When and Who Do Platform Companies Acquire?

Milan Miric, Margherita Pagani () and Omar El Sawy
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Milan Miric: USC - University of Southern California
Margherita Pagani: EM - EMLyon Business School
Omar El Sawy: USC - University of Southern California

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Abstract: The success of platform companies often depends on their ability to "scale" their customer and supplier base. Existing studies have focused on a variety of approaches that platforms may use to scale but have not systematically considered that platforms might acquire other companies as part of this growth strategy. In this paper, we study the acquisition patterns of digital platformcompanies and contrast these with the acquisition patterns of digital non-platformcompanies. We find that platform companies acquire earlier (shortly after founding) when compared with non-platform companies, and they often first acquire competing platform companies from the same market niche. As platform companies mature, they begin to acquire non-platform companies from other market niches. This contrasts with how acquisitions are made by non-platform companies, as shown in our analysis.

Keywords: Acquisitions; scaling digital platform companies; double helix framework; digital platform ecosystem (search for similar items in EconPapers)
Date: 2021-11-01
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Citations: View citations in EconPapers (5)

Published in MIS Quarterly, 2021, 45 (4), 2159-2174 p. ⟨10.25300/MISQ/2022/16374⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03188254

DOI: 10.25300/MISQ/2022/16374

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