The dynamics of entry for digital platforms in two-sided markets: a multi-case study

Jørgen Veisdal ()
Additional contact information
Jørgen Veisdal: Norwegian University of Science and Technology

Electronic Markets, 2020, vol. 30, issue 3, No 9, 539-556

Abstract: Abstract Motivating buyers and sellers to join an empty platform is thought to be a key challenge for firms attempting to launch digital platforms in two-sided markets. According to predictions from extant literature, ’no one joins until everyone joins’. The phenomenon is often referred to as the “chicken-and-egg problem”. This study investigates the phenomenon in an exploratory multi-case study of ten startup technology firms operating digital platforms in two-sided markets. The study finds that the firms entered their markets using a variety of strategies distinguishable by strategic, relational and temporal factors. A conceptual framework is proposed which distinguishes the firms’ strategies along these dimensions. In addition, a cross-case discussion of the dynamics of the firms’ strategies is provided. Deductively, the findings contribute to establishing an empirical grounding for predictions from extant literature. Inductively, the findings contribute preliminary managerial implications as well as propositions for further research on entry strategies for digital platforms in two-sided markets.

Keywords: Multi-sided platforms; Case study research; Entry; Networks & ecosystems; Business models; Strategy execution; L86; Information and Internet Services; Computer Software (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://link.springer.com/10.1007/s12525-020-00409-4 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:elmark:v:30:y:2020:i:3:d:10.1007_s12525-020-00409-4

Ordering information: This journal article can be ordered from
http://www.springer. ... ystems/journal/12525

DOI: 10.1007/s12525-020-00409-4

Access Statistics for this article

Electronic Markets is currently edited by Rainer Alt and Hans-Dieter Zimmermann

More articles in Electronic Markets from Springer, IIM University of St. Gallen
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().