Platform data strategy

Platforms create value by enabling interactions between consumers and external producers through infrastructures and rules. We define platform data strategy to encompass all data-related rules undertaken by platforms to foster competitive advantage over the long term. Platform firms face growing pressure to increase accountability for how they use data; yet, an explicit treatment of platforms’ data strategies and a systematic discussion of forces influencing such data-related choices are absent in the academic literature. We articulate how a platform’s data strategy varies based on platform type and business circumstances. Given the interdependencies within a platform’s ecosystem, its data strategy must balance incentives of all stakeholders. Besides discussing these topics, the paper identifies promising research opportunities in platform data strategy to better inform future academic research, strategic decision-making, and regulatory analysis.