In HBS Working Knowledge. Thoughtful distinction. Traditional v Platform mode.
Enabling Versus Controlling
by Andrei Hagiu and Julian Wright
Widespread adoption of Internet and mobile technologies has made it possible to build marketplaces and platforms for a rapidly increasing variety of services, from house cleaning to programming, consulting and legal advice. Highlighting the tradeoffs, this paper studies a firm's choice between two modes of organization—a traditional mode versus a platform mode—where the key difference between the two modes is that professionals hold more control rights over service provision in the platform mode than in the traditional mode. .... "
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