Structure-conduct-performance (SCP) paradigm in digital platform competition: a conceptual framework

Abstract

PurposeThe study aims to analyze factors impacting firms’ success and persistence in a digital platform competition using the structure-conduct-performance (SCP) framework. The study also includes real-life cases that are beneficial to academicians and practitioners to understand and develop strategies for success and persistence during uncertainty.Design/methodology/approachA literature review to identify the factors that impact success and persistence in a digital platform competition was conducted following Webster and Watson (2002). Findings were integrated into a SCP framework to examine and understand the identified factors’ relational impact.FindingsWhile analyzing factors under the SCP framework, all factors were divided into three categories: those impacting positively, those impacting negatively and those with ambiguous impact on the success and persistence in digital platform competition. Digital platform firms can exploit the positively impacting factors to increase market share by being distinctive from other digital platform firms and becoming dominant by withstanding competition. On the other hand, negatively impacting factors increase barriers to entry, intensify competition and reduce the distinctiveness of digital platform firms. Lastly, a few factors may have either a positive or a negative impact depending upon the particular characteristics of the firm/industry.Research limitations/implicationsThe study opens the scope for future research on empirically testing the developed conceptual framework and relationships by developing propositions to posit the possible impact of these factors on digital platforms’ success and persistence.Originality/valueThe study contributed to the existing literature by using SCP framework to analyze the factors affecting firm’s success and persistence in a digital platform competition. Also, the study has discussed the relational impact of factors rather than their impact in isolation.