University of Twente Student Theses
A hybrid business model solution : multi-sided business platforms as drivers of change
Bayram, D. (2021) A hybrid business model solution : multi-sided business platforms as drivers of change.
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| Abstract: | Multi-sided business platforms are increasing in popularity. One the one hand, it creates a threat for incumbent firms, because platforms are progressively entering industries dominated by pipeline businesses. On the other hand, it unlocks an opportunity for incumbent firms since the adoption of platform practices can facilitate the competitive position within the market. This would transform incumbents into a hybrid business which is defined as a business engaging in pipeline and platform activities simultaneously. In extant literature only little is known about the hybrid business model transformation, hence, this research aims to create insights into how incumbent firms can leverage the power of platform business models in order to become a hybrid business. One qualitative, in-depth case study has been conducted to test and evaluate two theoretical frameworks on hybrid business model transformation. This has revealed several benefits and challenges based on which a total of nine recommended practices for hybrid business model transformation have been formulated. The results indicate that pipeline businesses should build the platform around their core business activity. Thereby, they can utilize existing advantages like the existing brand equity, scalability of the brand portfolio and prior product and market knowledge. The exploitation of these advantages can help to overcome the challenges of building a platform. These include organizational restructuring, software and hardware architecture, ecosystem expansion, network effects, pricing strategy and market competition. The nine recommended practices serve as a guideline for incumbents to transform gradually into a hybrid by establishing a platform and maintaining pipeline operations. This research paper enriches literature by testing and evaluating existing theoretical frameworks and offering deeper insights into the hybrid business model transformation. The practical contribution is related to the definition of recommended practices which can be used to guide incumbents willing to transform into hybrid businesses through the business model transformation. |
| Item Type: | Essay (Master) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Subject: | 85 business administration, organizational science |
| Programme: | Business Administration MSc (60644) |
| Link to this item: | https://purl.utwente.nl/essays/85521 |
| Export this item as: | BibTeX EndNote HTML Citation Reference Manager |
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