Understanding platform market value through decentralization governance — An integrative model from signaling and mechanism design theory

Phong Thanh Nguyen and Linh Thi My Nguyen

Technological Forecasting and Social Change, 2022, vol. 183, issue C

Abstract: Although previous research has provided insights into the direct effects of platform decentralization governance on market value, scholars have failed to theorize and empirically examine the mediating mechanisms through which platform decentralization governance transfers into increased or decreased market value. This article draws on signaling (Spence, 1973) and mechanism design theory (Hurwicz, 1973) to provide a theoretical understanding of how voluntary disclosures and developers' activities mediate the relationship between platform decentralization and market value. We test our model with a sample of 682 largest market capitalization blockchain platforms. The results confirm our proposed mediation relationships that (1) centralization (or low decentralization) governance enhances platform market value via more voluntary disclosures, (2) decentralization enhances platform market value via facilitating developers' activities, and (3) centralization enhances market value via more voluntary disclosures that in turn facilitate developers' activities. Overall, our study offers both theoretical and practical implications regarding the governance structures that drive value for digital and blockchain platforms.

Keywords: Platform decentralization governance; Platform market value; Voluntary disclosures; Developers' activities; Signaling theory; Mechanism design theory; Blockchain (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:tefoso:v:183:y:2022:i:c:s0040162522004358

DOI: 10.1016/j.techfore.2022.121913

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