Quantity or quality? Value creation in two-sided platforms

Two-sided platforms emerged as a more common business model, mainly due to the spread of digital technologies. Economic literature suggests a ‘quantity’-driven strategy to enhance the cross-side network externalities at the basis of the system. Nevertheless, the widespread of this business model lets emerge different peculiarities worth exploring. This research aims to examine the role of a ‘quality’-driven strategy in welcoming players on the platforms’ sides in the value perceived by the other side. The research is based on a qualitative study develop through eight case studies based on primary and secondary sources. Five of them let emerge a ‘quantity’-driven strategy, while three of them a ‘quality’-driven strategy, which is presented and discussed regarding the type of platforms. From a theoretical perspective, it distinguishes ‘quantity’-driven from ‘quality’-driven strategies in bringing players onboard on the platform, expanding the literature that considered quality as a main characteristic of the platform provider, rather than the players on it. Moreover, it suggests a strong link with the lifecycle phase. From a managerial perspective, it highlights operational tactics for both ‘quantity’-driven and ‘quality’-driven strategies and – more importantly – it suggests a possible integration of the two strategies.