Collaborating with new downstream platform entrants: Evidence from the restaurant industry – UROP Spring Symposium 2022

Collaborating with new downstream platform entrants: Evidence from the restaurant industry

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Ameesha Paralikar

Pronouns: she/her

Research Mentor(s): Christine Choi
Co-Presenter:
Research Mentor School/College/Department: Ross/ Strategy / Business
Presentation Date: April 20
Presentation Type: Poster
Session: Session 1 – 10am – 10:50am
Room: League Ballroom
Authors: Christine Choi, Ameesha Paralikar
Presenter: 39

Abstract

This study examines how offline firms’ (potential complementors’) characteristics influence their decision to join an entrant platform. We hypothesize that that restaurants are more likely to join an entrant platform when they can create value by incurring lower costs to form a new partnership or appropriate more value by inciting competition between platforms. To test our predictions, we heavily utilized archival and qualitative data to analyze and compile data on restaurants and their partnerships. Upon DoorDash entering Portland, Oregon in 2018, our results show that restaurants already working with at least one other food delivery platform were more likely to join DoorDash. Further analysis, however, showed that this positive relationship diminishes for restaurants with a wider reach to offline customers, rigid capacity limitations, and multiple units. The implications of such conclusions involve new insight regarding business strategy for entrance platforms and competitive advantage in markets distinguished by network effects. This research also contributes to multihoming literature by suggesting that interdependencies between new and pre-existing partnerships could affect a firm’s decision to join new platform partnerships

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Social Sciences

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