IDEAS home Printed from https://ideas.repec.org/a/eee/jbvent/v38y2023i6s0883902623000605.html
   My bibliography  Save this article

From platform growth to platform scaling: The role of decision rules and network effects over time

Author

Listed:
  • Varga, Suzana
  • Cholakova, Magdalena
  • Jansen, Justin J.P.
  • Mom, Tom J.M.
  • Kok, Guus J.M.

Abstract

Although firms increasingly operate with platform-based business models, only a few have been shown to prosper and survive in the long run. While the literature has traditionally focused on platform growth along with facilitating network effects through value creation, our knowledge around platform scaling remained rather limited. Using an inductive theory elaboration approach with a longitudinal case study of a two-sided platform, Takeaway.com, we offer in-depth understanding about how the top management team members used decision rules to navigate emergent opportunities and challenges over time, and to transition from platform growth to platform scaling. We find that the top management team members purposefully and repeatedly use and revise a portfolio of decision rules to cultivate indirect and data network effects, which allows them to initially facilitate the growth of their platform and over time support the transition to scaling the platform. Our findings provide important implications about the distinct nature of platform growth and platform scaling, and the role of decision rules in cultivating a combination of network effects over time in order to arrive at platform scaling and ensure platform survival and prosperity over an extended period.

Suggested Citation

  • Varga, Suzana & Cholakova, Magdalena & Jansen, Justin J.P. & Mom, Tom J.M. & Kok, Guus J.M., 2023. "From platform growth to platform scaling: The role of decision rules and network effects over time," Journal of Business Venturing, Elsevier, vol. 38(6).
    • Handle: RePEc:eee:jbvent:v:38:y:2023:i:6:s0883902623000605
    DOI: 10.1016/j.jbusvent.2023.106346
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0883902623000605
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusvent.2023.106346?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

    for a different version of it.

    References listed on IDEAS

    as
    1. Satish Nambisan & Shaker A. Zahra & Yadong Luo, 2019. "Global platforms and ecosystems: Implications for international business theories," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(9), pages 1464-1486, December.
    2. Shaheer, Noman & Kim, Kijong & Li, Sali, 2022. "Internationalization of Digital Innovations: A Rapidly Evolving Research Stream," Journal of International Management, Elsevier, vol. 28(4).
    3. Geoffrey G. Parker & Marshall W. Van Alstyne, 2005. "Two-Sided Network Effects: A Theory of Information Product Design," Management Science, INFORMS, vol. 51(10), pages 1494-1504, October.
    4. Elizabeth Maitland & André Sammartino, 2015. "Managerial cognition and internationalization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 46(7), pages 733-760, September.
    5. Erik Brynjolfsson & Chris F. Kemerer, 1996. "Network Externalities in Microcomputer Software: An Econometric Analysis of the Spreadsheet Market," Management Science, INFORMS, vol. 42(12), pages 1627-1647, December.
    6. Venkatesh Shankar & Barry L. Bayus, 2003. "Network effects and competition: an empirical analysis of the home video game industry," Strategic Management Journal, Wiley Blackwell, vol. 24(4), pages 375-384, April.
    7. Christoph Zott, 2003. "Dynamic capabilities and the emergence of intraindustry differential firm performance: insights from a simulation study," Strategic Management Journal, Wiley Blackwell, vol. 24(2), pages 97-125, February.
    8. Alan M. Rugman & Alain Verbeke, 2005. "A Note on the Transnational Solution and the Transaction Cost Theory of Multinational Strategic Management," Chapters, in: Analysis of Multinational Strategic Management, chapter 2, pages 16-26, Edward Elgar Publishing.
    9. Keith D Brouthers & Kim Dung Geisser & Franz Rothlauf, 2016. "Explaining the internationalization of ibusiness firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 47(5), pages 513-534, June.
    10. Mihailova, Irina, 2023. "Business model adaptation for realized international scaling of born-digitals," Journal of World Business, Elsevier, vol. 58(2).
    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. Nicol, Christopher & Kostis, Angelos & Lidström, Johan & Holmström, Jonny, 2024. "Corporate incubation for platform growth and the transition to platform scaling: Between a rock and a hard place in the circular economy," Technological Forecasting and Social Change, Elsevier, vol. 208(C).
    2. Sanasi, Silvia, 2025. "Structuring experimentation: Implementing Growth Hacking in new ventures," Journal of Business Research, Elsevier, vol. 188(C).
    3. Fisher, Greg & Josefy, Matthew A. & Neubert, Emily, 2024. "Event-based entrepreneurship," Journal of Business Venturing, Elsevier, vol. 39(1).
    4. Coviello, Nicole & Autio, Erkko & Nambisan, Satish & Patzelt, Holger & Thomas, Llewellyn D.W., 2024. "Organizational scaling, scalability, and scale-up: Definitional harmonization and a research agenda," Journal of Business Venturing, Elsevier, vol. 39(5).
    5. Sanasi, Silvia & Ghezzi, Antonio & Cavallo, Angelo, 2023. "What happens after market validation? Experimentation for scaling in technology-based startups," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    6. Bie, Fan & Yang, Yifan & Shen, Hebin & Zhao, Qi, 2024. "Inclusive digital economy, resource dependence and changes in the urban energy mix: City level analysis from China," Resources Policy, Elsevier, vol. 92(C).

    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. Wu, Mian & (David) Liu, Yulong & Jasimuddin, Sajjad M. & (Justin) Zhang, Zuopeng, 2023. "Rethinking cross-border mobile payment ecosystems: A process study of mobile payment platform complementors, network effect holes and ecosystem modules," International Business Review, Elsevier, vol. 32(1).
    2. Kang, Zhengyao & Kou, Hongwei & Zhou, Di & Shi, Xinwei & Parente, Ronaldo & Rong, Ke, 2025. "Platform-based multinational corporations (PMNCs):A research agenda in the field of international business," International Business Review, Elsevier, vol. 34(3).
    3. Yang, Bo & Bai, Wensong & Chen, Yantai & Rong, Ke, 2025. "Internationalization of digital firms: A systematic review and research agenda," Journal of Business Research, Elsevier, vol. 189(C).
    4. Shaheer, Noman & Kim, Kijong & Li, Sali, 2022. "Internationalization of Digital Innovations: A Rapidly Evolving Research Stream," Journal of International Management, Elsevier, vol. 28(4).
    5. Appiah, Emmanuel Kusi & Gabrielsson, Peter & Rialp Criado, Alex, 2025. "The role of digitalization in early internationalization Research: A systematic literature review and future research directions," Journal of Business Research, Elsevier, vol. 186(C).
    6. Kevin J. Boudreau & Lars Bo Jeppesen & Milan Miric, 2022. "Competing on freemium: Digital competition with network effects," Strategic Management Journal, Wiley Blackwell, vol. 43(7), pages 1374-1401, July.
    7. Zeng, Jing & Khan, Zaheer & De Silva, Muthu, 2019. "The emergence of multi-sided platform MNEs: Internalization theory and networks," International Business Review, Elsevier, vol. 28(6), pages 1-1.
    8. Rong, Ke & Kang, Zhengyao & Williamson, Peter J., 2022. "Liability of ecosystem integration and internationalisation of digital firms," Journal of International Management, Elsevier, vol. 28(4).
    9. Liang Chen & Noman Shaheer & Jingtao Yi & Sali Li, 2019. "The international penetration of ibusiness firms: Network effects, liabilities of outsidership and country clout," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(2), pages 172-192, March.
    10. Daniel Birke, 2009. "The Economics Of Networks: A Survey Of The Empirical Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 23(4), pages 762-793, September.
    11. Hongryol Cha & Masaaki Kotabe & Jie Wu, 2023. "Reshaping Internationalization Strategy and Control for Global E-Commerce and Digital Transactions: A Hayekian Perspective," Management International Review, Springer, vol. 63(1), pages 161-192, February.
    12. Joost Rietveld & Melissa A. Schilling & Cristiano Bellavitis, 2019. "Platform Strategy: Managing Ecosystem Value Through Selective Promotion of Complements," Organization Science, INFORMS, vol. 30(6), pages 1232-1251, November.
    13. Jiatao Li & Liang Chen & Jingtao Yi & Jiye Mao & Jianwen Liao, 2019. "Ecosystem-specific advantages in international digital commerce," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(9), pages 1448-1463, December.
    14. Satish Nambisan & Yadong Luo, 2021. "Toward a loose coupling view of digital globalization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(8), pages 1646-1663, October.
    15. Cenamor, Javier, 2021. "Complementor competitive advantage: A framework for strategic decisions," Journal of Business Research, Elsevier, vol. 122(C), pages 335-343.
    16. Klaus E. Meyer & Chengguang Li & Andreas P. J. Schotter, 0. "Managing the MNE subsidiary: Advancing a multi-level and dynamic research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-39.
    17. Christian Stummer & Dennis Kundisch & Reinhold Decker, 2018. "Platform Launch Strategies," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 60(2), pages 167-173, April.
    18. Klaus E. Meyer & Jiatao Li & Keith D. Brouthers & Ruey-Jer ‘‘Bryan’’ Jean, 2023. "International business in the digital age: Global strategies in a world of national institutions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(4), pages 577-598, June.
    19. Adomako, Samuel & Amankwah-Amoah, Joseph & Tarba, Shlomo Y. & Khan, Zaheer, 2021. "Perceived corruption, business process digitization, and SMEs’ degree of internationalization in sub-Saharan Africa," Journal of Business Research, Elsevier, vol. 123(C), pages 196-207.
    20. Tobias Kretschmer, 2005. "Competing technologies in the database management systems market," Working Papers 05-17, NET Institute, revised Oct 2005.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    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:eee:jbvent:v:38:y:2023:i:6:s0883902623000605. 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/jbusvent .

    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.