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Platform Economy As An Inevitable Development Of Digital Business

Author

Listed:
  • Elena Stavrova

    (South-west university "Neofit Rilski", Blagoevgrad, Faculty of Economics)

  • Dinka Zlateva

    (South-west university "Neofit Rilski", Blagoevgrad, Faculty of Economics)

  • Lubomira Pinelova

    (South-west university "Neofit Rilski", Blagoevgrad, Faculty of Economics)

Abstract

The growth of digital platforms generates strong network effects and dynamics of all winners, which disrupts systemic growth and further stimulates competition between them. Despite the positive effects, under certain conditions, these same functions make the currently operating platforms vulnerable to competitive strategic moves through platforms where participants can add value for themselves and at the same time avoid pre-investment in value added generation. In this analysis, we use an interpretive synthesis of different theoretical concepts of platform business to theorize these strategies as a new category and their distinctive features. Overall, the study demonstrates the potential for unconventional and opportunistic strategies to compete on platforms that extend beyond more traditional ones, such as network quality, diversity and size.

Suggested Citation

  • Elena Stavrova & Dinka Zlateva & Lubomira Pinelova, 2021. "Platform Economy As An Inevitable Development Of Digital Business," Entrepreneurship, Faculty of Economics, SOUTH-WEST UNIVERSITY "NEOFIT RILSKI", BLAGOEVGRAD, vol. 9(1), pages 87-95.
    • Handle: RePEc:neo:epjour:v:9:y:2021:i:1:p:87-95
    DOI: 10.37708/ep.swu.v9i1.8
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    References listed on IDEAS

    as
    1. West, Joel, 2003. "How open is open enough?: Melding proprietary and open source platform strategies," Research Policy, Elsevier, vol. 32(7), pages 1259-1285, July.
    2. Michael G. Jacobides & Carmelo Cennamo & Annabelle Gawer, 2018. "Towards a theory of ecosystems," Strategic Management Journal, Wiley Blackwell, vol. 39(8), pages 2255-2276, August.
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    More about this item

    Keywords

    platform economy; business models; digital ecosystem;
    All these keywords.

    JEL classification:

    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • M29 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Other

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