The Legitimacy of a Sharing Economy-Enabled Digital Platform for Socioeconomic Development

Abstract

A sharing economy based on improved ICT is an emerging economic−technological concept. Sharing economy-enabled digital platforms in China have changed patterns of consumption, exploited under-utilized resources, and increased employment. Previous studies on sharing economy-enabled digital platforms mainly focused on the positive and negative effects, users’ perception and behavioral intention, and the business model, but few studies have addressed these platforms for socioeconomic development from the perspective of legitimacy. This study applied legitimacy to analyze a typical sharing economy-enabled digital platform in China for socioeconomic development via a longitudinal interpretive case study. A process model of variation and evolution of an online car-hailing platform for socioeconomic development was inductively derived, allowing elucidation of the complexities and interplay of regulative challenges, normative challenges, and cognitive challenges in each developmental phase, resulting in improving and enriching the way people go out, optimizing resource allocation, increasing employment, and undertaking social responsibility. The findings of this case study provide a comprehensive and supported framework and demonstrate a successful model for managers and other peer organizations for future business efforts in the sharing economy.