 The Resource‐Based View of Competitive Advantage in Two‐Sided MarketsMingchun Sun and Edison Tse Journal of Management Studies, 2009, vol. 46, issue 1, 45-64 Abstract: abstract Using two‐sided markets as a specific market context, we show that cross‐group network effects can turn the participants of a two‐sided network into critical resources. In two‐sided markets such as payment cards and personal computer operating systems, two groups of agents interact with each other via a common network platform; the value of joining the network for agents in one group depends on the number of participants in the other group. In these markets, resource heterogeneity is represented by different sizes of existing networks; resource accumulation possesses all five characteristics of asset‐stock accumulation summarized by Dierickx and Cool. The unique resource accumulation process provides an isolating mechanism for large networks to sustain their resource and competitive advantages. Using two dynamic systems models, we show that resource heterogeneity (i.e. varying initial network sizes) is a source of sustained competitive advantage for two‐sided networks and has significant impact on long‐term competition dynamics. The findings illustrate the importance of incorporating market context in the research of the resource‐based view of competitive advantage. Date: 2009 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:jomstd:v:46:y:2009:i:1:p:45-64 Ordering information: This journal article can be ordered from Access Statistics for this article Journal of Management Studies is currently edited by Timothy Clark, Steven W. Floyd and Mike Wright More articles in Journal of Management Studies from Wiley Blackwell |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.