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Digital Platforms: A Review and Future Directions
Posted: Apr 25, 2020
Digital technologies present opportunities for enterprise leaders to rethink their business to create better experiences for customers, employees, and ecosystem partners, and to lower costs. When companies act to take advantage of these opportunities through digital transformation, they undertake two primary activities: building a digital platform and building a new operating model.
Both these activities must happen concurrently, and that presents a pitfall: A company is limited in how far it can go in changing its operating model unless the digital platform succeeds. Approaching this pitfall incorrectly causes many digital transformation initiatives to fail
Digital Platforms: A Review and Future Directions:- Abstract
The increasing adoption of digital platforms as a new mode of organizing economic and
social activities has led to a growing interest in research on this topic amongst IS scholars.
As a result, the digital platforms literature has grown significantly over the last decade. Yet,
scholars call for more research on the topic as platforms evolve and many questions remain
unanswered. There is therefore a need to take stock of the existing literature in order to gain
better visibility of what has been achieved and what directions future research can take. We
conducted a systematic review of the literature on digital platforms including 96 articles,
covering IS and management journals. Key findings of this study show an ambiguity in the
current conceptualization of digital platforms. They also highlight the multi-dimensional
nature of digital platforms which reflects the heterogeneity of their manifestations in
practice.
Keywords: Literature review, Digital platforms, Platform design and deployment, Platform adoption
and outcomes, Definitions of digital platform, Future directions
Introduction
Digital platforms have become a major mode for organizing a wide range of human activities,
including economic, social, and political interactions (e.g., Tan et al. 2015; Kane et al. 2014). In
particular, the rise of digital platforms has transformed the landscape of multiple industries such as
transportation (e.g., Uber, Grab), hospitality (e.g., Airbnb, CouchSurfing), and software development
(e.g., Apple iOS, Google android). Enterprises that have leveraged the affordances of digital platforms
have achieved significant growth in size and scale. For instance, digital platform providers in the areas
of e-commerce and software development have attained more than $700 billion in market value
(Evans and Gawer 2016). As a result, digital platforms have become an attractive business model and
strategy, and a promising engine of economic growth for a number of sectors.
The prominence of this phenomenon and its dependence on IT capabilities have led to increasing
interest in researching digital platforms amongst Information Systems (IS) scholars (e.g., Tiwana
2015; Kwark et al. 2017; Markus and Loebbecke 2013; Parker et al. 2017). Prior empirical and
conceptual studies have examined platforms from different angles, such as the growth of platform-
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