Value creation in the 4IR Millennials and Digital Multisided Platforms (MSPs)
Main Article Content
Keywords
Consumer-dominant logic, customer experience, digital multisided platforms, millennials, brands, value creation
Abstract
Value creation in the 4IR is customer-centric, interactive and hyper-personalised. Real-time consumer brand experiences, interactions and relations can be transformed into quantifiable data that can be monitored and tracked (‘datafication’). This study theorises that platform ecosystems, including millennials, converge on digital multisided platforms (MSPs), which are sociotechnical constructs that foment and generate significant value for platform owners and users. As value creation has risen as a digital economy business imperative, and a subject for academic research, the importance of millennials to brands warrants further investigation. This study aims to show how the interplay of social relations between millennials and brands, along with technology, are used to create value from the millennials’ perspective. To this end, it uses a consumer-dominant logic to explain and predict novel connections between key value creation constructs by millennial prosumers, including sole-creation, co-creation, collaboration, value destruction, value depreciation and value co-destruction. It presents three propositions that reimagine fit-for-purpose brands as interoperable constructs which exhibit complementarity, as well as the social dynamics of millennial interaction on digital MSPs. Findings indicate a cyclical value-interdependent relational system between millennials and brands, where millennial interaction leads to the creation or destruction of value. It also demonstrates how brands and platform owners can collaborate with millennials as an important and technologically savvy generation to co-create, capture and communicate value on digital MSPs.
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References
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Oh, P., & Monge, P. (2016). Network theory and models. pp. 1-15. https://doi.org/10.1002/9781118766804.wbiect246
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Schreieck, M., Hein, A., Wiesche, M., & Krcmar, H. (2018). The challenge of governing digital platform ecosystems. In C. Linnhoff-Popien, R. Schneider, & M. Zaddach (Eds.), Digital Marketplaces Unleashed (pp. 527–538). Berlin, Heidelberg: Springer. https://doi.org/10.1007/978-3-662-49275-8_47
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Staykova, K., & Damsgaard, J. (2018). Introducing a platform interactions model for studying multisided platforms. 51st Hawaii International Conference on System Sciences. (pp. 5024- 5033). Honolulu, HI 96822: the University of Hawai’i at Manoa. https://doi.org/10.24251/HICSS.2018.627
Subramaniam, M. (2020). Digital ecosystems and their implications for competitive strategy. Journal of Organisational Design, 9(12). https://doi.org/10.1186/s41469-020-00073-0
Teece, D. J. (2018). Business models and dynamic capabilities. Long range planning, 40-49. https://doi.org/10.1016/j.lrp.2017.06.007
Tian, J., Shen, L., & Chen, Y. (2017). A study on customer prosumption concept and its impact on enterprise value co-creation. Theoretical Economics Letters, 7(7), 2040-2053. https://doi.org/10.4236/tel.2017.77138
Tiwana, A. (2014). Chapter 5 - Platform architecture. In A. Tiwana, & M. Kaufmann (Eds.), Platform ecosystems: aligning architecture, governance, and strategy (pp. 73-116). https://doi.org/10.1016/B978-0-12-408066-9.00005-9.
Veisdal, J. (2020). The dynamics of entry for digital platforms in two-sided markets: a multi-case study. Electron Markets(30), 539–556. https://doi.org/10.1007/s12525-020-00409-4
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Yablonsky, S. (2020). A multidimensional platform ecosystem framework. Kybernetes, 49(7), 2003-2035. https://doi.org/10.1108/K-07-2019-0447
Alderete, M. V. (2017). The age of prosumerism: some microeconomic analysis. Journal of theoretical and applied electronic commerce research, 12(3), 1-12. https://doi.org/10.4067/S0718-18762017000300002
Ardolino, M., Saccani, N., Adrodega, F., & Perona, M. (2020). A business model framework to characterise digital multisided platforms. Journal of Open Innovation: Technology, Market, and Complexity, 6(1), 1-23. https://doi.org/10.3390/joitmc6010010
Arvidsson, A. (2014). The logic of the brand. Papers of the Department of Sociology and Social Research; 36. Trento: University of Trento. Department of Sociology and Social Research. Available from: http://www.unitn.it/sociologia/8701/quaderni-del-d...
Avgeropoulos, S., Sammut-Bonnici, T., & McGee, J. (2015). Complementary products. Wiley Encyclopedia of Management, 12. https://doi.org/10.1002/9781118785317.weom120105
Belleflamme, P. (2020, April 14). An introduction to the economics of platform competition – Part 2. Retrieved from IPdigIT logoIP & IT at your fingertips: http://www.ipdigit.eu/2020/04/an-introduction-to-the-economics-of-platform-competition-part-2/
Bond, A. J., Widdop, P., Cockayne, D., & Parnell, D. (2020). Prosumption, networks and value during a global pandemic: lockdown leisure and COVID-19. Leisure Sciences, 43(1-2), 1-8. https://doi.org/10.1080/01490400.2020.1773985
Burgess, J., & Woodford, D. (2015). Content creation and curation. The international encyclopedia of digital communication and society, 1-6. https://doi.org/10.1002/9781118767771.wbiedcs112
Casadesus‐Masanell, R., & Zhu, F. (2013). Business model innovation and competitive imitation: The case of sponsor‐based business models. Strategic management journal, 34(4), 464-482. https://doi.org/10.1002/smj.2022
Caschili, S., Medda, F. R., & Wilson, A. (2015). An interdependent multi-layer model: Resilience of international networks. Networks and Spatial Economics, 15, 313–335. https://doi.org/10.1007/s11067-014-9274-2
Cohen, N. (2013). Chapter 13 Commodifying free labour online: social media, audiences, and advertising. In E. West, & M. P. McAllister (Eds.), The Routledge Companion to Advertising and Promotional Culture (pp. 177-191). Routledge.
Couldry, N., Rodriguez, C., Bolin, G., Cohen, J., Volkmer, I., Goggin, G., . . . Wasserman, H. (2018). Media, communication and the struggle for social progress. Global Media and Communication, 14(2), 173-191. https://doi.org/10.1177/1742766518776679
Dubé, J. P., Hitsch, G. J., & Chintagunta, P. K. (2010). Tipping and concentration in markets with indirect network effects. Marketing Science, 29(2), 216-249. https://doi.org/10.1287/mksc.1090.0541
Eckhardt, J. T., Ciuchta, M. P., & Carp, M. (2018). Open innovation, information, and entrepreneurship within platform ecosystems. Strategic entrepreneurship journal, 12(3), 369-391. https://doi.org/10.1002/sej.1298
Evans, D. S., & Schmalensee, R. (2017). Multisided platforms. In M. Vernengo, E. P. Caldentey, & B. J. Rosser Jr (Eds.), The New Palgrave Dictionary of Economics. London: Palgrave Macmillan. https://doi.org/10.1057/978-1-349-95121-5
Gallagher, S., Mastrogiorgio, A., & Petracca, E. (2019). Economic reasoning and interaction in socially extended market institutions. Frontiers in psychology, 1856. https://doi.org/10.3389/fpsyg.2019.01856
Gasser, U. (2016, July 6). Interoperability in the digital ecosystem. https://doi.org/10.2139/ssrn.2639210
Glimsteddt, H. (2017). Digital platforms: a critical review of core concepts. In S. M. Per Andersson (Ed.), Managing digital transformations.
Hagiu, A., & Yoffie, D. B. (2016). Network effects. In M. Augier, & D. Teece (Eds.), The Palgrave Encyclopedia of Strategic Management. London.: Palgrave Macmillan. https://doi.org/10.1057/978-1-349-94848-2_552-1
Hein, A., Schreieck, M., Riasanow, T., Setzke, D. S., Wiesche, M., Böhm, M., & Krcmar, H. (2020). Digital platform ecosystems. Electronic Markets, 30, 87-98. https://doi.org/10.1007/s12525-019-00377-4
IEEE. (1990). IEEE Standard Glossary of Software Engineering Terminology. IEEE Std 610.12-, Compatibility. pp.1-84, 31 Dec. 1990, https://doi.org/10.1109/IEEESTD.1990.101064
Isckia, T., De Reuver, M., & Lescop, D. (2020). Orchestrating platform ecosystems: the interplay of innovation and business development subsystems. Journal of Innovation Economics Management, 32(2), 197-223. https://doi.org/10.3917/jie.032.0197
Kapoor, K., Bigdeli, A. Z., Dwivedi, Y. K., Schroedera, A., Beltaguia, A., & Bainesa, T. (2021). A sociotechnical view of platform ecosystems: Systematic review and research agenda. Journal of Business Research, 94-108. https://doi.org/10.1016/j.jbusres.2021.01.060
Karippacheril, T. G., Nikayin, F., De Reuver, M., & Bouwman, H. (2013). Serving the poor: Multisided mobile service platforms, openness, competition, collaboration and the struggle for leadership. Telecommunications Policy, 37(1), 24-34. https://doi.org/10.1016/j.telpol.2012.06.001
Kerber, W., & Schweitzer, H. (2017). Special issue on contracts on digital goods and services. Interoperability in the digital economy. (A. Metzger, H. Schweitzer, R. Janal, & S. Golla, Eds.) International Journal of Property Information Technology and Electronic Communication, 8(1), 39-58. https://doi.org/10.2139/ssrn.2922515
Khamfroush, H., Hudson, N., Iloo, S., & Naeini, M. R. (2019). Influence spread in two-layer interdependent networks: designed single-layer or random two-layer initial spreaders? Applied Network Science, 4(40). https://doi.org/10.1007/s41109-019-0150-3
Kiesling, L. (2021). Plug-and-play, mix-and-match: a capital systems theory of digital technology platforms. The Review of Austrian Economics, 34(1), 13-32. https://doi.org/10.1007/s11138-020-00513-w
Liu, Y., Lu, Q., Zhu, C., & Yu, Q. (2021). A blockchain-based platform architecture for multimedia data management. 80(20), 30707-30723. https://doi.org/10.1007/s11042-021-10558-z
Mattila, J., & Seppälä, T. (2018). Distributed governance in multisided platforms: A conceptual framework from the case: Bitcoin. (A. Smedlund, A. Lindblom, & L. Mitronen, Eds.) Translational Systems Sciences, 11. https://doi.org/10.1007/978-981-10-8956-5_10
OECD. (2018). Digitalisation, business models and value creation. In Tax Challenges Arising from Digitalisation – Interim Report 2018: Inclusive Framework on BEPS. Paris,: OECD Publishing. https://doi.org/10.1787/9789264293083-4-en.
Oh, P., & Monge, P. (2016). Network theory and models. pp. 1-15. https://doi.org/10.1002/9781118766804.wbiect246
Panda, B., & Leepsa, N. (2017). Agency theory: Review of theory and evidence on problems and perspectives. Indian Journal of Corporate Governance, 10(1), 74-95. https://doi.org/10.1177/0974686217701467
Parker, G., Van Alstyne, M. W., & Jiang, X. (2017). Platform ecosystems: How developers invert the firm. Boston University Questrom School of Business Research Paper (2861574)., 41(1), 255-266. https://doi.org/10.25300/MISQ/2017/41.1.13
Pesce, D., Neirotti, P., & Paolucci , E. (2019). When culture meets digital platforms: value creation and stakeholders’ alignment in big data use. Current Issues in Tourism, 22(15), 1883-1903. https://doi.org/10.1080/13683500.2019.1591354
Ramaswamy, V., & Kerimcan, O. (2018). Offerings as digitalised interactive platforms: a conceptual framework and implications. Journal of Marketing 82, 4, 19–31. https://doi.org/10.1509/jm.15.0365.
Ravasi, D., & Rindova, V. (2008). Symbolic value creation. In B. Daved, & H. Hansen (Eds.), The SAGE Handbook of new approaches to organisation (pp. 270-284). Sage. https://doi.org/10.4135/9781849200394.n49
Rayna, T., & Striukova, L. (2016). Involving consumers: the role of digital technologies in promoting ‘prosumption’ and user innovation. Journal of Knowl Econ, 12, 218-237. https://doi.org/10.1007/s13132-016-0390-8
Ritzer, G., Dean, P., & Jurgenson, N. (2012). The coming of age of the prosumer. American behavioural scientist, 56 (4), 379-398. https://doi.org/10.1177/0002764211429368
Ruutu, S., Casey, T., & Kotovirta, V. (2017). Development and competition of digital service platforms: A system dynamics approach. Technological Forecasting and Social Change, 117, 119-130. https://doi.org/10.1016/j.techfore.2016.12.011.
Schreieck, M., Hein, A., Wiesche, M., & Krcmar, H. (2018). The challenge of governing digital platform ecosystems. In C. Linnhoff-Popien, R. Schneider, & M. Zaddach (Eds.), Digital Marketplaces Unleashed (pp. 527–538). Berlin, Heidelberg: Springer. https://doi.org/10.1007/978-3-662-49275-8_47
Shen, L., Qin, C., & Luo, C. (2020). A grounded theory approach to brand value networks: the prosumption logic standpoint. American Journal of Industrial and Business Management, 10(4), 841. https://doi.org/10.4236/ajibm.2020.104057
Spulber, D. (2010). Solving the Circular Conundrum: Communication and Coordination in the Internet. Northwestern University Law Review, 104(2), 537-591. Retrieved from https://wwws.law.northwestern.edu/research-faculty/clbe/workingpapers/documents/spulber_circularconundrum.pdf
Staykova, K., & Damsgaard, J. (2018). Introducing a platform interactions model for studying multisided platforms. 51st Hawaii International Conference on System Sciences. (pp. 5024- 5033). Honolulu, HI 96822: the University of Hawai’i at Manoa. https://doi.org/10.24251/HICSS.2018.627
Subramaniam, M. (2020). Digital ecosystems and their implications for competitive strategy. Journal of Organisational Design, 9(12). https://doi.org/10.1186/s41469-020-00073-0
Teece, D. J. (2018). Business models and dynamic capabilities. Long range planning, 40-49. https://doi.org/10.1016/j.lrp.2017.06.007
Tian, J., Shen, L., & Chen, Y. (2017). A study on customer prosumption concept and its impact on enterprise value co-creation. Theoretical Economics Letters, 7(7), 2040-2053. https://doi.org/10.4236/tel.2017.77138
Tiwana, A. (2014). Chapter 5 - Platform architecture. In A. Tiwana, & M. Kaufmann (Eds.), Platform ecosystems: aligning architecture, governance, and strategy (pp. 73-116). https://doi.org/10.1016/B978-0-12-408066-9.00005-9.
Veisdal, J. (2020). The dynamics of entry for digital platforms in two-sided markets: a multi-case study. Electron Markets(30), 539–556. https://doi.org/10.1007/s12525-020-00409-4
Wang, Z., & Busemeyer, J. (2015). Reintroducing the concept of complementarity into psychology. Frontiers in Psychology, 6, 1822. https://doi.org/10.3389/fpsyg.2015.01822
Yablonsky, S. (2020). A multidimensional platform ecosystem framework. Kybernetes, 49(7), 2003-2035. https://doi.org/10.1108/K-07-2019-0447
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Value creation in the 4IR: Millennials and Digital Multisided Platforms (MSPs). (2023). Digital Policy Studies, 1(2), 1-17. https://doi.org/10.36615/dps.v1i2.2274
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Value creation in the 4IR: Millennials and Digital Multisided Platforms (MSPs). (2023). Digital Policy Studies, 1(2), 1-17. https://doi.org/10.36615/dps.v1i2.2274