Multi-sided platform strategies for organizations : transforming the business model

Purpose: The purpose of this study is to explore and summarize the strategies organizations can follow when adopting a multi-sided platform (MSP) business model. MSPs benefit from direct and indirect network effects, quick scaling, fast innovation and new revenue streams. Design/methodology/approach: This study draws from the literature on business model innovation to identify five strategies in which organizations can transform by creating or acquiring an MSP. This taxonomy is confirmed with a classification of 20 MSPs adopted by 18 organizations, 5 short case studies and an interview with an executive involved in the launch of an organization’s MSP. Findings: To implement an MSP, companies can expand their offerings, intermediate their industry with a marketplace, expand to new geographies or market segment, co-innovate their core product or service and co-innovate complementary offerings. Practical implications: Organizations are presented with five distinct approaches to transform their business model and benefit from MSP interactions. The cases, quotes from executives and analyzes will serve organizations in designing a platform strategy. Originality/value: This study provides executives and researchers with insights about how organizations can transform their business models with MSPs.