Comparing Platform Business Models: A Balanced Scorecard Approach based on the Platform Business Model Canvas
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Purpose: To remain competitive, companies need to understand how to innovate their platform business models to be successful. Thus, being able to compare platform businesses is key. Literature shows that there is no proven approach to compare platform business models. This paper fills this gap by following the design science approach to develop a management tool based on the balanced score card and the platform business model canvas by Eisape. The platform business model components are clustered according to the balanced scorecard perspectives and interlinked according to their influence onto success. This paper identifies key performance indicators for successful platform business models and tests the model by comparing the (platform) business models of Airbnb, Marriott and Uber.
Methodology: This research methodically follows the Design Science Framework by March & Smith. Within this framework the components of the Platform Business Model Canvas introduced by Eisape are analyzed using the Balanced Scorecard Approach. A model is developed and tested employing literature review, three case studies (Uber, Airbnb, Marriott) and visualizes key performance indicators in a Radar Diagram Profile.
Findings/Contribution: Firstly, this research directly corresponds to the scientific discussion in literature on how platform business models can be compared by key performance indicators, that are quite generic and therefore true to most platforms. Secondly, this research allows for practitioners to use the developed tool in their strategic management, for platform business model innovation in a competitive environment.