Liminal movement by digital platform‐based sharing economy ventures: The case of Uber Technologies

Garud, Raghu; Kumaraswamy, Arun; Roberts, Anna; Xu, Le

doi:10.1002/smj.3148

Cited by 274Sharing Economy and PlatformsDigital Platforms and EconomicsDigital Economy and Work Transformation

Liminal movement by digital platform‐based sharing economy ventures: The case of Uber Technologies

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Garud, Raghu, Kumaraswamy, Arun, Roberts, Anna, Xu, Le·2022·Strategic Management Journal

DOI 10.1002/smj.3148

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Abstract

Research Summary: We explore the challenges that digital platform‐based sharing economy ventures confront in establishing legitimacy for their business models by examining the dynamics that ensued when Uber Technologies deployed its ridesharing business model in four U.S. cities. Uber entered each city to jump‐start network effects by establishing cognitive legitimacy while deepening a sociopolitical legitimacy crisis that emerged due to mismatches between its business model and existing regulations. Operating between existing categories, Uber used a series of interrelated market and nonmarket strategies, which we label as liminal movement, to generate cognitive and sociopolitical legitimacy. Managerial Summary: Sharing economy ventures based on digital platforms confront market and institutional challenges in each context they enter. On entry, these ventures must rapidly build an ecosystem of users and service providers, and engage with local regulators, administrators, and social groups in order to gain acceptance. The key to a venture's survival and success is liminal movement or in other words, its ability to adapt its digital platform and business model to continually leverage opportunities and address concerns as they emerge.

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There are manifold examples of consolidation in the food delivery or ride hailing industry.
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From Digital platform ecosystems in flux: From proprietary digital platforms to wide-spanning ecosystems (2023) · cites this paper as Garud et al., 2022

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Authors: Garud, R., Kumaraswamy, A., Roberts, A., & Xu, L.
Affiliations: Pennsylvania State University (US)
Florida International University (US)
Corresponding author: Garud, Raghu
ORCID: Garud, Raghu
Kumaraswamy, Arun
Roberts, Anna
Xu, Le
Venue: Strategic Management Journal
Publisher: Wiley
Published: 2020-04-21
Volume: 43
Issue: 3
Pages: 447-475
ISSN: 0143-2095 (ISSN-L)
1097-0266
DOI: 10.1002/smj.3148
OpenAlex: W3013335303
Cited by: 274
References: 117
Citations by year: 2026: 38 · 2025: 57 · 2024: 59 · 2023: 55 · 2022: 38 · 2021: 21 · 2020: 5 · 2019: 1
FWCI: 30.72
Type: journal article
Language: en
Open access: green
doi.org
Licence: onlinelibrary.wiley.com/termsAndConditions#vor (vor)
Locations: Strategic Management Journal (publishedVersion)
SSRN Electronic Journal (acceptedVersion)
Funders: Smeal College of Business at Pennsylvania State University
Topics: Social Sciences › Business, Management and Accounting › Marketing › Sharing Economy and Platforms
Social Sciences › Business, Management and Accounting › Strategy and Management › Digital Platforms and Economics
Social Sciences › Sociology and Political Science › Digital Economy and Work Transformation
Keywords: sharing economy, digital platforms, Uber, ride-sharing, cognitive legitimacy, network effects, business model adaptation

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Liminal movement by digital platform‐based sharing economy ventures: The case of Uber Technologies

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