Data access as a big competitive advantage: evidence from China's car-hailing platforms

Abstract

PurposeThe online platform is one of the essential components of the platform economy that is constructed by a large scale of the personal data resource. However, accurate empirical test of the competition structure of the data-driven online platform is still less. This research is trying to reveal market allocation structure of the personal data resource of China's car-hailing platforms competition by the empirical data analysis.Design/methodology/approachThis research is applying the social network analysis by R packages, which include k-core decomposition and multilevel community detection from the data connectedness via the decompilation and the examination of the application programming interface of terminal applications.FindingsThis research has found that the car-hailing platforms, which establish more constant personal data connectedness and connectivity with social media platforms, are taking the competitive market advantage within the sample network. Data access discrimination is a complementary method of market power in China's car-hailing industry.Research limitations/implicationsThis research offers a new perspective on the analysis of the multi-sided market from the personal data resource allocation mechanism of the car-hailing platform. However, the measurement of the data connectedness requires more empirical industry data.Practical implicationsThis research reveals the competition structure that relies on personal data resource allocation mechanism. It offers empirical evidence for governance, which is considered as the critical issue of big data research, by reviewing the nature of the data network.Social implicationsIt also reveals the data convergence process of the social system and the technological system.Originality/valueThis research offers a new research method for the real-time regulation of the car-hailing platform.