TY - JOUR
T1 - Demand-Side Economies of Scope in Big Tech Business Modelling and Strategy
AU - Henten, Anders Hansen
AU - Windekilde, Iwona
PY - 2022/12
Y1 - 2022/12
N2 - The purpose of the paper is to discuss the issue of economies of scope in platform research and to attract attention to the importance of scope economies for the strength and growth of Big Tech corporations. Hitherto, most attention has been on network effects and demand-side economies of scale, on the role of platforms in lowering transaction costs, and on the importance of big data. More specifically, the research question addressed in this paper is how economies of scope, driven by the demand side, contribute to the strength of successful Big Tech corporations. The answer is related to two aspects: one is concerned with bundling of services and products, and the other with the acquisition and processing of data on users and their activities using digital services and applications.
AB - The purpose of the paper is to discuss the issue of economies of scope in platform research and to attract attention to the importance of scope economies for the strength and growth of Big Tech corporations. Hitherto, most attention has been on network effects and demand-side economies of scale, on the role of platforms in lowering transaction costs, and on the importance of big data. More specifically, the research question addressed in this paper is how economies of scope, driven by the demand side, contribute to the strength of successful Big Tech corporations. The answer is related to two aspects: one is concerned with bundling of services and products, and the other with the acquisition and processing of data on users and their activities using digital services and applications.
KW - Scope economies
KW - Big Tech
KW - Business modelling
KW - demand-side economies of scope
KW - economies of scale
KW - Big Tech corporations
KW - business models
U2 - 10.3390/systems10060246
DO - 10.3390/systems10060246
M3 - Journal article
SN - 2079-8954
VL - 10
SP - 1
EP - 10
JO - Systems
JF - Systems
IS - 6
M1 - 246
ER -