Measuring platform return on participation
While industry platforms can transform industries and drive the digital economy, there is little guidance for managers to help them decide which industry platform to join. Derived from industry research, we propose a six-step Return on Participation (ROP) method that enables managers to clearly and logically review how their firms are impacted by a platform, what the benefits are, how current and future variable and fixed costs vary, as well as the often-hidden joining costs. We suggest this technique could be also used by managers to compare competing platforms and by platform owners to evaluate the attractiveness of their offerings.
Publisher URL: https://www.sciencedirect.com/science/article/pii/S0007681321000380
DOI: 10.1016/j.bushor.2021.02.036
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