Antecedents to digital platform usage in Industry 4.0 by established manufacturers

Abstract

Digital platforms are expected to have the potential for a multitude of purposes for industrial enterprises, for instance when integrated within the concept of Industry 4.0. Despite its relevance for industrial value creation, little research on platforms in the industrial context has been undertaken so far. Owing to the lack of research in this field, the paper aims to investigate the potentials and challenges of digital platforms in order to generate an understanding of the antecedents to the use of digital platforms by established manufacturers. In the qualitative-exploratory study, the paper uses a qualitative empirical research approach, relying on in-depth expert interviews. The sample comprises interviews with managers of 102 German and Austrian industrial enterprises from several industrial sectors. All of the enterprises regarded have practical experiences with digital platforms. The results show that the main potentials of digital platforms are reducing transaction costs, combining strengths of enterprises, and realizing economies of scale as well as economies of scope. Yet, digital platforms bring challenges, such as a lack of trust, competitive thinking, high coordination efforts, and loss of confidential information. The paper further distinguishes between various industry sectors revealing interesting differences. Based on the results, the paper indicates possibilities for future research and provides corporate practice with implications.