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Cited by 507Digital Platforms and EconomicsDigital Economy and Work TransformationEntrepreneurship Studies and Influences

Platform-Dependent Entrepreneurs: Power Asymmetries, Risks, and Strategies in the Platform Economy

Open access
Cutolo, Donato, Kenney, Martin·2021·Academy of Management Perspectives
DOI 10.5465/amp.2019.0103
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Abstract

Online digital platforms organize and mediate an ever-increasing share of economic and societal activities. Moreover, the opportunities that platform-mediated markets offer not only attract enormous numbers of entrepreneurs, but also support the growth of entire ecosystems of producers, sellers, and specialized service providers. The increased economic and business significance of digital platforms has attracted an outpouring of studies exploring their power dynamics and general impact. This research has largely overlooked the power imbalance that entrepreneurs experience as members of the platform ecosystem and provided little guidance on how these far more numerous firms should compete. Drawing upon Emerson’s power-dependence theory, we show that the power asymmetry at the heart of the relationship between the platform and its ecosystem members is intrinsic to the economics and the technological architecture of digital platforms. We undertake a conceptual analysis of the sources of this power, and we unravel the novel component of risks that emanate from this imbalance. Our analysis suggests that the conditions of engagement for platform entrepreneurs are so different from traditional entrepreneurship that these entrepreneurs are more usefully termed “platform-dependent entrepreneurs” (PDEs). Further, we explore the strategies that PDEs are developing to mitigate their dependence. Finally, our study provides a framework for policy makers that are considering regulating platform-organized markets.

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Crossref · 10.5465/amp.2019.0103

Cites

11 of 11 references verified0 citation errors · 0 not checkable

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  • Revenue-sharing social media platforms allow users to generate income on digital platforms by providing content and receiving payment from advertising revenues.

    “Revenue-sharing social media platforms allow users to generate income on digital platforms by providing content and receiving payment from advertising revenues.”

    From Content Creators Between Platform Control and User Autonomy: The Role of Algorithms and Revenue Sharing (2023) · cites this paper as Cutolo and Kenney 2021

    The available indexed copy contains repository metadata and a link to an accepted manuscript, but no article text. Searches for revenue-sharing social media platforms and advertising payments to content creators found no passage addressing the claim. (LLM, conf=0.76)

    Experimental — accuracy not yet measured

  • Our study offers further evidence on strategies for resolving tensions and empirically reinforces some of Cutolo and Kenney's (2021) diversification strategies.

    “Our study also offers further evidence on strategies for resolving tensions and empirically reinforces some of Cutolo and Kenney’s (2021) diversification strategies.”

    From Content Creators Between Platform Control and User Autonomy: The Role of Algorithms and Revenue Sharing (2023) · cites this paper as Cutolo and Kenney’s (2021)

    The available passages from our copy are repository metadata, not the article’s discussion of strategies. A search for “diversification strategies” and “diversification” returned no passage establishing whether Cutolo and Kenney propose such strategies, so the attributed point cannot be verified from our copy. (LLM, conf=0.72)

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  • A surprisingly large proportion of content creators diversify their income to avoid dependence on certain platforms.

    “We found that a surprisingly large proportion of content creators diversify their income (Cutolo and Kenney 2021) to avoid dependence on certain platforms.”

    From Content Creators Between Platform Control and User Autonomy: The Role of Algorithms and Revenue Sharing (2023) · cites this paper as Cutolo and Kenney 2021

    The citation is attached to the statement that content creators diversify their income; the 'surprisingly large proportion' is presented as the citing authors’ own finding. The supplied passages and searches for income diversification and platform dependence return only a repository listing, not the paper’s substantive text. Our available copy therefore cannot verify the attributed point. (LLM, conf=0.72)

    Experimental — accuracy not yet measured

  • Both CPM fluctuations and platform unpredictability lead content creators to develop different revenue streams and reduce their engagement with the platform.

    “Both issues lead content creators to develop different revenue streams (Cutolo and Kenney 2021) and reduce their engagement with the platform.”

    From Content Creators Between Platform Control and User Autonomy: The Role of Algorithms and Revenue Sharing (2023) · cites this paper as Cutolo and Kenney 2021

    The supplied passages contain a repository listing and a link to the manuscript, but no substantive passage from the paper. Searches for CPM fluctuations, platform unpredictability, and diversified revenue streams found no passage addressing the part attached to this citation: developing different revenue streams. The available copy therefore cannot verify the attribution. (LLM, conf=0.72)

    Experimental — accuracy not yet measured

  • Through their diversification strategy, by generating income from different sources, content creators can be seen as independent entrepreneurs.

    “Through their diversification strategy, by generating income from different sources, they can be seen as independent entrepreneurs (Cutolo and Kenney 2021).”

    From Content Creators Between Platform Control and User Autonomy: The Role of Algorithms and Revenue Sharing (2023) · cites this paper as Cutolo and Kenney 2021

    The available indexed passages are an IRIS repository listing and a PDF file description, not the paper’s substantive text; neither has a page number. Searches for diversification, multiple income sources, independent entrepreneurs, and content creators found no passage addressing the claim. The listing cannot establish whether the paper supports it. (LLM, conf=0.74)

    Experimental — accuracy not yet measured

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Authors
Cutolo, D., & Kenney, M.
Affiliations
  • University of Bologna (IT)
  • University of California, Davis (US)
ORCID
Venue
Academy of Management Perspectives
Publisher
Academy of Management
Published
2021-11
Volume
35
Issue
4
Pages
584-605
ISSN
  • 1558-9080 (ISSN-L)
  • 1943-4529
DOI
10.5465/amp.2019.0103
OpenAlex
W3035886900
Cited by
507
References
11
Citations by year
2026: 141 · 2025: 106 · 2024: 100 · 2023: 88 · 2022: 44 · 2021: 18 · 2020: 9 · 2019: 1
FWCI
39.50
Type
journal article
Language
en
Open access
Licence
cc-by-nc-nd
Locations
  • Academy of Management Perspectives (publishedVersion)
  • Archivio istituzionale della ricerca (Alma Mater Studiorum Università di Bologna) (submittedVersion, cc-by-nc-nd)
  • IE Repository (submittedVersion, cc-by-nc-nd)
Topics
  • Social Sciences › Business, Management and Accounting › Strategy and Management › Digital Platforms and Economics
  • Social Sciences › Sociology and Political Science › Digital Economy and Work Transformation
  • Social Sciences › Business, Management and Accounting › Management of Technology and Innovation › Entrepreneurship Studies and Influences
Keywords
digital platforms, platform economy, power imbalance, power-dependence theory, platform ecosystems, entrepreneurial risk, uncertainty, platform regulation

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