How Does The Strategy,Structure And Network Effect Of The Bilateral Platform Organization Influence Each Other?

The relationship between strategy and structure is the focus of scholars in both the strategic and organizational fields.Although it has undergone intense discussions for 50 years,the current academic community still lacks a unified understanding of the relationship between strategy and structure,especially in emerging platforms.Compared with traditional organizations,platform-based organizations mainly have the following two differences:(1)In the platform where the platform-based organization is located,the organizational boundaries are blurred,and cooperation between multiple entities is enhanced.In the past,the study of the relationship between strategy and structure from the perspective of internal product management and internalization and centralization of the organization may not be consistent with the practice of multi-subject cross-border collaboration in the platform;(2)Network effect exists in the platform market.The platform is a hybrid organization that combines the dual characteristics of organization and market.It can use the bilateral or multilateral relationship to establish a network effect with unlimited value-added possibilities.The network effect interacts with the platform structure,which makes the platform Strategic and structural issues are more complex.However,the current research on the strategy,structure and network effeot of the platform is relatively lacking,and related research has become an important and urgent issue to be solved in the academic circle.The research object of this paper is not only limited to the platform organization of Dong mei Trading,but also the platform containing multiple external entities.This paper uses a single case research method to conduct an in-depth study of the interaction between the strategy,structure and network effects of the bilateral platform,and build an interactive model of platform strategy,structure and network effect.Firstly,through the analysis of existing literature,we find the deficiencies of the existing research,and then clarify the research ideas of this paper,find the logic and entry point of the analysis;secondly,use the multiple data sources to collect the case data,and carry out the subject analysis and coding.The continuous iteration between theory and initial data establishes a theoretical framework;finally,on the basis of the second round of in-depth interviews,the theoretical framework is further improved.Through case analysis,the paper draws the following three conclusions:Firstly,the matching of the relationship between the strategy and structure of the bilateral platform is essentially a two-way interactive process.It does not follow Chandler's strategic decision structure,nor does it follow the organizational follow-up structure of the organizational school,but interacts with each other.Detached.At each stage of the platform-based organization,the development priorities set out in the platform strategy lead to changes in its open interface,which directly determines the type of structure it forms.Interface openness is a key factor in the stimulation,expansion and outbreak of network effects.Platform participants work with other complementary parties through open interfaces to generate synergies and stimulate network effects.After the network effect is stimulated,expanded,and erupted,the platform uses the advantage of network effect to attract more potential participants to join,but it also puts forward new requirements for the information transmission ability in the platform,which requires the platform to cross the information boundary and realize the data arid information.Effective and timely sharing,improve communication efficiency to adapt to the network effect positive feedback brought by the scale of the platform participants.On the one hand,the improvement of the information system improves the transparency of user participation and the efficiency of communication,increases trust,improves the boundary penetration of the platform,and optimizes the organizational structure.On the other hand,it also provides a new channel for the strategic information transmission of the platform.By increasing investment,it integrates the accumulated user data resources deeply,and aggregates different data to further explore the needs of users.This will have a potential impact on the adjustment of the platform's business operations priorities,prompting the evolution of the strategy.Secondly,in the traditional industrial situation,on the basis of Chandler's strategic decision structure,Rumelt developed the "strategic-structure-performance"paradigm(SSP).Similar to the SSP paradigm,this paper finds that in the context of the Internet,There is a "SSN" paradigm in the bilateral platform,that is,"Strategy-Structure-Network Effect",and there is a reverse "network effect-structure-strategy" role path,and finally form a "strategy→ Structure→Network Effect → Structure → Strategy "feedback system.Through its unique strategic positioning and organizational structure,the bilateral platform catalyzes the network effect in the platform,which in turn drives the platform to optimize the structure to enhance the resource mobilization capacity and resource allocation efficiency,and strengthen the platform competition.The network effect of the advantage also provides the driving force for the optimization of the platform strategy.This makes a positive feedback synergy(Tee et al.,2009)similar to the typical "chicken eggs,eggs and chickens" in the network industry organization between the strategic,structural and network effects of the bilateral platforms(Tee et al.,2009).The process of mutual evolution of bilateral platform strategy,structure and network effect is the process of platform reconstruction of resources and the continuous improvement of platform integration capability.As a result,the value-creation ability of platform-based organizations has realized the transition from low-order to high-order.Thirdly,the core of the development of bilateral platforms lies in the stimulation,expansion and outbreak of platform network effects to expand the scale of the platform.The expansion of the user network scale in the platform will enhance the utility of existing users and stimulate network effects.At the same time,the network effect will also bring positive feedback,attracting a larger number of complementary products or services,bringing more value to existing users,making the network effect further expand and eventually reaching an explosive state.It can be seen that the network effect plays an important role in the development of the platform.The network effect can not only promote the rapid growth of the platform scale,but also help the platform to actively improve the information communication channel,optimize the existing organizational structure,and promote the iterative upgrade of the strategy.In this paper,the strategy and structure of the bilateral platform are deeply studied,and the co-destruction model between the strategy-structure-network effect of the bilateral platform is constructed,which provides some guidance for the platform strategy and structural transformation.The promotion of the conclusions of the single case study still needs to be improved.Therefore,if possible,do multiple case studies in the same theoretical context,or further develop more full empirical research.