Strategic configuration of platform functionalities in service-selling Platforms: The role of price position and reputation

Abstract

Retailers are increasingly employing platform functionalities to strengthen their competitive advantage in service-selling platforms. However, there is still a gap in research about how they strategically configure these functionalities to enhance performance. Drawing on configuration theory, we propose a framework that integrates platform functionalities with contingency factors (price position and reputation). Using fuzzy set qualitative comparative analysis (fsQCA), we analyze data from a leading Chinese service-selling platform to explore how, and under what conditions, platform functionalities enable retailers to improve performance. The results show that retailers should configure platform functionalities based on different conditions of price position and reputation, as these configurations play a crucial role in driving sales performance. Interestingly, this study reveals that retailers can still attain high performance without a high reputation by implementing guarantee-required schemes and solution exemplars. This study not only deepens the understanding of platform functionality configurations, but also challenges the conventional view that reputation is the determining factor for retailers to achieve high performance.