Assimilation and Diffusion of Multi-Sided Platforms in Dynamic B2B Networks: Inhibiting Factors and Their Consequences

Spurred on by increasing digitalization and the rise of technology companies such as Facebook, Airbnb or Uber, multi-sided platforms (MSPs) have become increasingly important in a wide range of industries in recent years. In general, MSPs represent an electronic marketplace in which two or more groups of actors interact, and the decisions of individual actors influence the decision-making behavior of the remaining actors. Due to their distributed nature and their interdependencies with institutions, markets, and technologies, MSPs depict unique, new socio-technical artifacts and therefore present researchers with an exciting and challenging research object. Previous research on MSPs have predominantly taken a pro-innovative perspective and have accumulated a vast knowledge base on factors that promote the success of MSPs. However, the triumphant growth and success of MSPs, such as Airbnb or Uber, represent the exception rather than the rule. Most multi-sided platforms are struggling hard to stay viable and often lose this battle. Failure of an MSP can result in massive financial damage for companies, which is revealed, for example, by the $4 billion collapse of General Electric's "Predix" platform. Existing technology diffusion and adoption models provide only anecdotal evidence to the failure of MSPs, which is why knowledge of factors that inhibit the diffusion of MSPs is particularly important. Scholars, therefore, call for a comprehensive and systematic investigation of factors inhibiting the diffusion of MSPs as well as for the development of new or the extension of existing technology diffusion and adoption models to increase their explanatory and predictive validity. Network effects are a key characteristic and a crucial driver for the diffusion of MSPs. The impacts of diffusion-inhibiting factors on network effects have only been superficially examined in previous research. In contrast, the beneficial influence of network effects in the case of one- or two-sided platforms in conventional market relations between businesses and consumers (e.g., game consoles or service platforms such as Airbnb) has been thoroughly investigated. However, dependencies and areas of tension, which mainly occur in the diffusion of technology within or between different organizations (company to company context, B2B), have been neglected. Furthermore, case studies have often analyzed MSPs where management and ownership are carried out by a single organization. Nowadays, however, organizations are no longer isolated. They create their values together and act in corporate networks. As a result, the highly complex management structure within these networks can also influence the diffusion of multi-sided platforms. Dynamic B2B networks are characterized by intensive cooperation between loosely connected organizations in a fast-changing environment with a high degree of uncertainty. The organizations operating in the network are dependent on the rapid exchange of information with their competitors and are therefore in a co-operative and competing business relationship with them at the same time. The management structure within a dynamic B2B network is shared, the goods or services produced are easily interchangeable and are provided by several organizations. Although MSPs have been developed specifically for the interaction of different actors and offer a fast exchange of information between multiple organizations, the diffusion of these systems in dynamic B2B networks is particularly challenging. In summary, MSPs depict new socio-technical information system artifacts that have so far been examined from a pro-innovative perspective. Their manifold interdependencies with institutions, markets, and technologies lead to a highly complex diffusion process in which, among others, internal and external organizational factors, as well as the individuals' pre- and post-adoption behavior must be taken into account. Previous research cannot provide sufficient explanation for why MSPs fail, especially in dynamic B2B networks where a large number of organizations operate dynamically in an environment with frequently changing business relationships. Motivated by the limited explanatory and predictive validity of existing technology diffusion and adoption models for the investigation of multi-sided platforms in dynamic B2B networks, this thesis will examine factors inhibiting the diffusion of MSPs as well as their impact on network effects and on individuals’ pre- and post-adoption behavior. For this purpose, five studies have been conducted to systematically illuminate various partial aspects of the diffusion of MSPs. The first study (Article 1) identified 21 factors that inhibit the diffusion of MSPs in dynamic B2B networks. The second study (Article 2) examined the influence of these 21 inhibiting factors on network effects, which depict main drivers for the diffusion of MSPs. Studies three to five (Articles 3 - 5) each consider the influence of a specific inhibitory factor on individuals' pre- and post-adoption behavior. In detail, article 3 examines the extent to which specific technological features (factor functionalities) influence trust in technology and subsequently, the adoption of the technology. Article 4 examines the extent to which causal attributions (factor blaming other actors) influence users' information system continuance intention. Finally, article 5 analyses the extent to which users' continuance intention is influenced by the personality trait resistance to change (factor spirit of innovations). Taken together, this thesis provides a deeper and more comprehensive understanding of the diffusion of MSPs in dynamic B2B networks. The systematical and comprehensive investigation of factors inhibiting the diffusion of MSPs in dynamic B2B networks contributes to answering various calls for research. By analyzing the relationships between factors inhibiting diffusion and network effects, this thesis contributes to research at the interface between platform and technology diffusion research. Alongside these contributions to research, each of the five articles contained an in-depth and comprehensive discussion on contributions to research and practice.