Evaluating strategies to persist for digital platform firms in a post-digitalization era: an empirical evidence from Indian platform firms

Abstract

PurposeThe dynamic and evolving nature of the market calls for attention to digital platform firms' survival strategies, building agility for persistence in a continuously changing business environment. In India, the government’s adoption of the Digital Policy is one such change in the business environment for the firms that impact almost all sectors. Such policies cause a disruption wherein digital platform firms must be agile and create a strategic response that will endure any changes. The present study attempts to gain insight into the competitive strategies adopted by the digital platform firms of the consumer durables industry in India, which are implemented to facilitate their growth.Design/methodology/approachThe entire study is conducted in two phases. Phase one includes identifying strategies sampled digital platform firms adopted in response to the digitalization policy, and the second phase evaluates the significance of the adopted plans to persist.FindingsWhile clubbing the 42 strategic responses to a few aggregate dimensions, the study found four types of responses adopted by the digital platform firms in the consumer durable industry to persist in the market. Using a two-step system, the Generalized Method of Moments (GMM) approach, the study found that all four dimensions are statistically significant, positively impacting these firms' profitability.Practical implicationsThe study contributes to the knowledge base of strategic responses to persist for the incumbent platform firms in a dynamic business environment.Originality/valueThe study answers the pertinent research question of how such strategic decisions may be informed in favor of profitability.