“Distinctiveness–Conformity” Paradox: How to Leverage Digital Platform Capabilities to Enhance SMEs Ecological Niches

Abstract

The construction and enhancement of ecological niches are essential for small and medium-sized enterprises (SMEs), with digital platforms serving as key carriers for achieving niche improvement. However, SMEs encounter a “distinctiveness–conformity” paradox when leveraging digital platforms: they are expected to sustain differentiation to attract resource tilt while simultaneously integrating into the platform ecosystem to obtain a sense of belonging and complementary resources. Grounded in optimal distinctiveness theory, this study analyzes questionnaire data from 383 Chinese SMEs embedded in digital platforms. Results show that digital platform capabilities (integration and reconfiguration) enhance SMEs ecological niches through organizational agility and platform eco-embeddedness. Polynomial regression and response surface analyses reveal that balanced improvement in organizational agility and eco-embeddedness significantly strengthens niche enhancement, whereas imbalance between the two weakens it. This research clarifies how SMEs leverage digital platform capabilities to advance their ecological niches, offering theoretical and practical insights for achieving strategic balance between distinctiveness and conformity in digital platform ecosystems.