The rise of the platform economy marks the latest phase in the ongoing digital revolution. Indeed, the platform is to this digital era what the factory was to the industrial era, both a symbol and an organizing mechanism. Gernot Grabher and Jonas König (2020) used Karl Polanyi’s analysis of what he termed the “great transformation” to frame the rise of platform economy. The platform economy is remarkable as it confirms Polanyi’s (and Marx’s before him) insight that the reach of the market is based upon increased commodification as it has been able to reach into ever more parts of social...
Cutolo, Hargadon, and Kenney explore how the power of digital platforms over social and economic activity has rendered the majority of companies dependent on them to compete. This power dynamic creates unique challenges for today's firms. In order to be successful, they argue, platform-dependent businesses must develop strategies to leverage platform resources while mitigating platform power.
This article was published in the MIT Sloan Management Review as a part of the Spring 2021 Issue.