TY - JOUR
T1 - Liminal movement by digital platform-based sharing economy ventures
T2 - The case of Uber Technologies
AU - Garud, Raghu
AU - Kumaraswamy, Arun
AU - Roberts, Anna
AU - Xu, Le
PY - 2020
Y1 - 2020
N2 - Research Summary: We explore the challenges that digital platform-based sharing economy ventures confront in establishing legitimacy for their business models by examining the dynamics that ensued when Uber Technologies deployed its ridesharing business model in four U.S. cities. Uber entered each city to jump-start network effects by establishing cognitive legitimacy while deepening a sociopolitical legitimacy crisis that emerged due to mismatches between its business model and existing regulations. Operating between existing categories, Uber used a series of interrelated market and nonmarket strategies, which we label as liminal movement, to generate cognitive and sociopolitical legitimacy. Managerial Summary: Sharing economy ventures based on digital platforms confront market and institutional challenges in each context they enter. On entry, these ventures must rapidly build an ecosystem of users and service providers, and engage with local regulators, administrators, and social groups in order to gain acceptance. The key to a venture's survival and success is liminal movement or in other words, its ability to adapt its digital platform and business model to continually leverage opportunities and address concerns as they emerge.
AB - Research Summary: We explore the challenges that digital platform-based sharing economy ventures confront in establishing legitimacy for their business models by examining the dynamics that ensued when Uber Technologies deployed its ridesharing business model in four U.S. cities. Uber entered each city to jump-start network effects by establishing cognitive legitimacy while deepening a sociopolitical legitimacy crisis that emerged due to mismatches between its business model and existing regulations. Operating between existing categories, Uber used a series of interrelated market and nonmarket strategies, which we label as liminal movement, to generate cognitive and sociopolitical legitimacy. Managerial Summary: Sharing economy ventures based on digital platforms confront market and institutional challenges in each context they enter. On entry, these ventures must rapidly build an ecosystem of users and service providers, and engage with local regulators, administrators, and social groups in order to gain acceptance. The key to a venture's survival and success is liminal movement or in other words, its ability to adapt its digital platform and business model to continually leverage opportunities and address concerns as they emerge.
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U2 - 10.1002/smj.3148
DO - 10.1002/smj.3148
M3 - Article
AN - SCOPUS:85083714316
JO - Strategic Management Journal
JF - Strategic Management Journal
SN - 0143-2095
ER -