Year: 2026
Type: article
Abstract: While platforms increasingly underpin today's innovation economy, how user needs and preferences shape the benefits of platforms remains less understood. This study, through the lens of demand heterogeneity, investigates how firms in the early stage of an industry utilize platforms to facilitate technology transition. We examine both platform owners and participants— firms joining a competitor-run platform to leverage infrastructure advantages rather than to supply complementary products. By tracing the trajectories of Taiwanese electric scooter firms (2016–2024), we demonstrate that a platform is not a one-size-fits-all solution. Building a proprietary platform increases segment share in the substitutive and complementary demand segments but decreases share in the emergent segment, whose users prefer minimal change. Firms joining a competitor-run platform experience declining shares across all segments, highlighting the risks of power asymmetry between platform owners and participants. Our results demonstrate that a platform strategy that resonates with one segment may fail with another. These findings advance the platform literature by clarifying the conditions under which platform ownership, participation, or avoidance yields competitive advantage in nascent industries. The study offers actionable insights for managers and policymakers, emphasizing the need to align strategies with demand heterogeneity to foster technology transitions.
Author: I. Kim Wang
Institution: Suffolk University
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: hybrid
Estimated APC paid: $3,490
OpenAlex ID: W7140307756