Using R-A theory and the optimal distinctiveness perspective to understand the strategic marketing approaches used by platform-based organizations: The cases of Facebook and Twitter in digital ecosystems

Md Tarique Newaz, Vallari Chandna, Mayukh Dass and Dennis Arnett

Journal of Business Research, 2023, vol. 167, issue C

Abstract: Drawing on R-A theory and the optimal distinctiveness perspective, we explore the marketing strategies of two platform-based organizations (PBOs) that provide users the ability to build social networks/relationships with others, and marketers the opportunity to communicate with users and access user data. Using a longitudinal dataset (2010–2017) containing 360 market offerings and 39 acquisitions of Facebook and Twitter, we benchmark one PBO against another under temporal contingency. Our analysis reveals that PBOs that cater to multiple stakeholders in digital ecosystems use service innovations as part of their conformity (legitimacy argument of institutional theory) efforts and ecosystem facilitation as part of their differentiating (unique positioning and competitive distinction argument of strategic management) efforts. In addition, we find that PBOs that can better use their digital ecosystems for structural flexibility, controlled structural integrity, shared worldview, and reduced cognitive dissonance are likely to outperform those who do not. We discuss the implications of this research for PBOs, different user groups utilizing such PBOs. We conclude with a discussion on our contributions to the optimal distinctiveness perspective and R-A theory.

Keywords: Institutional theory; Optimal distinctiveness; Resource-advantage theory; Service innovations; Platform-based organizations (PBOs); Digital ecosystem (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0148296323005519
Full text for ScienceDirect subscribers only

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:eee:jbrese:v:167:y:2023:i:c:s0148296323005519

DOI: 10.1016/j.jbusres.2023.114192

Access Statistics for this article

Journal of Business Research is currently edited by A. G. Woodside

More articles in Journal of Business Research from Elsevier
Bibliographic data for series maintained by Catherine Liu ().