IDEAS home Printed from https://ideas.repec.org/a/bla/jomstd/v61y2024i6p2633-2661.html
   My bibliography  Save this article

Micro Entry Theory: Understanding the Drivers and Effects of the Entry of Micro Players in the Context of Digital Platforms

Author

Listed:
  • Rosario Silva
  • Oksana Gerwe

Abstract

Digital platforms have facilitated the entry into the market of micro players, a subcategory of specialists formed by individuals offering products and services on a very small scale. This study builds on previous research on micro players' entry, to formalize, validate, and expand a theory of micro entry that helps to explain the market dynamics when micro players use digital platforms to enter the market. We (1) examine how macro‐economic conditions influence the entry of micro players and specialists and (2) investigate the differential effects of the entry of micro players and specialists on the generalists' performance. Our setting is the accommodation industry in Spain, in which generalists are represented by dominant hotels and micro players and specialists by occasional and regular operators who entered the market through Airbnb. We find that the entry of micro players into the market through digital platforms is driven by high unemployment rates and platform legitimacy, factors that do not similarly influence the entry of specialists. Additionally, the results show that the entry of specialists decreases generalists' performance, while micro players' entry is complementary.

Suggested Citation

  • Rosario Silva & Oksana Gerwe, 2024. "Micro Entry Theory: Understanding the Drivers and Effects of the Entry of Micro Players in the Context of Digital Platforms," Journal of Management Studies, Wiley Blackwell, vol. 61(6), pages 2633-2661, September.
    • Handle: RePEc:bla:jomstd:v:61:y:2024:i:6:p:2633-2661
    DOI: 10.1111/joms.12987
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/joms.12987
    Download Restriction: no
    File URL: https://libkey.io/10.1111/joms.12987?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
    ---><---

    References listed on IDEAS

    as
    1. Timothy B. Folta & Frédéric Delmar & Karl Wennberg, 2010. "Hybrid Entrepreneurship," Management Science, INFORMS, vol. 56(2), pages 253-269, February.
    2. David B. Audretsch & Dirk Dohse & Annekatrin Niebuhr, 2015. "Regional unemployment structure and new firm formation," Papers in Regional Science, Wiley Blackwell, vol. 94, pages 115-138, November.
    3. Alessio Cozzolino & Gianmario Verona & Frank T. Rothaermel, 2018. "Unpacking the Disruption Process: New Technology, Business Models, and Incumbent Adaptation," Journal of Management Studies, Wiley Blackwell, vol. 55(7), pages 1166-1202, November.
    4. Gideon D. Markman & Peter Gianiodis & G. Tyge Payne & Christopher Tucci & Igor Filatotchev & Reddi Kotha & Eric Gedajlovic, 2019. "The Who, Where, What, How and When of Market Entry," Journal of Management Studies, Wiley Blackwell, vol. 56(7), pages 1241-1259, November.
    5. Brian T. McCann & Govert Vroom, 2010. "Pricing response to entry and agglomeration effects," Strategic Management Journal, Wiley Blackwell, vol. 31(3), pages 284-305, March.
    6. Paolo Aversa & Annelore Huyghe & Giulia Bonadio, 2021. "First Impressions Stick: Market Entry Strategies and Category Priming in the Digital Domain," Journal of Management Studies, Wiley Blackwell, vol. 58(7), pages 1721-1760, November.
    7. J. Cameron Verhaal & Jake D. Hoskins & Leif W. Lundmark, 2017. "Little Fish in a Big Pond: Legitimacy Transfer, Authenticity, and Factors of Peripheral Firm Entry and Growth in the Market Center," Strategic Management Journal, Wiley Blackwell, vol. 38(12), pages 2532-2552, December.
    8. Daniel Guttentag, 2015. "Airbnb: disruptive innovation and the rise of an informal tourism accommodation sector," Current Issues in Tourism, Taylor & Francis Journals, vol. 18(12), pages 1192-1217, December.
    9. Gideon D. Markman & Marvin Lieberman & Michael Leiblein & Li‐Qun Wei & Yonggui Wang, 2021. "The Distinctive Domain of the Sharing Economy: Definitions, Value Creation, and Implications for Research," Journal of Management Studies, Wiley Blackwell, vol. 58(4), pages 927-948, June.
    10. de Reuver, Mark & Sørensen, Carsten & Basole, Rahul C., 2018. "The digital platform: a research agenda," LSE Research Online Documents on Economics 80669, London School of Economics and Political Science, LSE Library.
    11. Hui Li & Kannan Srinivasan, 2019. "Competitive Dynamics in the Sharing Economy: An Analysis in the Context of Airbnb and Hotels," Marketing Science, INFORMS, vol. 38(3), pages 365-391, May.
    12. Ni Huang & Gordon Burtch & Yili Hong & Paul A. Pavlou, 2020. "Unemployment and Worker Participation in the Gig Economy: Evidence from an Online Labor Market," Information Systems Research, INFORMS, vol. 31(2), pages 431-448, June.
    13. Michael P. Murray, 2006. "Avoiding Invalid Instruments and Coping with Weak Instruments," Journal of Economic Perspectives, American Economic Association, vol. 20(4), pages 111-132, Fall.
    14. Min Liu & Filippo Carlo Wezel, 2015. "Davids Against Goliath? Collective Identities and the Market Success of Peripheral Organizations During Resource Partitioning," Organization Science, INFORMS, vol. 26(1), pages 293-309, February.
    15. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    16. Gawer, Annabelle, 2014. "Bridging differing perspectives on technological platforms: Toward an integrative framework," Research Policy, Elsevier, vol. 43(7), pages 1239-1249.
    17. Nerea Fernández & Pedro L. Marín, 1998. "Market Power and Multimarket Contact: Some Evidence from the Spanish Hotel Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 46(3), pages 301-315, September.
    18. Rodolphe Durand & Robert M. Grant & Tammy L. Madsen & David P. McIntyre & Arati Srinivasan, 2017. "Networks, platforms, and strategy: Emerging views and next steps," Strategic Management Journal, Wiley Blackwell, vol. 38(1), pages 141-160, January.
    19. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
    20. Chanchai Tangpong & Michael Abebe & Zonghui Li, 2015. "A Temporal Approach to Retrenchment and Successful Turnaround in Declining Firms," Journal of Management Studies, Wiley Blackwell, vol. 52(5), pages 647-677, July.
    21. Peter Johnson & Simon Parker, 1996. "Spatial Variations in the Determinants and Effects of Firm Births and Deaths," Regional Studies, Taylor & Francis Journals, vol. 30(7), pages 679-688.
    22. Baojun Jiang & Lin Tian, 2018. "Collaborative Consumption: Strategic and Economic Implications of Product Sharing," Management Science, INFORMS, vol. 64(3), pages 1171-1188, March.
    23. Markus Menz & Sven Kunisch & Julian Birkinshaw & David J. Collis & Nicolai J. Foss & Robert E. Hoskisson & John E. Prescott, 2021. "Corporate Strategy and the Theory of the Firm in the Digital Age," Journal of Management Studies, Wiley Blackwell, vol. 58(7), pages 1695-1720, November.
    24. Chiara Farronato & Andrey Fradkin, 2022. "The Welfare Effects of Peer Entry: The Case of Airbnb and the Accommodation Industry," American Economic Review, American Economic Association, vol. 112(6), pages 1782-1817, June.
    25. Michael T. Hannan & László Pólos & Glenn R. Carroll, 2007. "Language Matters, from Logics of Organization Theory: Audiences, Codes, and Ecologies," Introductory Chapters, in: Logics of Organization Theory: Audiences, Codes, and Ecologies, Princeton University Press.
    26. repec:bla:jindec:v:46:y:1998:i:3:p:301-15 is not listed on IDEAS
    27. John M. Mezias & Stephen J. Mezias, 2000. "Resource Partitioning, the Founding of Specialist Firms, and Innovation: The American Feature Film Industry, 1912–1929," Organization Science, INFORMS, vol. 11(3), pages 306-322, June.
    28. Hui Li & Yijin Kim & Kannan Srinivasan, 2022. "Market Shifts in the Sharing Economy: The Impact of Airbnb on Housing Rentals," Management Science, INFORMS, vol. 68(11), pages 8015-8044, November.
    29. Wei‐ping Wu, 2008. "Dimensions of Social Capital and Firm Competitiveness Improvement: The Mediating Role of Information Sharing," Journal of Management Studies, Wiley Blackwell, vol. 45(1), pages 122-146, January.
    Full references (including those not matched with items on IDEAS)

    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. Jan Frederic Nerbel & Markus Kreutzer, 2023. "Digital platform ecosystems in flux: From proprietary digital platforms to wide-spanning ecosystems," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-20, December.
    2. Yuliya Snihur & Gideon Markman, 2023. "Business Model Research: Past, Present, and Future," Journal of Management Studies, Wiley Blackwell, vol. 60(8), pages 1-14, December.
    3. Zeng, Jing & Mahdi Tavalaei, M. & Khan, Zaheer, 2021. "Sharing economy platform firms and their resource orchestration approaches," Journal of Business Research, Elsevier, vol. 136(C), pages 451-465.
    4. John A. Mathews, 2020. "Schumpeterian economic dynamics of greening: propagation of green eco-platforms," Journal of Evolutionary Economics, Springer, vol. 30(4), pages 929-948, September.
    5. Spring, Eva & Grossmann, Volker, 2013. "Does Bilateral Trust Affect International Movement of Goods and Labor?," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79956, Verein für Socialpolitik / German Economic Association.
    6. Maiga, Adam S., 2014. "Assessing self-selection and endogeneity issues in the relation between activity-based costing and performance," Advances in accounting, Elsevier, vol. 30(2), pages 251-262.
    7. Andreas Hein & Maximilian Schreieck & Tobias Riasanow & David Soto Setzke & Manuel Wiesche & Markus Böhm & Helmut Krcmar, 2020. "Digital platform ecosystems," Electronic Markets, Springer;IIM University of St. Gallen, vol. 30(1), pages 87-98, March.
    8. Jianwei Liu & Karen Xie & Wei Chen & Yong Liu & Yunlong Sun, 2023. "How incumbents beat disruption? Evidence from hotel responses to home sharing," Production and Operations Management, Production and Operations Management Society, vol. 32(9), pages 2758-2774, September.
    9. Guo Bai & S. Ramakrishna Velamuri, 2021. "Contextualizing the Sharing Economy," Journal of Management Studies, Wiley Blackwell, vol. 58(4), pages 977-1001, June.
    10. Jørgen Veisdal, 2020. "The dynamics of entry for digital platforms in two-sided markets: a multi-case study," Electronic Markets, Springer;IIM University of St. Gallen, vol. 30(3), pages 539-556, September.
    11. Eva Spring & Volker Grossmann, 2016. "Does bilateral trust across countries really affect international trade and factor mobility?," Empirical Economics, Springer, vol. 50(1), pages 103-136, February.
    12. Saeed Khanagha & Shahzad (Shaz) Ansari & Sotirios Paroutis & Luciano Oviedo, 2022. "Mutualism and the dynamics of new platform creation: A study of Cisco and fog computing," Strategic Management Journal, Wiley Blackwell, vol. 43(3), pages 476-506, March.
    13. repec:zbw:rwirep:0381 is not listed on IDEAS
    14. Kyriacou, Andreas & Morral-Palacín, Noemí, 2015. "Secessionism and the Quality of Government: Evidence from a Sample of OECD Countries," MPRA Paper 116307, University Library of Munich, Germany.
    15. Zahid Sarwar & Jingmei Gao & Adnan Khan, 2024. "Nexus of digital platforms, innovation capability, and strategic alignment to enhance innovation performance in the Asia Pacific region: a dynamic capability perspective," Asia Pacific Journal of Management, Springer, vol. 41(2), pages 867-901, June.
    16. Tobias Wulfert & Robert Woroch & Gero Strobel & Sarah Seufert & Frederik Möller, 2022. "Developing design principles to standardize e-commerce ecosystems," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(4), pages 1813-1842, December.
    17. Arndt R. Reichert, 2015. "Obesity, Weight Loss, and Employment Prospects: Evidence from a Randomized Trial," Journal of Human Resources, University of Wisconsin Press, vol. 50(3), pages 759-810.
    18. Christopher Khawand, 2015. "Air Quality, Mortality, and Perinatal Health: Causal Evidence from Wildfires," 2015 Papers pkh318, Job Market Papers.
    19. Shihong Zhang & Min-Jae Lee & Guanyu Chen & Jin-Sup Jung & Moon Hwan Cho, 2024. "Your Firm Needs a Sustainable Business Innovation Ecosystem," Sustainability, MDPI, vol. 16(24), pages 1-21, December.
    20. Blake D. Mathias & Annelore Huyghe & David W. Williams, 2020. "Selling your soul to the devil? The importance of independent ownership to identity distinctiveness for oppositional categories," Strategic Management Journal, Wiley Blackwell, vol. 41(13), pages 2548-2584, December.
    21. Cenamor, Javier, 2021. "Complementor competitive advantage: A framework for strategic decisions," Journal of Business Research, Elsevier, vol. 122(C), pages 335-343.

    More about this item

    Statistics

    Access and download statistics

    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:bla:jomstd:v:61:y:2024:i:6:p:2633-2661. 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: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0022-2380 .

    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.