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A Double Case Study on the Influencing Factors of Enterprise Platformalization Transformation and Innovation |
Lian Yuanqiang,Song Mingyue |
(School of Business,Yangzhou University,Yangzhou225009, China) |
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Abstract With the combination of digital network technology and related industry, the platform leads the development trend of new economy with innovative thinking. Platformalization transformation and innovation is an important strategic choice for enterprise transformation and upgradation. No matter if it is the continuous innovation of Internet enterprises or the breakthrough innovation of traditional manufacturing industry, the implementation of the platformalization strategy needs to be constructed and implemented according to the relevant influencing factors, so as to break through the obstacles of the transformation and development of enterprises and achieve sustainable development. Can platformalization transformation and innovation benefit all enterprises? Which factors indeed drive the process? Which specific strategy should be the optimal choice? These core questions have aroused a heated discussion among scholars. It is necessary to carry out a comprehensive analysis of the factors influencing the implementation of the platform strategy so that the platform strategy can empower enterprises to integrate and utilize resources in a wider scope and reshape the logic and internal mechanism of value creation. There have been studies on the necessity of platform transformation and platform strategy, and most of them focus on technology. However, little attention is paid to questions on the dimensions from which the transformation and innovation strategies should be evaluated. Therefore,on the basis ofthe literature related to platform theory, this paper explores the factors influencing enterprise platformalization transformation and innovation through a double case study and analyze the intrinsic mechanism in order to enrich the theory of platformalization innovation.#br#In order to ensure the effectiveness of the double case analysis, the paper uses the case study method by selecting the typical enterprises which implement the platform strategy.According to the case selection criteria, two leading platform enterprises of different scales and environment which have already carried out platformalization transformation and innovation are finally selected as targeted cases: Haier Group, a platform enterprise implementing transformation and upgrading of traditional manufacturing, and DiDi, a mobile travel service platform rising in the Internet era.This paper puts forward four factors which affect the platformalization transformation and innovation according to enterprise practice, then demonstrates them with two different types of enterprise examples. The four factors are user participation, product service, resource scale and toughness growth cycle. #br#The research reveals that both manufacturing industries and service enterprises are influenced by four factors in theplatformalization transformation and innovation. User engagement is the key to stimulate the network effect, product service exerts an influence upon enterprises' choice of platform strategy, resource volume determines the platform model, and capacity of overcoming difficulties and growth cycle are important contingency factors. Enterprises should work out scientific blueprint, strategy selection and organization models according to the four influence dimensions. This paper provides a theoretical framework of the influence factors of enterprise platformalization transformation and innovation and verifies the four dimensions through the double case study of Haier and DiDi. The double case study derives the specific performance content and mechanisms of these two enterprises. As a result, the study proposes that to implement platform strategy means that with the multi-subject synergy of platform connection, enterprises should create value in the network rather than in the traditional chain. As a new concept, platformalization transformation and innovation, to some degrees, can complement the research on enterprise platform strategy, and provide conceptual variables and theoretical basis for related research. Therefore, the platform strategy should be made according to the actual situation of the enterprise, and become the driving force of enterprise transformation and upgrading.#br#The paper also provides three suggestions for enterprises in platform construction. Firstly, enterprises should reshape their management mindset. It is necessary to transform from traditional manufacturers or producers to resource connectors and integrators. Second, they need to reform their organizations. According to specific strategic targets, organizational structure facilitating resource sharing should be formed in a targeted manner. Enterprises should integrate global innovation elements to empower internal and external subjects to support the implementation of platform strategies. Third, it is beneficial to roll out an innovative mechanism of platform organization and to provide more resources to attract multiple subjects and continuously incubate new business.#br#
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Received: 12 September 2021
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