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Multi-sided platforms in B2B contexts : the role of affiliation costs and interdependencies in adoption decisions

Author

Listed:
  • Patrick Loux

    (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie)

  • Mathilde Aubry

    (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie)

  • Sébastien Tran

    (PULV - Pôle Universitaire Léonard de Vinci)

  • Emmanuel Baudoin

    (LITEM - Laboratoire en Innovation, Technologies, Economie et Management (EA 7363) - UEVE - Université d'Évry-Val-d'Essonne - Université Paris-Saclay - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris], IMT-BS - MMS - Département Management, Marketing et Stratégie - TEM - Télécom Ecole de Management - IMT - Institut Mines-Télécom [Paris] - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris])

Abstract

Multi-sided platforms, enabling interactions between different user sides, hold an important place in the contemporary economy. Current literature, focusing on established and successful platforms, has neglected to study B2B multi-sided platform adoption mechanisms. In this article, we analyze these mechanisms by investigating the case of dematerialization platforms for B2B transactions between the multiple actors involved in public works contracts. Various qualitative materials, including 28 semi-structured interviews, were gathered over a thirty-month period. Adopting a business user perspective, this study contributes to the literature on multi-sided platforms in various ways. We show that platform adoption, in project-based B2B contexts, is mainly constrained by a high level of affiliation costs and the existence of tight-interdependencies between users' activities at project level. Thus, a consecutive adoption path would result in negative cross-group network externalities and undermine the platform's attractiveness. Conversely, a concurrent adoption path would activate positive network externalities and encourage platform adoption decisions.

Suggested Citation

  • Patrick Loux & Mathilde Aubry & Sébastien Tran & Emmanuel Baudoin, 2020. "Multi-sided platforms in B2B contexts : the role of affiliation costs and interdependencies in adoption decisions," Post-Print hal-02376313, HAL.
    • Handle: RePEc:hal:journl:hal-02376313
    DOI: 10.1016/j.indmarman.2019.07.001
    Note: View the original document on HAL open archive server: https://hal.science/hal-02376313
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    References listed on IDEAS

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    1. Zhou, Liying & Mao, Hongyi & Zhao, Taiyang & Wang, Valerie Lynette & Wang, Xiaodong & Zuo, Peng, 2022. "How B2B platform improves Buyers’ performance: Insights into platform’s substitution effect," Journal of Business Research, Elsevier, vol. 143(C), pages 72-80.
    2. Oliver Rossmannek, 2022. "When do service suppliers leave their platform?—The role of friendships," Review of Managerial Science, Springer, vol. 16(5), pages 1311-1334, July.
    3. Ruben Tessmann & Ralf Elbert, 2022. "Multi-sided platforms in competitive B2B networks with varying governmental influence – a taxonomy of Port and Cargo Community System business models," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(2), pages 829-872, June.
    4. Ruben Tessmann & Ralf Elbert, 2022. "A multilevel, multi-mode framework for standardization in digital B2B platform eco-systems in international cargo transportation—A multiple case study," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(4), pages 1843-1875, December.
    5. Wei, Ruiqi & Wang, Xinchun & Chang, Yu, 2021. "The effects of platform governance mechanisms on customer participation in supplier new product development," Journal of Business Research, Elsevier, vol. 137(C), pages 475-487.
    6. Su, Jingqin & Zhang, Yajie & Wu, Xianyun, 2023. "How market pressures and organizational readiness drive digital marketing adoption strategies' evolution in small and medium enterprises," Technological Forecasting and Social Change, Elsevier, vol. 193(C).

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