enterprise has become a hot spot, but they focus on the attention of the platform transformation of traditional manufacturing industry, such as Haier; the traditional service industries seem to be “empty,” but, in fact, the traditional service industry platform innovation is of great significance and more worth looking forward to. In this paper, the longitudinal case studies can promote academic concerns focus on the traditional service industry, and also provides the theory instruction practice. Third, it promotes the platform innovation research of traditional enterprise and dynamic analysis. Based on the theory of enterprise network and binary learning, respectively, it discusses the behavior of binary learning based on network structure and network impact on efficiency and innovative platform innovation, and analyzed the realization of the platform innovation path. On the one hand, it enriches the research type of platform innovation; on the other hand, the dynamic evolution mechanism of platform innovation research can make up for the deficiency of the existing literature.