Leveraging Social Network Utilization to Attain Competitive Advantage in Digital Multi-Sided Platforms

With the rapid growth of information technology, various business models that harness it for value creation and value capture have emerged. Unlike traditional software businesses that focus solely on selling software or its usage, these business models also involve the digitalization of conventional business processes. Firms adopting the digital multi-sided platform business model often serve as intermediaries, disrupting established businesses in the process (Kazan et al., 2014). They leverage their network resources as suppliers and connect them with customers (Hagiu & Wright, 2015). Ultimately, economic value for these firms is generated through transactions between suppliers and customers. They benefit as traffic providers, creating value for both suppliers and customers.