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Digital Platform Strategies and Profitability—The Role of Strategy Type and Chief Digital Officers

In: Digital Innovation and Organizational Transformation

Author

Listed:
  • Yongli Huang

    (Universität Innsbruck, Department of Information Systems, Production and Logistics Management)

  • Maximilian Schreieck

    (Universität Innsbruck, Department of Information Systems, Production and Logistics Management)

  • Yiwen Gao

    (Clemson University, Wilbur O. and Ann Powers College of Business)

  • Jason B. Thatcher

    (University of Colorado Boulder, Leeds School of Business)

Abstract

While companies in the IT industry—particularly the big tech companies—have profited from digital platform strategies, whether companies across industries al-so benefit from such strategies remains contested. Focusing on the S&P1500 companies, we show that digital platform strategies positively affect a company’s profitability, albeit after a lag of several years. To further explore the relationship between digital platform strategies and profitability, we considered the impact of the type of digital platform strategy and the presence of a chief digital officer (CDO). First, the positive effect of a digital platform strategy is stronger for companies that implement the digital platform organically (“build strategy”) rather than for companies that acquire a platform (“buy strategy”). Second, the presence of a CDO positively moderates the effect of digital platform strategy in the long but not in the short run. Overall, implementing digital platforms is not a quick-win strategy for companies, but it requires careful consideration.

Suggested Citation

  • Yongli Huang & Maximilian Schreieck & Yiwen Gao & Jason B. Thatcher, 2026. "Digital Platform Strategies and Profitability—The Role of Strategy Type and Chief Digital Officers," Lecture Notes in Information Systems and Organization, in: Christoph M. Flath & Gunther Gust & Frédéric Thiesse & Axel Winkelmann (ed.), Digital Innovation and Organizational Transformation, pages 171-188, Springer.
    • Handle: RePEc:spr:lnichp:978-3-032-08483-5_12
    DOI: 10.1007/978-3-032-08483-5_12
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