PLATFORM ECONOMY AS AN INEVITABLE DEVELOPMENT OF DIGITAL BUSINESS

Elena Stavrova (), Dinka Zlateva () and Lubomira Pinelova ()
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Elena Stavrova: South-west university "Neofit Rilski", Blagoevgrad, Faculty of Economics
Dinka Zlateva: South-west university "Neofit Rilski", Blagoevgrad, Faculty of Economics
Lubomira Pinelova: South-west university "Neofit Rilski", Blagoevgrad, Faculty of Economics

Entrepreneurship, 2021, vol. 9, issue 1, 87-95

Abstract: The growth of digital platforms generates strong network effects and dynamics of all winners, which disrupts systemic growth and further stimulates competition between them. Despite the positive effects, under certain conditions, these same functions make the currently operating platforms vulnerable to competitive strategic moves through platforms where participants can add value for themselves and at the same time avoid pre-investment in value added generation. In this analysis, we use an interpretive synthesis of different theoretical concepts of platform business to theorize these strategies as a new category and their distinctive features. Overall, the study demonstrates the potential for unconventional and opportunistic strategies to compete on platforms that extend beyond more traditional ones, such as network quality, diversity and size.

Keywords: platform economy; business models; digital ecosystem (search for similar items in EconPapers)
JEL-codes: M20 M21 M29 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:neo:epjour:v:9:y:2021:i:1:p:87-95

DOI: 10.37708/ep.swu.v9i1.8

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