Exploring the Role of Multi-Sided Platforms in Supply Chain Management
Insights from the Latest IMM Special Issue
In recent years, Multi-Sided Platforms (MSPs) have emerged as transformative tools across various industries, enabling new business models and reshaping economic activities. MSPs, which facilitate direct interactions between multiple user groups, create value by generating cross-side network effects. This model has been widely recognized in consumer-focused platforms like Uber and Airbnb, but its potential in Business-to-Business (B2B) contexts—especially within supply chains—remains underexplored. Our recent special issue in Industrial Marketing Management seeks to fill this gap, providing new insights into the roles and strategic applications of MSPs in supply chain ecosystems.
Understanding Multi-Sided Platforms (MSPs)
MSPs connect interdependent user groups, creating network effects that increase a platform's value as participation grows. In the B2B landscape, MSPs facilitate interactions between businesses, with applications that extend beyond traditional transactions. The editorial accompanying this special issue, "Technology-enabled multi-sided platforms in B2B settings: challenges and opportunities for supply chain ecosystems," lays the groundwork for understanding MSPs through three primary categories:
- Innovation Platforms: These platforms serve as technology foundations, enabling external developers to build complementary products. An example would be Cisco’s platform, which fosters innovation within its ecosystem.
- Transactional Platforms: Best exemplified by credit card systems and marketplaces like SAP Ariba, these platforms enable direct transactions between two or more groups. The critical challenge they face is the "chicken-and-egg" problem, which requires attracting users on both sides to generate value.
- Orthogonal Platforms: Often associated with advertising models, these platforms provide a service or content for free and monetize through selling access to the user base, such as LinkedIn’s advertising side.
Platforms in Supply Chains: A New Frontier
Digital platforms have revolutionized consumer markets, but B2B supply chain applications are still evolving. Unlike B2C platforms, B2B platforms involve complex interactions, longer sales cycles, and higher-stakes transactions, as highlighted in the editorial. Supply chains stand to benefit significantly from B2B platforms, which can optimize operations, improve transparency, reduce transaction costs, and enhance agility. For example, platforms that enable real-time data sharing through blockchain and the Internet of Things (IoT) enhance supply chain visibility and coordination among stakeholders.
However, implementing digital platforms in industrial and supply chain contexts comes with unique challenges. B2B platforms must navigate operational complexity, varying technological capabilities, and regulatory constraints, all of which hinder adoption. Despite these hurdles, successful implementations—though rare—demonstrate the transformative potential of MSPs in supply chains.
Key Insights from the Special Issue
The eight papers featured in this special issue provide a diverse range of perspectives on MSPs in B2B settings, addressing critical themes such as sustainability, governance, and technological integration. Here are some of the key takeaways:
- Transactional Platforms and Resource Optimization: Several studies focus on the role of transactional platforms in improving resource allocation and transparency. For instance, Marzi et al. (2023) explore how MSPs help small and medium-sized enterprises (SMEs) and large firms alike optimize resources and improve supply chain efficiency.
- Sustainability through Platforms: Sustainability is a recurring theme. Ma et al. (2023) demonstrate how MSPs can enhance Environmental, Social, and Governance (ESG) performance by fostering digital operations and sustainable business practices.
- Innovation and Transformation: Innovation platforms are also gaining attention in B2B contexts. Budde et al. (2024) examine how traditional firms are transitioning into MSPs, leveraging platforms for strategic transformations and value creation.
Future Directions for MSP Research in Supply Chains
While MSPs have clear potential in transforming B2B supply chains, the field is still in its early stages. The editorial outlines three critical propositions for future research:
- Clarifying MSP Definitions in B2B Contexts: Many studies lump all platforms into the "digital platforms" category without clearly distinguishing MSPs. Future research should focus on refining these definitions to enhance platform implementation in supply chains.
- Exploring Non-Transactional Platforms: Beyond their role as marketplaces, MSPs can support innovation and data-driven decision-making. Innovation platforms, for instance, can enable firms to co-develop products and services that foster technological advancement.
- Leveraging Platform Thinking for Sustainable Transformation: By reimagining existing assets, MSPs can drive sustainable transformations within supply chains, promoting resilience, adaptability, and environmental sustainability.
Conclusion
As the digital economy continues to evolve, MSPs will play an increasingly critical role in shaping B2B relationships, particularly in supply chain ecosystems.
Platform thinking and diverse applications of MSPs can help supply chains to achieve greater efficiency, innovation, and sustainability in the years to come, and our special issue highlights both the opportunities and challenges that MSPs present, offering valuable insights for academics and practitioners alike.
Platform thinking and diverse applications of MSPs can help supply chains to achieve greater efficiency, innovation, and sustainability in the years to come, and our special issue highlights both the opportunities and challenges that MSPs present, offering valuable insights for academics and practitioners alike.
If you want to read the full issue, use the link below!