Digital platforms in Russia: competition between national and foreign multi-sided platforms stimulates growth and innovation

Author:

Eferin Yaroslav,Hohlov Yuri,Rossotto Carlo

Abstract

Purpose This paper aims to test the “winner-takes-all” vs the “winner-takes-some” scenarios in digital platform competition dynamics in emerging markets. Design/methodology/approach This paper uses an analytical reference framework to assess the emergence of digital platforms in Russia, including four elements: definition of multi-sided platforms (MSPs), platform enablers, business models and competitive dynamics. Findings This paper concludes that Russia shows that a healthy competition between national and foreign MSPs led to the emergence of a shared equilibrium, where local platforms were able to retain a significant, often majority, share vis-à-vis foreign and global platforms. Research limitations/implications This paper stands as a counterpoint to the widespread conviction that digital platform dynamics will result into a “winner-takes-all” scenario and dominance of global platforms. Practical implications This case study offers practical data and analysis that can be used to create a baseline and evaluate the dynamics of digital platforms in emerging markets. It offers data, trends and evidence on Russia’s digital economy. Social implications This research provides a logical framework to help policymakers take decisions on a policy framework to regulate platforms in emerging markets. The good outcome of competition between local and foreign platforms should emerge as a policy objective to achieve in most emerging markets. Originality/value This case study is the first baseline to assess the dynamics of competition between national and foreign digital platforms in the Russian market. It is one of the first papers to tackle the market of digital platforms in an emerging and developing economy. It tries to address the debate between “winner-takes-all” and “winner-takes some” competition equilibrium through a concrete case study in an important G20 emerging market economy.

Publisher

Emerald

Subject

Management of Technology and Innovation,Information Systems and Management,Computer Networks and Communications,Information Systems,Management Information Systems

Reference28 articles.

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2. Constantiou, I., Marton, A. and Tuunainen, V.K. (2017), “Four models of sharing economy platforms”, MIS Quarterly Executive, available at: http://misqe.org/ojs2/index.php/misqe/article/viewFile/798/474

3. Evans, P.C. and Gawer, A. (2016), “The rise of the platform enterprise: a global survey”, The Center for Global Enterprise, available at: www.thecge.net/archived-papers/the-rise-of-the-platform-enterprise-a-global-survey/

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