مطالعات مدیریت راهبردی (Mar 2024)
Capabilities and innovation enablers of the value proposition of actors in platform businesses
Abstract
IntroductionThe emergence of digital platforms is increasing as a result of technology development [4]. Although organizations consider digital platforms as a very important way to achieve technological innovation, the platform companies themselves also need innovation to be the leader and achieve a superior competitive position in the market, because digital platform capability is only one capability that alone cannot directly affect the company's competitive advantage and innovation, and this capability requires "activating some activities" that affect innovative functions through performing "specific behaviors"[3]. In this regard, despite the fact that researches have been conducted in the field of capabilities that affect value proposition innovation [5, 6], the enablers capabilities of value proposition innovation, especially in the context of the platform, have not been comprehensively addressed. In order to emphasize this matter, [1] emphasized that there are limited researches regarding the drivers and consequences of value proposition innovation. Based on this gap in the existing literature, the question is raised as to what capabilities platforms can use to innovate the value proposition of actors. In fact, this research, with a comprehensive look at platform capabilities, seeks to identify capabilities that can enable the innovation of value proposition of the platform actors.Methodology In order to develop theory in the context of the platform's value proposition, this study was conducted using an exploratory approach. The paradigm of the current research is interpretative and among the various interview-based qualitative research strategies, thematic analysis was chosen in this study to discover the views of the respondents/informants. In order to provide relevant and extensive information about the subject under study, theoretical and targeted sampling was used both for platform selection and expert selection. Then, semi-structured and in-depth interviews were conducted with managers, consultants and owners of 12 platform companies including platform managers and consultants. Finally, the data were analyzed in three stages (open, axial and selective coding).Results and Discussion Platform capabilities are classified into three capability categories according to the multiple actors participating in platform businesses. This means that the main actors of each platform, i.e. platform owners, customers or users on the demand side and suppliers and providers of products and services on the supply side, each have capabilities that each of these capabilities can be considered as an enabler of value proposition innovation. The capabilities of the platform include marketing capabilities, technology infrastructure capabilities, value proposition alignment capabilities, market sensing capabilities, crowdsourcing capabilities, and big data analysis capabilities. Knowledge sharing/management capabilities, adaptability and digital proficiency skills are among the demand side capabilities and finally relational capabilities, continuous quality improvement, networking and market learning are among the supply side capabilities that companies can use to create value proposition innovation. Conclusion Like other businesses, platform leaders face not only ongoing opportunities but also competitive pressures to innovate. Therefore, in the face of almost constant changes and innovative pressures in the current business environment in which digital platforms operate, innovation capabilities and a sense of opportunities and threats are essential [2]. But since platforms are not like traditional businesses and as their name (multi- sided platforms) suggests, they are dependent on different parties or groups for their survival, the concept of value and innovative value should also be considered for different groups because of their nature. It is such that without applying such a comprehensive view, innovation will also fail. Therefore, the current research has addressed these capabilities as drivers and enablers of value innovation. The results showed that in order to achieve value innovation, multiple actors including platform owners, suppliers of products and services (supply side) and customers or end users (supply side) must have the capabilities to be able to engage in joint innovation. Some of these capabilities directly contribute to innovation. For example, among platform capabilities that include marketing capabilities, information technology infrastructure, aligning the value proposition of actors, market sensing, crowdsourcing, and big data analysis, it seems that information technology infrastructure capabilities, market sensing , crowdsourcing and big data analysis lead directly to innovation while, the other two cases enable value innovation through creating trust and increasing engagement of different actors. Customers, in turn, should be equipped with capabilities such as the ability to adapt to platform businesses through training and gaining awareness and receiving consulting services, digital skills through the acquisition of media literacy skills, and the ability to produce digital content in order to participate in Innovation as well as the ability to manage/share knowledge so that they can take effective steps in this direction by gaining more awareness. Finally, service providers, especially by strengthening the capability of continuous quality improvement and market learning, directly create innovation, and communication and networking capabilities are considered to be their enablers in the path of value innovation.
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