Platform openness and value: the mediation effect of user interaction and psychological distance

Abstract

Purpose

Linking platform governance and value, the article explains how platforms manage openness, which gives users access and authority, to shape the user experience and orchestrate interactive value co-creation within their ecosystem.

Design/methodology/approach

We adopted an abductive approach, drawing on an embedded multiple case study of platform-based local alternative food networks. The strong symbolic dimension embedded into that context allowed for a full exploration of value in its interactive nature.

Findings

Platform openness influences value creation directly, but also through two mechanisms: one behavioural, involving interactions between users and sides, and the other cognitive, involving users’ abstraction level. Value co-creation goes beyond the online space and occurs in complex sets of interactions between users. Digital platforms can thus generate intrinsic value co-creation that enhances their utility.

Originality/value

We have adopted a marketing channel theory reading of openness and mobilised a broader conception of value as well as cognitive science to explain how this key element of platform governance affects value creation.