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Collaborative Value Co-creation in the Platform Economy pp 1–27Cite as

Service in the Platform Context: A Review of the State of the Art and Future Research

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Part of the book series: Translational Systems Sciences ((TSS,volume 11))

Abstract

Traditional ways of doing business have been turned upside down by a group of new companies. Uber is “the world’s largest taxi-company owns no vehicles”. Facebook is “the world’s most popular media owner creates no content”, and Airbnb is “the world’s largest accommodation provider owns no real estate”. This relatively new research phenomenon requires a comprehensive understanding. This systematic literature review explores and questions “platform” research in the context of services.

This article studies 133 articles between 2002 and 2016. The findings suggest that the service platform is an increasingly popular field of research with a wide spectrum of disciplines across 74 journals. It is gaining momentum moving from theoretical to an empirical research area. Ninety-one articles included empirical data.

The definition of a service platform has been categorized in three major groups. They are the architectural researches (n = 37), the economic group (n = 21), a comprehensive definition (n = 48) and generic (n = 27), which is a group of papers that did not explicitly discuss the core features of platforms. This literature review develops a taxonomy of research topics based on their research focus: (1) service architecture, (2) platform’s impact on services and (3) service platform strategy. Finally, three key challenges are identified, which also serve as opportunities for future research.

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Authors and Affiliations

  1. Cambridge Service Alliance, Institute for Manufacturing, University of Cambridge, Cambridge, UK

    Xia Han, Veronica Martinez & Andy Neely

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  1. Xia Han
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Editors and Affiliations

  1. School of Business, Aalto University, Helsinki, Finland

    Anssi Smedlund

  2. School of Business, Aalto University, Helsinki, Finland

    Arto Lindblom

  3. School of Business, Aalto University, Helsinki, Finland

    Lasse Mitronen

Appendix I: Snippets of Publications

Appendix I: Snippets of Publications

Authors

Year

Summary

Barrett, Michael; Oborn, Eivor; Orlikowski, Wanda

2016

The authors conducted a longitudinal field study of a health-care social platform. They identified a complex network in which the online community value is orchestrated

Tay, Choon Khai; Chen, Song Lin

2016

This paper presents a cost estimation model for the service family based on modularity

Lusch, Robert F.; Nambisan, Satish

2015

Service platforms, which enhance the efficiency and effectiveness of the service exchange by liquefying resources and increasing resource density

Hofman, Erwin; Meijerink, Jeroen

2015

This study finds that the service value is highest when the service provision is matched with the commonality potential of the services. The results indicate that using the wrong delivery channel decreases the service value, which could eventually decrease the service value for an organization’s external customers

Eaton, Ben; Elaluf-Calderwood, Silvia; Sorensen, Carsten

2015

The tuning of 30 boundary resources can influence the innovation dynamics of the iOS platform

Seamans, Robert; Zhu, Feng

2014

Relative to newspapers without classified ad managers, the effect of Craigslist’s entry on newspapers with classified ad managers has led to a decrease of 20.7% in classified ad rates, an increase of 3.3% in subscription prices, a decrease of 4.4% in circulation, an increase of 16.5% in differentiation and a decrease of 3.1% in display ad rates. Craigslist’s entry has decreased the attractiveness of the newspaper to classified advertisers, which now have an alternative channel to reach newspaper subscribers. As a result, the affected newspaper decreases the classified ad rate. The newspaper now has a lower incentive to subsidize the subscriber side because each eyeball no longer generates the same amount of ad revenue as before, a finding that is consistent with the existing theory (e.g. Godes et al. 2009; Hagiu 2009)

Gawer, Annabelle; Cusumano, Michael A.

2014

This paper defines the distinction between internal and external platforms and emphasizes the importance of network externalities in these platforms. The Intel case is used to illustrate an ecosystem platform leader. A comparative study among IBM, Intel and Microsoft discusses their evolution towards platform leaders. A study centring on Google and Nokia in the mobile phone industry and a comparison between Microsoft and Apple in the software industry were used to further strengthen the evolution trajectories of the platform leaders and losers

Pon, Bryan; Seppala, Timo; Kenney, Martin

2014

This paper describes the transition in the mobile industry, where the device as a key asset to ensure a healthy ecosystem is no longer valid, and companies such as Google, with its Android platform, are proposing a new paradigm. Previous strategies to compete with operation systems are no longer relevant. This paper also analyses the gatekeeper roles of three such ecosystems in terms of the service-creation environment, identity management, service provisions and billing

Chen, Dongyu; Lai, Fujun; Lin, Zhangxi

2014

This paper examines lender’s behaviours in p2p lending platforms. The authors proposed a model that user’s trust in intermediary and trust in borrower would determine a platform user likelihood of lending. These two types of trust are based on 5 specific factors, which are familiarity of the platform, service quality, security protection, social capital and information quality.

Battistella, Cinzia; Nonino, Fabio

2013

This research establishes the relationships among the intrinsic/extrinsic motivations and the likelihood of using open innovation Web-based platforms

Hagiu, Andrei; Wright, Julian

2013

This paper identifies challenges for platform wannabes, such as sales efficiency, network size and competition

Bhargava, Hemant K.; Kim, Byung Cho; Sun, Daewon

2013

The authors propose a model to predict the optimal expansion strategies for start-ups and established firms to benefit from network externalities

Suarez, Fernando F.; Kirtley, Jacqueline

2012

Executive summary of four strategies: (1) Target an under-served segment of the overall customer base. (2) Leverage adjacent platforms to boost demand. (3) Differentiate their product to meet emerging needs. (4) Expand the universe of potential partners by simplifying the business model for partners

Madni, Azad M.

2012

Identifies trends of platform-based engineering, suggesting a more resilient and flexible adaptable PBE framework to avoid platform “lock-in”, especially in the engineering aspect in the long term

Lu, June; Wang, Luzhuang; Hayes, Linda A.

2012

Optimism and insecurity influence the C2C platform’s trust and functionality, which ultimately influence C2C satisfaction

Casey, Thomas R.; Toyli, Juuso

2012

The authors introduce a system-dynamics-based theoretical model to simulate the adoption of public and local wireless platforms. This paper highlights the importance of understanding complex feedback loops of the value network

Beltran, Fernando

2012

The authors use a two-sided platform concept to analyse the UFB market in New Zealand. The results show that a multi-sided market approach is beneficial to end customers, and network neutrality can be a catalyst for the deployment of broadband by combining access market and content market

Kim, Jieun; Lee, Sungjoo; Geum, Youngjung; Park, Yongtae

2012

The structure of digital content services using three building blocks: product, process and platform. Basically, two types of innovation pattern are established as divergence and convergence

Yoo, Youngjin; Boland, Richard J., Jr.; Lyytinen, Kalle; Majchrzak, Ann

2012

This paper summarizes (1) the importance of digital technology platforms, (2) the emergence of distributed innovations and (3) the prevalence of combinatorial innovation. Digital platforms are a means to promote distributed recombination innovations

Tuunanen, Tuure; Cassab, Harold

2011

Contingent to task complexity, modularized services positively influence customers’ perceived value of services and their likelihood to engage in trials of service extensions

Kaplan, Andreas M.; Haenlein, Michael

2011

Identifies three justifications for micro-blogging to exist: virtual exhibitionism and voyeurism, pre-purchase marketing research and post-purchase customer relationship management

Luis Osorio, A.; Afsarmanesh, Hamideh; Camarinha-Matos, Luis M.

2011

Proposes a framework for integrating services

Jung, Jason J.

2011

Proposes a possible service-oriented architecture-enabled SC structure

Liang, Ting-Peng; Ho, Yi-Ting; Li, Yu-Wen; Turban, Efraim

2011

Service quality, relationship quality and website quality influence social commerce decisions

Shang, Shari S. C.; Li, Eldon Y.; Wu, Ya-Ling; Hou, Oliver C. L.

2011

Taxonomy of Web 2.0 service models introduced based on the knowledge-creation perspective

Zoric, Josip

2011

This paper introduces a techno-business modelling approach concerning the business model in a service platform design scenario. Using models from his work of 2010, he proposes scenario planning by mapping the services, service enablers, capabilities and resources to address the appropriate service platform design that is fit for purpose

Moon, Seung Ki; Shu, Jun; Simpson, Timothy W.; Kumara, Soundar R. T.

2011

This paper presents a module-based service model for mass customization. The model has a three-phase design: (1) service process identification, (2) service platform design and (3) platform strategy determination

Weiss, Michael; Gangadharan, G. R.

2010

(1) A small number of APIs provide the basis for the majority of mashups. (2) Mashup platforms were introduced in response to the increasing complexity of mashups, as mashups evolved from one-feature mashups (widgets). (3) The growth of the mashup ecosystem follows a pattern where keystone data providers or “powerful hubs” attract niche data providers as complementors, and the positions of keystones in the ecosystem are mutually reinforcing

Evans, David S.; Schmalensee, Richard

2010

(1) Platform businesses typically need to attain critical mass when they are launched in order just to survive. (2) With direct network effects, the basic problem is that the level of participation inthe platform affects the quality of the product it offers to participants; if the quality is too low, participation falls, which reduces the quality further, with participation declining towards zero

Luo, Xin; Li, Han; Zhang, Jie; Shim, J. P.

2010

Risk perception influences the adoption of Internet banking services

Beeflamme, Paul; Peitz, Martin

2010

This paper proposes a model that predicts the incentives for open platform sellers. For instance, in the two-sided single-homing environment, sellers would have more incentives to invest, whereas if the buyers were multi-homing, sellers would be less likely to invest

Lehdonvirta, Vili

2009

Hedonic and social attributes act as purchase drivers

Reisinger, Markus; Ressner, Ludwig; Schmidtke, Richard

2009

In addition to considering participation externality, pecuniary externality, such as the revenue stream, can also have an influence on the dynamics of a two-sided platform. The research takes radio stations as a two-sided platform and analyses the relationship between advertisers and radio service consumers

Tee, Richard; Gawer, Annabelle

2009

Industry structure can be a determining factor for the success or failure of mobile Internet services

Hagiu, Andrei; Yoffie, David B.

2009

MSP does not guarantee a participant’s success; a company should align its product and service offerings with the type of platform activities in which it should engage

Reinartz, Werner; Ulaga, Wolfgang

2008

A flexible service platform can help companies to sell services more profitably and potentially achieve higher customer satisfaction

Lai, Linda S. L.; Turban, Efraim

2008

There is a positive correlation between network value and user content. Services are defined in general terms, such as self-serving services and collaboration services (Google talk)

Pekkarinen, Saara; Ulkuniemi, Pauliina

2008

Service modularity’s success depends on the manager’s knowledge in terms of choosing the correct processes and coordinating such modules to the organizations

Bolt, Wilko; Tieman, Alexander F.

2008

The most elastic side of the market is used to generate maximum demand by providing it with platform services at the lowest possible price. Full participation of the high-elasticity, low-price side of the market attracts the other side. As this side is less price-elastic, the platform is able to extract high prices

Gawer, Annabelle; Cusumano, Michael A.

2008

Through a series of cases from several industries, the authors offer strategic guidance for companies to achieve platform leadership

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Han, X., Martinez, V., Neely, A. (2018). Service in the Platform Context: A Review of the State of the Art and Future Research. In: Smedlund, A., Lindblom, A., Mitronen, L. (eds) Collaborative Value Co-creation in the Platform Economy. Translational Systems Sciences, vol 11. Springer, Singapore. https://doi.org/10.1007/978-981-10-8956-5_1

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