Binary Governance Mode of Digital Platforms-An Exploratory Case Study from the Perspective of Value Co-creation

Abstract

Abstract: The digital economy has given rise to numerous new technologies, deeply transforming the development environment and inter-action mode of digital platforms, and reconstructing their governance modes and mechanisms. The core issue of digital platform govern-ance lies in how to manage participants for value co-creation and promote healthy platform development. Based on the perspective of value co-creation, this paper explores the governance modes and mechanisms of digital platforms. Through a longitudinal case study of 51WORLD, a leading digital platform in the digital twinning field, this paper proposes a binary governance mode that integrates digital and non-digital governance. In the initial stage, platform owners employ resource integration mechanisms and reputation governance mechanisms to stimulate participants' capabilities and willingness for value co-creation, thus achieving foundational value co-creation. In the growth stage, platform owners utilize technology adaptation mechanisms and multilateral trust mechanisms to enhance participants' capabilities and willingness for value co-creation, thus achieving scalable value co-creation. In the mature stage, platform owners employ technology sharing mechanisms and benefit commitment mechanisms to reinforce participants' willingness and capabilities for value co-creation, thus realizing sustained value co-creation. Through in-depth analysis, we find that digital governance and non-digital governance have both complementary and reinforcing effects, with digital governance enhancing participants' ability for value co-creation and non-digital governance stimulating their willingness for value co-creation, both of which jointly promote the realization of value co-creation by participants. The research conclusion reveals the multi-dimensional structure of digital platform governance, deepens our un-derstanding of the relationship between digital and non-digital governance, contributes to the development of digital platform governance theory and the connotation of governance mechanisms, and provides a new perspective and theoretical support for digital platform govern-ance.

Key words: digital platform, binary governance mode, governance mechanisms, value co-creation

Tang Fangcheng, Pei Lijuan, Dong Caiting, Song Yutao. Binary Governance Mode of Digital Platforms-An Exploratory Case Study from the Perspective of Value Co-creation[J]. Management Review, 2024, 36(5): 276-288.

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