Exploiting incumbents' potentialities: From linear value chains to multisided platforms

Two-sided (or multisided) platforms are significantly transforming the competitive landscape. Companies like Airbnb and Uber entered and challenged traditional industries by adopting business models able to innovatively exploit the opportunities provided by digital technologies. Recent studies have pointed out that the characteristics of multisided platforms might inspire traditional businesses to foster innovation, enabling different kinds of value creation and capture. This paper aims to explore this possibility through a longitudinal case study of an Italian tour operator that moved from a traditional linear value chain model to a multisided platform. Relying on the literature about multisided platforms and the modalities adopted by incumbents in fostering innovation, this research offers contributions to both theory and practice. Firstly, it shows how incumbents can reinterpret their resources and relationships in order to conceive new multisided platforms. Secondly, it investigates how the experience gained by incumbents can unveil technological opportunities. Thirdly, it shows how the incumbents can manage complexity and adopt a systemic perspective in developing multisided platforms. Thus, the contribution to the academic dimension is in enriching the knowledge of how multisided platforms can help incumbents in dealing with their ‘typical curse’.