Demand-Side Economies of Scope in Big Tech Business Modelling and Strategy

Anders Hansen Henten, Iwona Windekilde

Research output: Contribution to journalJournal articleResearchpeer-review

2 Citations (Scopus)
84 Downloads (Pure)

Abstract

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.
Original languageEnglish
Article number246
JournalSystems
Volume10
Issue number6
Pages (from-to)1-10
Number of pages19
ISSN2079-8954
DOIs
Publication statusPublished - Dec 2022

Keywords

  • demand-side economies of scope
  • economies of scale
  • Big Tech corporations
  • business models

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