Governing collaborative interactions - a multiple-case study on the platform governance of peer-to-peer marketplaces

Abstract

Globally successful peer-to-peer services have inspired rapidly growing interest in platforms. Besides having become an established part of recent economics research, both collaborative consumption and platforms have found their way into our everyday lives through smart phones and news headlines, embodying the changes and opportunities brought about by digitalization. This study contributes to the ongoing discussion from an entrepreneurial viewpoint by aiming to answer the research question: how do platform entrepreneurs govern peer-to-peer marketplaces?

The question is answered through three overlapping phases of research. First, previous and recent literature is reviewed and critically examined to map different definitions, theories and approaches. Second, an entrepreneurial lens is applied by focusing on the more concrete level of decisions and actions done on platforms. A contextual framework for studying platform governance, i.e. the means and mechanisms of steering, controlling, and managing them, is identified by evaluating and comparing relevant theories found among the literature streams. Third, the governance mechanisms are explored in real life situations among six peer-to-peer platforms.

The empirical part of the research is conducted by utilizing the contextual framework in a comparative multiple-case study on six peer-to-peer platforms, which represent three different types of marketplaces. While a subjectivist view of multiple individual realities and subjective meanings is followed, methodologically the study represents interpretive qualitative research, where the focus is on understanding meaning in context. Primary data have been collected through one-on-one case interviews with platform entrepreneurs, and secondary data through a quantitative data set received from the marketplace platform provider Sharetribe.

The results of the study depict the current field of peer-to-peer online marketplaces as well as the topics and issues confronted by entrepreneurs. The theoretical framework identified in the literature review is utilized in within- and cross-case analysis between the six platforms as well as the three marketplace types. No significant differences or similarities either within or across the different types are identified – however, the results indicate specific areas of interest for further research. The empirical findings are used to develop the governance mechanism framework further in the context of collaborative consumption. The analysis reveals that all the marketplaces represent either reactive or proactive approach for platform development, and suggests this as a noteworthy starting point for following research. Even though a case study is not one to be used for making broad statistical generalizations, by combining theoretical views and an empirically developed framework this study is of value to anyone involved or interested in managing platform business.