IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v84y2018icp162-174.html
   My bibliography  Save this article

Peer-to-peer selling in online platforms: A salient business model for virtual entrepreneurship

Author

Listed:
  • Chandna, Vallari
  • Salimath, Manjula S.

Abstract

Although peer-to-peer (P2P) selling platforms enable entrepreneurs to set-up virtual businesses with relative ease, business models in P2P platforms remain an unexamined area. To address this gap, we use cross-disciplinary theory from marketing, strategic management, and business models to identify new value drivers in this context. Thus, this study makes an original contribution by developing and empirically testing components of a business model relevant to P2P platforms. Data from 366 virtual entrepreneurial firms was analyzed using structural equation modeling. Results highlight the significance of a holistic business model, that is, rather than their independent contribution, a synergistic combination of four value drivers (IPIN: Information processing capability, Product portfolio complexity, Innovative practices and Network membership) is critical to firm performance and satisfaction. The novelty lies in being the first to identify a salient business model in the P2P context that has practical and theoretical implications for virtual entrepreneurship.

Suggested Citation

  • Chandna, Vallari & Salimath, Manjula S., 2018. "Peer-to-peer selling in online platforms: A salient business model for virtual entrepreneurship," Journal of Business Research, Elsevier, vol. 84(C), pages 162-174.
    • Handle: RePEc:eee:jbrese:v:84:y:2018:i:c:p:162-174
    DOI: 10.1016/j.jbusres.2017.11.019
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296317304654
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2017.11.019?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Morris, Michael & Schindehutte, Minet & Allen, Jeffrey, 2005. "The entrepreneur's business model: toward a unified perspective," Journal of Business Research, Elsevier, vol. 58(6), pages 726-735, June.
    2. Abeba Nigussie Turi & Josep Domingo-Ferrer & David Sánchez & Dritan Osmani, 2017. "A co-utility approach to the mesh economy: the crowd-based business model," Review of Managerial Science, Springer, vol. 11(2), pages 411-442, March.
    3. Sunder Kekre & Kannan Srinivasan, 1990. "Broader Product Line: A Necessity to Achieve Success?," Management Science, INFORMS, vol. 36(10), pages 1216-1232, October.
    4. Jean-Charles Rochet & Jean Tirole, 2003. "Platform Competition in Two-Sided Markets," Journal of the European Economic Association, MIT Press, vol. 1(4), pages 990-1029, June.
    5. Cooper, Arnold C. & Artz, Kendall W., 1995. "Determinants of satisfaction for entrepreneurs," Journal of Business Venturing, Elsevier, vol. 10(6), pages 439-457, November.
    6. Gamble, Jordan Robert & Brennan, Michael & McAdam, Rodney, 2017. "A rewarding experience? Exploring how crowdfunding is affecting music industry business models," Journal of Business Research, Elsevier, vol. 70(C), pages 25-36.
    7. Sarstedt, Marko & Ringle, Christian M. & Smith, Donna & Reams, Russell & Hair, Joseph F., 2014. "Partial least squares structural equation modeling (PLS-SEM): A useful tool for family business researchers," Journal of Family Business Strategy, Elsevier, vol. 5(1), pages 105-115.
    8. Gruber, Marc, 2007. "Uncovering the value of planning in new venture creation: A process and contingency perspective," Journal of Business Venturing, Elsevier, vol. 22(6), pages 782-807, November.
    9. Kadiyali, Vrinda & Vilcassim, Naufel & Chintagunta, Pradeep, 1998. "Product line extensions and competitive market interactions: An empirical analysis," Journal of Econometrics, Elsevier, vol. 89(1-2), pages 339-363, November.
    10. Wiklund, Johan & Shepherd, Dean, 2005. "Entrepreneurial orientation and small business performance: a configurational approach," Journal of Business Venturing, Elsevier, vol. 20(1), pages 71-91, January.
    11. Melissa A. Schilling & Corey C. Phelps, 2007. "Interfirm Collaboration Networks: The Impact of Large-Scale Network Structure on Firm Innovation," Management Science, INFORMS, vol. 53(7), pages 1113-1126, July.
    12. Görling, Stefan & Rehn, Alf, 2008. "Accidental ventures--A materialist reading of opportunity and entrepreneurial potential," Scandinavian Journal of Management, Elsevier, vol. 24(2), pages 94-102, June.
    13. Rollins, Minna & Bellenger, Danny N. & Johnston, Wesley J., 2012. "Customer information utilization in business-to-business markets: Muddling through process?," Journal of Business Research, Elsevier, vol. 65(6), pages 758-764.
    14. Mary Ann Glynn & Michael Lounsbury, 2005. "From the Critics’ Corner: Logic Blending, Discursive Change and Authenticity in a Cultural Production System," Journal of Management Studies, Wiley Blackwell, vol. 42(5), pages 1031-1055, July.
    15. Kshetri, Nir, 2007. "Institutional factors affecting offshore business process and information technology outsourcing," Journal of International Management, Elsevier, vol. 13(1), pages 38-56, March.
    16. Saras Sarasvathy & Anil Menon & Graciela Kuechle, 2013. "Failing firms and successful entrepreneurs: serial entrepreneurship as a temporal portfolio," Small Business Economics, Springer, vol. 40(2), pages 417-434, February.
    17. Lee Cronbach, 1951. "Coefficient alpha and the internal structure of tests," Psychometrika, Springer;The Psychometric Society, vol. 16(3), pages 297-334, September.
    18. Tobias Kollmann & Patrick Krell, 2011. "Innovative Electronic Business: Current Trends and Future Potentials," International Journal of E-Entrepreneurship and Innovation (IJEEI), IGI Global, vol. 2(1), pages 16-25, January.
    19. Yanfei Li & Shuntian Yao & Wai‐Mun Chia, 2011. "Demand uncertainty, information processing ability, and endogenous firm," Nankai Business Review International, Emerald Group Publishing Limited, vol. 2(4), pages 447-474, October.
    20. Carina Eriksson & Thomas Kalling & Maria Åkesson & Tobias Fredberg, 2008. "Business Models for M-Services: Exploring the E-Newspaper Case from a Consumer View," Journal of Electronic Commerce in Organizations (JECO), IGI Global, vol. 6(2), pages 29-57, April.
    21. Min, Sungwook & Wolfinbarger, Mary, 2005. "Market share, profit margin, and marketing efficiency of early movers, bricks and clicks, and specialists in e-commerce," Journal of Business Research, Elsevier, vol. 58(8), pages 1030-1039, August.
    22. Myriam DAVIDOVICI-NORA, 2014. "Paid and Free Digital Business Models Innovations in the Video Game Industry," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(94), pages 83-102, 2nd quart.
    23. Wang, Guangping & Dou, Wenyu & Zhu, Weichun & Zhou, Nan, 2015. "The effects of firm capabilities on external collaboration and performance: The moderating role of market turbulence," Journal of Business Research, Elsevier, vol. 68(9), pages 1928-1936.
    24. George P. Huber, 1991. "Organizational Learning: The Contributing Processes and the Literatures," Organization Science, INFORMS, vol. 2(1), pages 88-115, February.
    25. Howard S. Rasheed, 2009. "Contrasting E-Commerce Business Models: Performance Implications For Small Enterprises," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 14(01), pages 89-101.
    26. Henry Kaiser, 1974. "An index of factorial simplicity," Psychometrika, Springer;The Psychometric Society, vol. 39(1), pages 31-36, March.
    27. Seth Norton, 2004. "Information Processing in the Theory of the Firm: The Rise of General Motors," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 11(2), pages 123-140.
    28. Hubert, Marco & Florack, Arnd & Gattringer, Rafael & Eberhardt, Tim & Enkel, Ellen & Kenning, Peter, 2017. "Flag up! – Flagship products as important drivers of perceived brand innovativeness," Journal of Business Research, Elsevier, vol. 71(C), pages 154-163.
    29. Hartman, Sandra & Lundberg, Olof & White, Michael & Barnett, Tim, 1995. "Information processing techniques in planning: An investigation of preferences of executive planners," Journal of Business Research, Elsevier, vol. 33(1), pages 13-24, May.
    30. Hoang, Ha & Antoncic, Bostjan, 2003. "Network-based research in entrepreneurship: A critical review," Journal of Business Venturing, Elsevier, vol. 18(2), pages 165-187, March.
    31. Shafer, Scott M. & Smith, H. Jeff & Linder, Jane C., 2005. "The power of business models," Business Horizons, Elsevier, vol. 48(3), pages 199-207.
    32. Deng, Ziliang & Wang, Zeyu, 2016. "Early-mover advantages at cross-border business-to-business e-commerce portals," Journal of Business Research, Elsevier, vol. 69(12), pages 6002-6011.
    33. Yang, Zhiyong & Wang, Jingguo & Mourali, Mehdi, 2015. "Effect of peer influence on unauthorized music downloading and sharing: The moderating role of self-construal," Journal of Business Research, Elsevier, vol. 68(3), pages 516-525.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shaheer, Noman Ahmed & Li, Sali, 2020. "The CAGE around cyberspace? How digital innovations internationalize in a virtual world," Journal of Business Venturing, Elsevier, vol. 35(1).
    2. Jingbo Hu & Taohua Ouyang & William X. Wei & Jiawei Cai, 2020. "How Do Manufacturing Enterprises Construct E-Commerce Platforms for Sustainable Development? A Case Study of Resource Orchestration," Sustainability, MDPI, vol. 12(16), pages 1-18, August.
    3. Alexander Frey & Manuel Trenz & Daniel Veit, 2019. "A service-dominant logic perspective on the roles of technology in service innovation: uncovering four archetypes in the sharing economy," Journal of Business Economics, Springer, vol. 89(8), pages 1149-1189, December.
    4. Delacroix, Eva & Parguel, Béatrice & Benoit-Moreau, Florence, 2019. "Digital subsistence entrepreneurs on Facebook," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 887-899.
    5. Kapoor, Kawaljeet & Ziaee Bigdeli, Ali & Dwivedi, Yogesh K. & Schroeder, Andreas & Beltagui, Ahmad & Baines, Tim, 2021. "A socio-technical view of platform ecosystems: Systematic review and research agenda," Journal of Business Research, Elsevier, vol. 128(C), pages 94-108.
    6. Tran, Lobel Trong Thuy, 2021. "Managing the effectiveness of e-commerce platforms in a pandemic," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    7. Laura Lucia-Palacios & Victoria Bordonoba-Juste & Raúl Pérez-López, 2021. "Consumer-to-consumer reselling adoption among European countries: differences between old and young millennials," Service Business, Springer;Pan-Pacific Business Association, vol. 15(2), pages 253-279, June.
    8. E. Mitchell Church & Richelle L. Oakley, 2018. "Etsy and the long-tail: how microenterprises use hyper-differentiation in online handicraft marketplaces," Electronic Commerce Research, Springer, vol. 18(4), pages 883-898, December.
    9. Telma Mendes & Carina Silva & Alexandra Braga, 2023. "Dancing with Giants: A Unified Framework for Cooperation Networks, Speed of Internationalisation, and Performance," Sustainability, MDPI, vol. 15(3), pages 1-32, January.
    10. Liu, Yihui & Wu, Aiqi & Song, Di, 2022. "Exploring the Impact of Cross-side Network Interaction on Digital Platforms on Internationalization of Manufacturing Firms," Journal of International Management, Elsevier, vol. 28(4).
    11. Lu, Isabel Fangyi & Wang, Lili, 2022. "Relational platform entrepreneurs: live commerce and the 818 Jiazu," LSE Research Online Documents on Economics 115155, London School of Economics and Political Science, LSE Library.
    12. Zhou, Michael & Leenders, Mark A.A.M. & Cong, Ling Mei, 2018. "Ownership in the virtual world and the implications for long-term user innovation success," Technovation, Elsevier, vol. 78(C), pages 56-65.
    13. Newaz, Md Tarique & Chandna, Vallari & Dass, Mayukh & Arnett, Dennis, 2023. "Using R-A theory and the optimal distinctiveness perspective to understand the strategic marketing approaches used by platform-based organizations: The cases of Facebook and Twitter in digital ecosyst," Journal of Business Research, Elsevier, vol. 167(C).
    14. Wanyue Wei & Zheng He & Lez Rayman-Bacchus & GuangMing Xiang, 2019. "Do Industrial Clusters Still Matter to Trust-Building in the Internet Era? A Network Embeddedness Perspective," SAGE Open, , vol. 9(3), pages 21582440198, August.
    15. Suria Abu Basar & Noor Ayuernie Ibrahim & Fazilah Tamsir & Asma Rina Abdul Rahman & Noor Nasyikin Mohd Zain & Halimi Poniran & Rina Fadhilah Ismail, 2024. "I-FinTech Adoption Mediation on the Financial Literacy Elements and Sustainable Entrepreneurship among Bumiputera MSMEs in Malaysia," International Journal of Economics and Financial Issues, Econjournals, vol. 14(4), pages 138-147, July.
    16. Budler, Marko & Župič, Ivan & Trkman, Peter, 2021. "The development of business model research: A bibliometric review," Journal of Business Research, Elsevier, vol. 135(C), pages 480-495.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cinzia Battistella & Gianluca Murgia & Fabio Nonino, 2021. "Free-driven web-based business models," Electronic Commerce Research, Springer, vol. 21(2), pages 445-486, June.
    2. Lambert, Susan C. & Davidson, Robyn A., 2013. "Applications of the business model in studies of enterprise success, innovation and classification: An analysis of empirical research from 1996 to 2010," European Management Journal, Elsevier, vol. 31(6), pages 668-681.
    3. Chandna, Vallari & Salimath, Manjula S., 2020. "When technology shapes community in the Cultural and Craft Industries: Understanding virtual entrepreneurship in online ecosystems," Technovation, Elsevier, vol. 92.
    4. Yuan Jing, 2022. "The Relationship Between Business Model Innovation and Operational Performance of Incubator Enterprise," International Journal of Science and Business, IJSAB International, vol. 16(1), pages 153-191.
    5. Covin, Jeffrey G. & Garrett, Robert P. & Kuratko, Donald F. & Shepherd, Dean A., 2015. "Value proposition evolution and the performance of internal corporate ventures," Journal of Business Venturing, Elsevier, vol. 30(5), pages 749-774.
    6. Katharina Fellnhofer & Kaisu Puumalainen & Helena Sjögrén, 0. "Entrepreneurial orientation in work groups – effects of individuals and group characteristics," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-37.
    7. Katharina Fellnhofer & Kaisu Puumalainen & Helena Sjögrén, 2017. "Entrepreneurial orientation in work groups – effects of individuals and group characteristics," International Entrepreneurship and Management Journal, Springer, vol. 13(2), pages 427-463, June.
    8. Clinton, Eric & McAdam, Maura & Gamble, Jordan Robert, 2018. "Transgenerational entrepreneurial family firms: An examination of the business model construct," Journal of Business Research, Elsevier, vol. 90(C), pages 269-285.
    9. Jeffrey G. Covin & Robert P. Garrett Jr. & Jyoti P. Gupta & Donald F. Kuratko & Dean A. Shepherd, 2018. "The Interdependence of Planning and Learning among Internal Corporate Ventures," Entrepreneurship Theory and Practice, , vol. 42(4), pages 537-570, July.
    10. Weizhen Yu & Shuanping Dai & Feng Liu & Yi Yang, 2023. "Matching disruptive innovation paths with entrepreneurial networks: a new perspective on startups’ growth with Chinese evidence," Asian Business & Management, Palgrave Macmillan, vol. 22(3), pages 878-902, July.
    11. Agnes Asemokha & Jackson Musona & Lasse Torkkeli & Sami Saarenketo, 2019. "Business model innovation and entrepreneurial orientation relationships in SMEs: Implications for international performance," Journal of International Entrepreneurship, Springer, vol. 17(3), pages 425-453, September.
    12. Miaomiao Yin & Asghar Afshar Jahanshahi, 2018. "Developing Knowledge-Based Resources: The Role of Entrepreneurs’ Social Network Size and Trust," Sustainability, MDPI, vol. 10(10), pages 1-15, September.
    13. Ciampi, Francesco & Demi, Stefano & Magrini, Alessandro & Marzi, Giacomo & Papa, Armando, 2021. "Exploring the impact of big data analytics capabilities on business model innovation: The mediating role of entrepreneurial orientation," Journal of Business Research, Elsevier, vol. 123(C), pages 1-13.
    14. Moser, Roger & Kuklinski, Christian Paul Jian-Wei & Srivastava, Mohit, 2017. "Information processing fit in the context of emerging markets: An analysis of foreign SBUs in China," Journal of Business Research, Elsevier, vol. 70(C), pages 234-247.
    15. Singh, Sonal H. & Bhowmick, Bhaskar & Eesley, Dale & Sindhav, Birud, 2021. "Grassroots innovation and entrepreneurial success: Is entrepreneurial orientation a missing link?," Technological Forecasting and Social Change, Elsevier, vol. 164(C).
    16. Robert P. Garrett Jr. & Jeffrey G. Covin, 2015. "Internal Corporate Venture Operations Independence and Performance: A Knowledge–Based Perspective," Entrepreneurship Theory and Practice, , vol. 39(4), pages 763-790, July.
    17. Schilling, Melissa A. & Green, Elad, 2011. "Recombinant search and breakthrough idea generation: An analysis of high impact papers in the social sciences," Research Policy, Elsevier, vol. 40(10), pages 1321-1331.
    18. Mara Del Baldo & Maria-Gabriella Baldarelli, 2017. "Renewing and improving the business model toward sustainability in theory and practice," International Journal of Corporate Social Responsibility, Springer, vol. 2(1), pages 1-13, December.
    19. Massa, Silvia & Testa, Stefania, 2011. "Beyond the conventional-specialty dichotomy in food retailing business models: An Italian case study," Journal of Retailing and Consumer Services, Elsevier, vol. 18(5), pages 476-482.
    20. Jonas Hammerschmidt & Fabian Eggers & Sascha Kraus & Paul Jones & Matthias Filser, 2020. "Entrepreneurial orientation in sports entrepreneurship - a mixed methods analysis of professional soccer clubs in the German-speaking countries," International Entrepreneurship and Management Journal, Springer, vol. 16(3), pages 839-857, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:84:y:2018:i:c:p:162-174. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.