Sharing Economy Practices in Changing Business Environment: Transaction Cost, Resource-Linking, and Hypercompetition Perspectives

Abstract

Digital business is a phenomenon that is closely related to sharing economy business in pursuit of new entrepreneurial opportunities in Indonesia. This article aims to analyze the changing business environment because of the disruption from sharing economy practices, as well as analyze the competitive dynamics between the disruptors. The results show that sharing economy practices can change the business environment through differences in transaction costs within the cost structure and by capturing opportunities beyond the existing market through resource-linking strategies. The comparison study of Go-Jek, Grab, and Uber shows that the growth trajectory of sharing economy startups can be triggered by hypercompetition among them as the market leader.