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Multi-sided platform diffusion in competitive B2B networks: inhibiting factors and their impact on network effects

Author

Listed:
  • Sören Wallbach

    (TU Darmstadt)

  • Katrin Coleman

    (TU Darmstadt)

  • Ralf Elbert

    (TU Darmstadt)

  • Alexander Benlian

    (TU Darmstadt)

Abstract

Although multi-sided platforms (MSPs) and their diffusion in B2C contexts received heightened attention in recent literature, there is still a dearth of research on MSP diffusion inhibitors in competitive B2B networks. Using the air cargo hub in Frankfurt, Germany, as highly competitive B2B network which struggles with the acceptance of an MSP for over 10 years, we applied a grounded theory approach to identify key inhibitors to MSP diffusion. Based on several interviews with a diverse set of stakeholders and a systematic coding procedure, we identified 21 factors inhibiting MSP diffusion. The majority of these factors slows down or even thwarts positive network effects, typically occurring on MSPs. Furthermore, we derive a classification showing that the inhibiting factors primarily hamper cross-side network effects in highly competitive B2B networks, and to a lesser degree also same-side and mixed-side network effects. Finally, implications of these results and future research directions are discussed.

Suggested Citation

  • Sören Wallbach & Katrin Coleman & Ralf Elbert & Alexander Benlian, 2019. "Multi-sided platform diffusion in competitive B2B networks: inhibiting factors and their impact on network effects," Electronic Markets, Springer;IIM University of St. Gallen, vol. 29(4), pages 693-710, December.
    • Handle: RePEc:spr:elmark:v:29:y:2019:i:4:d:10.1007_s12525-019-00382-7
    DOI: 10.1007/s12525-019-00382-7
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    8. Tessmann, R. & Elbert, R., 2022. "Multi sided platforms in competitive B2B networks with varying governmental influence – a taxonomy of Port and Cargo Community System business models," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 132320, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
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    More about this item

    Keywords

    Multi-sided platform; Diffusion; Inhibiting factors; Network effects; Case study; Air cargo;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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