Measuring platform return on participation

Zoë Clements, Rashik Parmar and Llewellyn D.W. Thomas

Business Horizons, 2022, vol. 65, issue 2, 193-204

Abstract: While industry platforms can transform industries and drive the digital economy, little guidance exists to help managers decide which industry platform to join. Derived from industry research, we propose a six-step return-on-participation (ROP) method that enables managers to clearly and logically review how their firms are affected by a platform, what the benefits are, how current and future variable and fixed costs vary, as well as the often-hidden joining costs. We suggest this technique could also be used by managers to compare competing platforms and by platform owners to evaluate the attractiveness of their offerings.

Keywords: Industry platform; Return on participation; Return on investment; Platform onboarding (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:bushor:v:65:y:2022:i:2:p:193-204

DOI: 10.1016/j.bushor.2021.02.036

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