Transaction costs and the sharing economy

Info ◽  
2016 ◽  
Vol 18 (1) ◽  
pp. 1-15 ◽  
Author(s):  
Anders Hansen Henten ◽  
Iwona Maria Windekilde
Keyword(s):  
Transaction Costs ◽  
Business Models ◽  
Industrial Structure ◽  
Research Question ◽  
Sharing Economy ◽  
Theoretical Frameworks ◽  
Content Type ◽  
Theoretical Approaches ◽  
Analytical Perspective ◽  
Theory Framework

Purpose The paper aims to discuss the so-called sharing economy from a business modeling and industrial structure perspective. The illustrative cases examined are Airbnb and Uber. The research question raised is concerned with the extent to which transaction cost theory can be used to explain the changing industrial structures in the application areas that the Internet-based platforms are addressing and how other theoretical frameworks can be helpful in understanding these developments. Design/methodology/approach As the sharing economy topic is relatively new, the paper takes its point of departure in a brief overview of the different issues discussed in the academic literature and the press regarding this emerging phenomenon. The paper presents relevant theoretical approaches to analyzing business models of sharing platforms and industrial structure implications. It, thereafter, presents the cases of Airbnb and Uber to discuss the relevance of the theories put forward. Findings The paper concludes by proposing a theoretical framework for analyzing the structural implications of the sharing economy based on theories on multi-sided platforms, transaction costs and substitution and complementation. Research limitations/implications The research implications are to establish a comprehensive theory framework for analyzing the development of commercial sharing platforms. Originality/value The originality and value of the paper is related to the novelty of topic and the development of a theory framework for analyzing the business models of commercial sharing platforms. Only little has been written from an academic analytical perspective on the sharing economy, and there is a need for developing a coherent framework for analyzing these developments.

scholarly journals Sustainable Business Models – What Do Management Theories Say?

2016 ◽  
pp. 62-72
Author(s):  
Gyula Zilahy
Keyword(s):  
Business Models ◽  
Industrial Ecology ◽  
Explanatory Power ◽  
Sharing Economy ◽  
Sharp Reduction ◽  
Sustainable Business ◽  
Resource Based View ◽  
Theoretical Approaches ◽  
Sustainable Business Models ◽  
Theoretical Foundations

Literature describing the notion and practice of business models has grown considerably over the last few years. Innovative business models appear in every sector of the economy challenging traditional ways of creating and capturing value. However, research describing the theoretical foundations of the field is scarce and many questions still remain. This article examines business models promoting various aspects of sustainable development and tests the explanatory power of two theoretical approaches, namely the resource based view of the firm and transaction cost theory regarding their emergence and successful market performance. Through the examples of industrial ecology and the sharing economy the author shows that a sharp reduction of transaction costs (e.g. in the form of internet based systems) coupled with resources widely available but not utilised before may result in fast growing new markets. This research also provides evidence regarding the notion that these two theoretical approaches can complement each other in explaining corporate behaviour.

Legitimacy building of digital platforms in the informal economy: evidence from Indonesia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Eko Heru Prasetyo
Keyword(s):  
Informal Economy ◽  
Chief Executive Officers ◽  
Business Models ◽  
Chief Executive ◽  
Sharing Economy ◽  
Bottom Of The Pyramid ◽  
Content Type ◽  
Digital Platforms ◽  
Executive Officers ◽  
Start Ups

Purpose This study aims to investigate how digital entrepreneurs develop platforms business models under an unregulated market and what approach they take to address informal economy (IE) activities. Design/methodology/approach The author used a qualitative method by interviewing sixteen respondents, including founders, Chief Executive Officers, and managers of digital-driven start-ups in Indonesia. I then analysed the interviews into several codes and themes for further discussion. Findings This study reveals distinctive approaches performed by startups within three-level institutions, namely, users, market and regulation. Each level represents digital entrepreneurs’ unique behaviour, which the author described as collective, narrative and compliant. Research limitations/implications This paper demonstrates that digital entrepreneurs leveraging informal sectors contribute to the process of formalisation. However, the author emphasise less on how it impacts informality and who receives incentives. Practical implications This study suggests appropriate strategies for entrepreneurs who build and develop a platform beyond immature setting and unveils different directions to comprehend their legitimacy building. Social implications This study also elucidates political implications such as how the dynamics between regulators’ response and entrepreneurs’ reaction shape the new regulative environment. An idea of self-regulate – entrepreneurs as actors instead of a subject of regulation – might be suitable to reflect how they overcome the bottom of the pyramid using technology innovation. Originality/value While previous studies focused primarily on sharing economy, this study provides a different array of discussion on the digitalisation of the informal economy in emerging markets.

New digital tourism ecosystem: understanding the relationship between information sources and sharing economy platforms

2020 ◽  
Vol 6 (2) ◽  
pp. 335-345
Author(s):  
Arminda Almeida-Santana ◽  
Tatiana David-Negre ◽  
Sergio Moreno-Gil
Keyword(s):  
Business Models ◽  
Information Sources ◽  
Sharing Economy ◽  
Logit Analysis ◽  
Content Type ◽  
Travel Destination ◽  
Travel Agencies ◽  
Search For Information ◽  
The Relationship ◽  
The Way

Purpose The purpose of this study resides in a better understanding of the relationship between the use of traditional operators, online travel agencies, such as Booking.com and Expedia, comparators, tour operators and traditional travel agencies, airlines, new non-tourist companies like Google and the use of sharing economy platforms to obtain information about a travel destination. Design/methodology/approach Applying an analysis to 13,243 tourists from 19 European countries, a binomial logit analysis was carried out with the latest version of the SPSS statistical analysis program. Findings The use of Expedia and Booking.com has a positive effect on the use of sharing economy platforms to obtain information about travel destinations. However, it can also be observed how the use of Google, Facebook, tour operators and travel agencies, airlines and Twitter can have a negative effect. Practical implications The study provides interesting recommendations for destinations to be able to design better marketing strategies which focus on cognitive components of the destination image in different information sources. Originality/value Tourists search for information that helps them make better decisions when it comes to choosing a travel destination and they do so using different channels that have evolved over time. The proliferation of internet platforms has transformed the way tourists search for information and consequently the way the secondary image of destination is formed. The sharing economy plays an important role in this new tourism ecosystem. These new business models, based on platforms, coexist with other traditional information sources, tour operators and travel agencies and airlines. However, previous studies have not inquired about the relationship between them all.

The blockchain as a sustainable business model innovation

2020 ◽  
Vol 58 (8) ◽  
pp. 1621-1642 ◽  
Author(s):  
Riccardo Tiscini ◽  
Silvia Testarmata ◽  
Mirella Ciaburri ◽  
Emanuele Ferrari
Keyword(s):  
Food Industry ◽  
Business Models ◽  
Research Question ◽  
Academic Research ◽  
Structured Interview ◽  
Annual Reports ◽  
Sustainable Business ◽  
Content Type ◽  
Corporate Website ◽  
Set Up

PurposeThe purpose of this paper is to strive to close the current research gap pertaining to potential implications of the blockchain (BC) for sustainable business models (SBMs) in the agri-food industry.Design/methodology/approachTo answer the research question, the authors utilised the Value Triangle framework by Biloslavo et al. (2018) in order to explore the potential innovation of BC for SBMs in the agri-food industry. Then, the authors apply it to an in-depth exploratory case study of the Placido Volpone winery. The authors draw data from strategic plans, annual reports, corporate website and a semi-structured interview with the winery's founder.FindingsThe authors show how BC technology could be a source of SBM innovation in the agri-food industry.Research limitations/implicationsBC technology has the potential to significantly change SBMs. Given the huge set-up investments by the industry, academic research investigating potential implications and supporting companies in their application of BC is needed. This paper explores how the implications of BC as source of innovation on SBMs can be investigated.Practical implicationsThe research results of this study can be used by company leaders and managers to support the development of SBMs through the introduction of BC technology in their business activities.Originality/valueThe paper is novel because it investigates the relationship between SBM innovation and BC providing theoretical justification to SBM technological innovation in an agri-food setting. Additionally, the paper provides an empirical application of the framework by Biloslavo et al. (2018) for understanding the development of SBM through BC in the agri-food industry.

scholarly journals Factors influencing trust and behavioral intention to use Airbnb service innovation in three ASEAN countries

2020 ◽  
Vol 14 (2) ◽  
pp. 175-188
Author(s):  
Evelyn Lim Chua ◽  
Jason Lim Chiu ◽  
Candy Lim Chiu
Keyword(s):  
Social Influence ◽  
Behavioral Intention ◽  
Quantitative Methods ◽  
Business Models ◽  
Service Providers ◽  
Sharing Economy ◽  
The Philippines ◽  
Intention To Use ◽  
Content Type ◽  
Behavioral Intention To Use

Purpose The sharing economy is described as a community marketplace, particularly home sharing such as Airbnb, which is more prevalent. Airbnb changed the way renters and tourists find places to stay when they are traveling. The company introduced innovations in business models and technologies. So, Airbnb requires specific factors that will influence consumers’ trust because consumers intuitively seek out trusting factors to make judgments on innovative service providers. Thus, the purpose of this study is to understand the factors that influence travelers’ trust to use Airbnb within the three ASEAN nations. Design/methodology/approach The data were collected from both qualitative and quantitative methods. The questionnaire was the main data-gathering instrument used in this study and supplemented by informal interviews. A self-administered questionnaire was provided to 130 Airbnb users from the Philippines, Indonesia and Singapore using Hayes’ Process Macro as the statistical tool. Findings The correlation test was carried out to determine the strength and relationships among the independent, mediating and dependent variables. All independent variables are positively correlated with the mediating variable. The results reveal that ease of use, convenience, information social influence, normative social influence and security have a significant impact on trust and behavioral intention to use Airbnb. Originality/value This study contributes to the field of sharing economy, particularly home sharing, by examining different factors that influence trust and behavioral intention. This study focused on the case of Southeast Asian consumers, so this study is useful for marketing practitioners to enhance their marketing strategies in catering to this segment of the market.

Sociomaterial practices for value co-creation in the sharing economy

2020 ◽  
Vol 33 (3) ◽  
pp. 963-982 ◽  
Author(s):  
Peng Du ◽  
Hsin-Hui Chou
Keyword(s):  
Empirical Investigation ◽  
Research Question ◽  
Sharing Economy ◽  
Multiple Sources ◽  
Content Type ◽  
Theoretical Concepts ◽  
Technology Applications ◽  
Self Service ◽  
Service Ecosystem ◽  
Human Actors

PurposeThe purpose of this paper is to address the research question of how human actors and technology interact together in practices in the context of a sharing economy. The theoretical foundation of this paper is based on the existing literature about the sharing economy and studies that have been carried out examining value co-creation and sociomateriality.Design/methodology/approachThis paper adopts a qualitative case study method for the empirical investigation. Using theoretical sampling, Xbed, an internet, unmanned and self-service hotel platform based in Guangzhou, China, was chosen for the empirical investigation. The case was built on multiple sources of data, including archival materials, on-site fieldwork and in-depth interviews. Then, the case was interpreted based on a number of theoretical concepts, with a particular emphasis on the sociomaterial perspective.FindingsThis paper shows how human actors and technology interact with one another in a number of interrelated ways, which collectively result in the value co-creation necessary for creating a sharing economy. The authors have found that various forms of sociomateriality (the intersection between technology, work and organization) play a key role in co-creation and that interactions between these sociomaterial assemblages (assemblage-to-assemblage (A2A)) drive the development of a sharing economy. These sociomaterial assemblages have dynamic and evolving characteristics.Practical implicationsThe authors argue that the key to the success of a sharing economy lies in how to engage participating actors with material entities (e.g. technology applications) to form action-enabling sociomaterial assemblages, as well as in determining how these assemblages can be systematically arranged to collectively form a larger assemblage. We suggest that managers need to conceive how relations between the social and the material realms can be structured by adopting a service logic that aims to help the beneficiary function better. The authors also suggest that managers have to consider what assemblages are necessary and how they are connected, to construct a full access-based service.Originality/valueThis paper conceptualizes the sharing economy as a system of value co-creation practices and empirically examines such practices from a sociomaterial perspective. This paper adopts the concept of sociomaterial assemblages to investigate sharing practices, through which the knowledge of the role of technology in the development of a sharing economy is enhanced. This paper also expands the knowledge of service-dominant logic by using a microfoundation perspective to look at the value co-creation that emerges as a result of the interaction between sociomaterial assemblages. These assemblages also act as constitutive elements of a service ecosystem.

scholarly journals Open-source hardware as a model of technological innovation and academic entrepreneurship

2020 ◽  
Vol 17 (2) ◽  
pp. 177-195
Author(s):  
Vinícius Rosa Cota ◽  
Cleiton Lopes Aguiar ◽  
Bezamat de Souza Neto ◽  
Miguel Benegas
Keyword(s):  
Open Source ◽  
Technological Innovation ◽  
Academic Entrepreneurship ◽  
Business Models ◽  
Disruptive Innovation ◽  
Theoretical Frameworks ◽  
Content Type ◽  
Open Hardware ◽  
Whole Process ◽  
Open Source Hardware

Purpose The purpose of this paper is to argue in favor of the open hardware philosophy (open-source hardware – OSH) as a technological innovation and academic entrepreneurshipmodel in Brazil. Design/methodology/approach This argument is based on three pillars. The first one refers to a bibliographic review of theoretical frameworks related to academic entrepreneurship and technological innovation to emphasize the disruptive innovation capacity of academia. Second, a few elements related to the Brazilian political, economic and structural scenario, which entail a (more) favorable environment to technological innovation and academic entrepreneurship, is presented. Finally, concepts related to OSH and its business model are approached to demonstrate the facilitating effect toward the whole process. Findings As a result of the argument made herein, it is possible to perceive the viability of the OSH model in terms of entrepreneurship and technological innovation in the academic sphere, and to perceive its benefits before social and economic needs in areas such as health and education. Research limitations/implications There are no empirical or quantifiable data in the literature that enable comparison between OSH and traditional technological innovation models. Originality/value The considerations on the philosophical value of OSH and its business models are scarcely explored in international literature. As far as we know, relating OSH to technological innovation entrepreneurship in the academic sphere, as well as its singularities in Brazil regarding the innovation national system and social and economic demands, is a unique approach in literature.

Platform-mediated tourism micro-entrepreneurship: implications for community-based tourism in Thailand

2020 ◽  
Vol 11 (2) ◽  
pp. 223-240 ◽  
Author(s):  
Morakot Ditta-Apichai ◽  
Uraiporn Kattiyapornpong ◽  
Ulrike Gretzel
Keyword(s):  
Business Models ◽  
Local Community ◽  
Sharing Economy ◽  
Community Based ◽  
Content Type ◽  
Tour Guides ◽  
Online Platforms ◽  
Thai Government ◽  
Development Goals ◽  
Compare And Contrast

Purpose This paper aims to bridge micro-entrepreneurship, sharing economy and community-based tourism (CBT) literature by analyzing the specific ways in which technological platforms mitigate risks and create opportunities that benefit local communities. Design/methodology/approach Six online platforms (two local and four international) used by tourism micro-entrepreneurs in Thailand were systematically analyzed to compare and contrast nuances in their business models, as well as their features to highlight benefits to CBT. Thematic analysis was used in the data analysis. Findings Three different types of business models based on tourism offers, membership policy and contributions to the destination community were identified. The variety of tourism offers includes tailor-made tours and private tour guides, local food experiences, skilled workshops and other local/community-based activities. Importantly, Thai platforms work closely with the Thai Government to promote tourism micro-entrepreneurship. Originality/value This paper adds to tourism micro-entrepreneurship, sharing economy and CBT literature by dissecting the business models of online platforms and their roles as mediators of CBT, discussing the platforms’ contributions to the achievement of sustainable development goals.

Mapping the sharing economy for sustainability research

2018 ◽  
Vol 56 (3) ◽  
pp. 570-583 ◽  
Author(s):  
Frederik Plewnia ◽  
Edeltraud Guenther
Keyword(s):  
Business Models ◽  
Sharing Economy ◽  
Future Research ◽  
Service Market ◽  
Conceptual Foundation ◽  
Content Type ◽  
Professional Managers ◽  
Sustainability Research ◽  
Wide Range ◽  
New Business

Purpose In order to guide sustainability research on the sharing economy, the purpose of this paper is to develop a comprehensive framework that captures the wide range of activities and business models that are considered to be part of the sharing economy. Design/methodology/approach Based on a systematic literature review and a content analysis, existing typologies are identified and analyzed for their conceptual intersections. Finally, categorizations from 43 documents are integrated into one framework. Findings Four main dimensions are identified as being used in different contexts to characterize sharing systems and were combined to form one comprehensive typology: shared good or service, market structure, market orientation, and industry sector. Originality/value The proposed typology is able to distinguish sharing activities based on their similarities and differences. Social, economic, and communicational avenues for the term “sharing” are merged into a conceptual foundation of the sharing economy. This enables researchers, practitioners, and policy makers to position their projects in the broad field of sharing. By discussing inherent tensions with regard to sustainability of the sharing economy, the offered categorizations can help to guide future research and policy intervention. Last but not least, professional managers should find valuable ideas for new business models.

scholarly journals IMPLICATIONS OF THE COVID-19 CRISIS FOR THE SHARING ECONOMY IN TOURISM: THE CASE OF AIRBNB IN THE CZECH REPUBLIC

2020 ◽  
Vol 14 (2) ◽  
pp. 78-89
Author(s):  
Vendula Fialova ◽  
Ivanka Vasenska
Keyword(s):  
Czech Republic ◽  
Business Models ◽  
Sharing Economy ◽  
The Czech Republic ◽  
Digital Platforms ◽  
Theoretical Approaches ◽  
Real Time Measurement ◽  
Property Owners ◽  
The World ◽  
One Way Anova

The concept of the sharing economy is spreading all over the world. From car rides to home sharing to tool rentals, the sharing economy offers all this and much more. Its business models are mediated through digital platforms that allow for a more accurate real-time measurement of spare capacities and can dynamically connect these capacities to those who need them; an example of such platform is Airbnb. Currently, international tourism has been completely paralyzed, and tourists around the world have been canceling their reservations. As of mid-March 2020, this applies to all customers worldwide. Property owners thus lost their sources of income for the coming weeks and the effects have been especially harsh for landlords using the Airbnb portal. In Czech Republic, most landlords using the Airbnb platform are in Bratislava, where less than a thousand properties are on offer. In other cities, the rental offer is more restricted. This research paper examinesthe impact of Covid-19 on occupancy of vacation rentals offered via Airbnb, by comparing and analyzing the expected and actual numbers of guests. The introduction outlines the theoretical approaches to the sharing economy and the way the Airbnb platform works. In the methodology section, a one-way ANOVA is described and applied. The results are followed by comparison of expectations and reality, discussion, and conclusions.

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