Leveraging Value Creation to Drive the Growth of B2B Platforms

26 Pages Posted: 6 Dec 2021 Last revised: 21 Mar 2022

See all articles by Edward G. Anderson

Edward G. Anderson

University of Texas at Austin - Department of Information, Risk and Operations Management

Jose Lopez

MIT Sloan School

Geoffrey Parker

Dartmouth College

Date Written: March 17, 2022

Abstract

Platforms are ubiquitous, and their adoption is on the rise in the business to business (B2B) world. However, economic theory characterizing the drivers their adoption has lagged. In the few cases where B2B platforms have been explicitly examined, it is often assumed that they can be understood using principles developed from the study of business to consumer (B2C) platforms. However, the two types of platforms have important differences that often require different managerial policies. To address this gap, we apply a value creation lens, grounded in theory, that creates a better understanding of the dynamics of platform creation and growth by separating the platform’s value into three components: (1) the standalone value of the product, such as a smartphone’s ability to take pictures, (2) the value of other participants on the platform, such as the number of friends on Facebook or Instagram, and (3) the value created by complementary products from 3rd-party providers, such as apps for a smartphone. A dynamic perspective explores the trajectory of differences in value between B2B and B2C platforms along with managerial implications.

Keywords: Platforms, Business to Business, Value Creation, Launch, Scale

JEL Classification: m11, m15, O33, L23

Suggested Citation

Anderson, Edward G. and Lopez, Jose and Parker, Geoffrey, Leveraging Value Creation to Drive the Growth of B2B Platforms (March 17, 2022). Available at SSRN: https://ssrn.com/abstract=3975711 or http://dx.doi.org/10.2139/ssrn.3975711

Edward G. Anderson

University of Texas at Austin - Department of Information, Risk and Operations Management ( email )

CBA 5.202
Austin, TX 78712
United States
512-471-6394 (Phone)
512-471-3937 (Fax)

HOME PAGE: http://ed@edanderson.org

Jose Lopez

MIT Sloan School ( email )

S.No.124, Paud Road, Kothrud, Pune, 411038
Pune, Maharashtra 411038
India
617-253-1000 (Phone)

Geoffrey Parker (Contact Author)

Dartmouth College ( email )

School of Engineering
Hanover, NH 03755
United States
603-646-9075 (Phone)

HOME PAGE: http://engineering.dartmouth.edu/people/faculty/geoffrey-parker

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