The evolution of contractual and relational governance mechanisms when platforms are actors in networks

Abstract

There is a lack of empirical research about network governance mechanisms in the inter-organisational relationship (IOR) literature. In this paper, we provide new insight by analysing how platform actors influence governance mechanisms in business networks using a comparative case study of two platforms in a B2B2C setting. The focus is on the dynamics of the governance mechanism mix over time, highlighting how important contextual factors impact the combination of formal, informal and virtual mechanisms. Three groups of contextual factors are central to the governance mechanism mix: (i) macro-level factors (e.g. market structure), (ii) network-level factors (e.g. platform scope) and (iii) inter-organisational relationship-level factors (e.g. prior history of cooperation). Our findings highlight the impact of, and the interdependencies between, the three different contextual factors on the evolution of network governance mechanisms over time when a platform is involved as a network actor.