Exploring the Value drivers for Platform Based Business: Scaling, Organizing, Financing, Controlling & Leveraging Networks among Multiple Parties

Abstract

Platform-based business models have become increasingly popular in recent years. These models allow businesses to connect with customers in new and innovative ways, and they can offer several advantages over traditional channels. However, there is still a lack of understanding of the key value drivers that contribute to the success of platform-based business models. This study addresses this gap in the literature by conducting a two-step qualitative-empirical analysis to identify the value drivers of platform-based business models. In the first step, a systematic literature analysis (SLA) is conducted to outline the research landscape holistically and to identify existing value drivers. In the second step, data is collected from 15 expert interviews from Pakistani online platform-based companies to identify additional value drivers. The results of the study identify four categories of value drivers: Organization and scaling: the category includes factors such as the platform ecosystem, architecture, user acquisition, and willingness to participate. Financial performance: this category includes factors such as retention, performance-promise, resources, and abilities. Control mechanisms: the category includes factors such as pricing, performance measures, and behavioral control. Environment: This category includes factors such as technology and competition. The study also provides an overview of a large number of value drivers that have not been previously identified in the literature. These results can help platform operators in their strategic planning and can provide them with concrete measures for the successful implementation of a platform.