Asia pacific journal of information systems

The Korea Society of Management Information Systems (한국경영정보학회)
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Multi-Sided Networks of Digital Platform Ecosystem: The Case of Ride-Hailing in Indonesia

  • Received : 2020.07.16
  • Accepted : 2020.10.27
  • Published : 2020.12.31
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Abstract

The business world has been undergoing a digital transformation. The adoption of multi-sided digital platform across the world has sped up this transformation. Multi-sided digital platforms create value by mediating interactions and transactions of distinct groups of users. A platform and its stakeholders need to be considered as a business ecosystem. Elements or components in the ecosystem exchange values and together form a network of exchange values. The objective of this paper is to construct a framework for crafting and observing digital business ecosystems. The foundation theories used to construct the framework are transaction cost economy (TCE), multi-sided markets, and value network. This paper uses Go-Jek, a growing ride-hailing platform from Indonesia, as a case to discuss how the framework works in mapping Go-Jek's digital business ecosystem, and then explain its expansion strategy. This paper has both theoretical and managerial contributions. It provides a formal definition of digital business ecosystems as a network of exchange values. The framework does not only help studies the existing business ecosystems but also can be used to craft a new business ecosystem. It can also be used to study value exchanges within the ecosystem, assessing or crafting ecosystem expansion strategies.

Keywords

Acknowledgement

This work was supported by Universiti Brunei Darussalam, through FIC Research Grant No UBD/RSCH/1.8/FICBE(b)/2018/003.

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