Antecedents to Digital Platform Usage in Industry 4.0 by Established Manufacturers

Abstract

Digital platforms are expected to have the potential for a multitude of purposes forindustrial enterprises, for instance when integrated within the concept of Industry 4.0. Despite itsrelevance for industrial value creation, little research on platforms in the industrial context hasbeen undertaken so far. Owing to the lack of research in this field, the paper aims to investigate thepotentials and challenges of digital platforms in order to generate an understanding of theantecedents to the use of digital platforms by established manufacturers. In thequalitative-exploratory study, the paper uses a qualitative empirical research approach, relying onin-depth expert interviews. The sample comprises interviews with managers of 102 German andAustrian industrial enterprises from several industrial sectors. All of the enterprises regarded havepractical experiences with digital platforms. The results show that the main potentials of digitalplatforms are reducing transaction costs, combining strengths of enterprises, and realizingeconomies of scale as well as economies of scope. Yet, digital platforms bring challenges, such as alack of trust, competitive thinking, high coordination efforts, and loss of confidential information.The paper further distinguishes between various industry sectors revealing interesting differences.Based on the results, the paper indicates possibilities for future research and provides corporatepractice with implications.