*Non-Market Strategies and disruptive innovation in the platform economy*

*Guest Co-Editors:*

*Zaheer Khan (University of Aberdeen) Email: [log in to unmask]
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*Gary Knight (Willamette University, USA) Email: **[log in to unmask]*
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*Chinmay Pattnaik (University of Sydney, Australia) Email: *
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*Jing (Maggie) Zeng (University of Kent, UK) Email:* *[log in to unmask]*
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*Supervising Editor:*

*Tazeeb Rajwani (University of Surrey, UK)*

*Background and rationale for the special issue*

Platform-based firms are creating disruptive innovation which enable these
firms to create and capture value (e.g., Gawer & Cusumano, 2002, 2014).
Despite these firms ability to create value and having network effects, yet
these firms are facing challenges in establishing legitimacy in
international markets, thus understanding how these firms engage in
non-market strategies both internally and externally with their industry
partners to establish legitimacy across different markets is vital
important. Recently, there has been an increasing research interest in
understanding the drivers and mechanisms of non-market strategies adopted
by firms across both developed and emerging markets (e.g., Boddewyn, 2016;
Frynas et al., 2018; Mellahi et al., 2016; Rao-Nicholson et al., 2019;
Rodgers et al., 2019). While existing research has focused on examining
non-market strategies adopted by traditional firms as well as the key
antecedents and performance consequences of such strategies (e.g., Hillman
et al., 2004; Mellahi et al., 2016; Rajwani & Liedong, 2015; Rao-Nicholson
et al., 2018). These studies have enhanced our understanding about the
drivers and performance outcomes of non-market strategies of traditional
firms, yet this research has not been extended to the context of
platform-based firms. Recently, platforms oriented firms such as Uber and
Airbnb have emerged as unique categories of firms which are competing on
the basis of their platform and are playing a vital role in the global
economy. These types of firms have emerged by utilizing multisided
platforms and have connected customers and network partners by using their
unique platforms (Rochet & Tirole, 2003; Hagiu & Wright, 2015; Zeng, Khan &
De Silva, 2019). Platform firms mainly depend on direct and indirect
networks in order to generate economic value and develop disruptive
innovations (Katz & Shapiro, 1994; Rochet & Tirole, 2003; Gawer & Cusumano,
2014; Hagiu, 2014; McIntyre & Srinivasan, 2017; Chen et al., 2019; Zeng et
al., 2019). The role of the customers, in this context, is fundamentally
changing the dynamics of the marketplace and becoming more empowered due to
the market has now become a forum in which consumers play an active role in
creating and competing for value. Such external resource interaction is
often influenced by the embedded local culture, rules and regulations which
require sound stakeholders’ management strategies.

Due to the rapid rise of digitization, the whole ecosystems of platforms
based firms have emerged on a global scale (e.g., Gawer, 2011; Gawer &
Cusumano, 2014; Zeng et al., 2019). These firms are rapidly
internationalizing across the globe, but at the same time are facing
several challenges. One of the major challenges these firms have faced in
foreign markets is how to establish legitimacy when the political and legal
environments in host markets are quite different to the home environment
where the platform based firms was originated. This is particularly
pertinent for platform based firms as they mainly rely on external resource
interaction to create value. For instance, Uber has faced challenges in
foreign markets, including developed and emerging markets where the company
has to deal with licensing issues and has tried both market and non-market
responses, including lobbying and users’ support tactics to overcome such
challenges. Current research focuses on understanding the rise of sharing
economy based firms and how such firms are creating value through the use
of platforms as well as their internalization (e.g., Parente et al., 2018;
Zervas et al., 2017; Zeng & Khan, 2019). Yet the non-market strategies
adopted by the platforms firms are not well known and sufficiently examined
since these firms are facing significant legitimacy related challenges in
foreign markets. Platform often operate in an ecosystem that encompass
various institutional actors such as third party developers, customers,
government agencies, local communities and even competitors. Thus,
understanding these firms non-market strategies would provide new insights
to how such firms respond to the non-markets’ stakeholders and whether
these strategies add value for the platforms firms. Since firms operate in
both market and non-market environments thus responding to the concerns and
interests of non-markets’ stakeholders is important for firms to develop
legitimacy and sustainable competitive advantage. Non-market strategies
refer to all those activities that are undertaken to address the issues of
non-markets’ actors such as community, policy makers, NGOs, media and
social activists, among others. Firms need to have market response to
address market environmental related issues such as how to compete with
competitors, how to serve customers and coordinate activities with their
supply chain partners. Increasingly, non-markets are becoming extremely
important and firms’ survival and performance depend on developing viable
non-market strategies in order to not only establish legitimacy, but also
develop sustainable competitive advantage across markets.

Therefore, understanding stakeholders’ management/engagement by platform
oriented firms through non-market strategies could significantly enhance
our existing understanding of the performance and survival of these firms
in international markets. Recent scholarship suggests that research is
needed which can provide insights on how firms can “manage the
relationships with the specific stakeholder groups in an action-oriented
way” (e.g., Freeman 2010, p. 53; Dorobantu et al. 2017). Understanding how
firms manage stakeholders’ relationships with different types of
stakeholders across different economic and political environments remains
an important question that has been relatively underexplored.

The aim of this special issue is to encourage scholars to examine the
non-market strategies adopted by sharing economy-based firms and how such
strategies are different compared to traditional firms. We seek multi
perspectives (micro, meso and macro level) theory testing as well as theory
building papers that can provide new insights about the antecedents of
non-market strategies and performance consequences for the sharing economy
based firms.

*Potential Topics*

We seek papers on the following and other relevant topics:

   1. Stakeholder management, microfoundations, non-market strategies and
   disruptive innovation by platform firms
   2. Interactions with formal and informal institutions, stakeholders
   management and non-market strategies and platform-based firms’ innovation
   3. Stakeholders’ engagement and knowledge transfer across subsidiaries
   for non-market strategies
   4. Value creation, stakeholders’ management through non-market strategies
   5. Sharing economy’s firms engagement with local value chains through
   non-market strategies and disruptive innovation
   6. Negotiation and relationship management strategies in international
   markets by sharing economy firms
   7. Comparative studies on non-market strategies adopted by sharing
   economy’s firms vs. traditional firms in different institutional settings
   8. Role of the top management team and corporate boards in shaping
   non-market strategies of platform firms in developed and
   emerging/developing markets
   9. Legitimacy and stakeholder management through non-market strategies
   across developing and developed markets by sharing economy firms and impact
   on disruptive innovation
   10. Impact of non-market strategies on performance
   11. Firm’s capability to develop, modify and renew resources to drive
   ecosystem coordination and disruptive innovation through the use of
   non-market strategies
   12. How do corporate headquarters’ strategize non-market strategy in the
   sharing economy context, in comparison to the industrial age?
   13. How does non-market strategy differ between developed and emerging
   market for sharing economy firms?

The deadline of paper submission to this special issue is 30 November 2020.
All papers will be subject to double‐blind review process. Papers for this
issue should be prepared as per the Journal’s guidelines available at:

Authors should submit an electronic copy of their manuscript by via the
journal’s online submission system via


Boddewyn, J. (2016). International business–government relations research
1945–2015: concepts, typologies, theories and methodologies, *Journal of
World Business*, 51, 10-22.

Chen, L., Shaheer, N., Yi, J., & Li, S. (2019). The international
penetration of ibusiness firms: Network effects, liabilities of
outsidership and country clout. *Journal of International Business Studies*,
50(2), 172-192.

Dorobantu, S., Henisz, W., & Nartey, L. (2017). Not all sparks light a
fire: Stakeholder and shareholder reactions to critical events in contested
markets, Administrative Science Quarterly, 62(3), 561–597.

Freeman, R.E. (2010). *Strategic management: A stakeholder approach*,
Cambridge University Press, Cambridge, UK.

Frynas, J.G., Child, J., & Tarba, S.Y. (2017). Non‐market Social and
Political Strategies–New Integrative Approaches and Interdisciplinary
Borrowings. *British Journal of Management*, 28(4), 559-574.

Gawer, A. (2011). *Platforms, markets and innovation*. Edward Elgar
Publishing, UK.

Gawer, A., & Cusumano, M.A. (2014). Industry platforms and ecosystem
innovation. *Journal of Product Innovation Management*, 31(3), 417-433.

Gawer, A., & Cusumano, M.A. (2002). Platform leadership: How Intel,
Microsoft, and Cisco drive industry innovation (Vol. 5, pp. 29-30). Boston,
MA: Harvard Business School Press.

Hagiu, A. (2014). *Strategic decisions for multisided platforms*. MIT press.

Hagiu, A., & Wright, J. (2015). Multi-sided platforms. *International
Journal of Industrial Organization*, 43, 162-174.

Hillman, A. J., Keim, G. D., & Schuler, D. (2004). Corporate political
activity: a review and research agenda, *Journal of Management*, 30,

Katz, M.L., & Shapiro, C. (1994). Systems competition and network
effects, *Journal
of economic perspectives*, 8(2), 93-115.

McIntyre, D.P., & Srinivasan, A. (2017). Networks, platforms, and strategy:
Emerging views and next steps. *Strategic Management Journal*, 38(1),

Mellahi, K., Frynas, J.G., Sun, P., & Siegel, D. (2016). A review of the
nonmarket strategy literature: towards a multi‐theoretical
integration, *Journal
of Management*, 42, 143–173.

Parente, R.C., Geleilate, J.M.G., & Rong, K. (2018). The sharing economy
globalization phenomenon: a research agenda. *Journal of International
Management*, 24(1), 52-64.

Rajwani, T., & Liedong, T.A. (2015). Political activity and firm
performance within nonmarket research: A review and international
comparative assessment. *Journal of World Business*, 50(2), 273-283.

Rao‐Nicholson, R., Khan, Z., & Marinova, S. (2019). Balancing social and
political strategies in emerging markets: Evidence from India. *Business
Ethics: A European Review*, 28(1), 56-70.

Rochet, J.C., & Tirole, J. (2003). Platform competition in two‐sided
markets. *Journal of the European Economic Association*, 1(4), 990-1029.

Rodgers, P., Stokes, P., Tarba, S., & Khan, Z. (2019). The role of
non-market strategies in establishing legitimacy: The Case of Service MNEs
in emerging economies. *Management International Review*, 59(4), 515-540.

Zeng, J., Khan, Z., & De Silva, M. (2019). The Emergence of Multi-sided
Platform MNEs: Internalization Theory and Networks. *International Business
Review*, 28(6), p.101598.

Zeng, J., & Khan, Z. (2019). Value creation through big data in emerging
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Zervas, G., Proserpio, D., & Byers, J.W. (2017). The rise of the sharing
economy: Estimating the impact of Airbnb on the hotel industry. *Journal of
Marketing Research*, *54*(5), 687-705.

*Special Issue Editors:*

*Zaheer Khan *is Professor in International Business at Kent Business
School, University of Kent, UK. He is also a visiting Professor of
International Business at the School of Marketing and Communication,
University of Vaasa, Finland. He is the executive editor of International
Journal of Multinational Corporation Strategy and sits on the editorial
board of Journal of World Business, British Journal of Management, Journal
of Knowledge Management and Multinational Business Review. His research
focuses on global technology management with a particular focus on
knowledge transfer through FDI to emerging markets. His work has appeared
in leading journals such as the *Journal of International Business Studies*
, *Journal of World Business*, the *Global Strategy Journal*, *International
Business Review*, *Human Relations*, *Management International
Review*, *British
Journal of Management*, and *Human Resource Management*, among others.

*Gary Knight *is Professor of Global Management and the Helen Jackson Chair
in International Management at Willamette University, USA. He is a Fellow
of the Academy of International Business and elected Vice President of the
Academy of International Business. He is the recipient of the Decade Award
from the Academy of International Business for his work on born globals. He
has co-authored seven books, including two textbooks on international
business. He has won awards for teaching at Willamette University and at
Florida State University (FSU). Gary’s research emphasizes “born globals”,
international entrepreneurship, internationalization, international
marketing, and technology’s role in international business. His work has
appeared in leading journals, including the *Journal of International
Business Studies*, *Journal of World Business*, *Management International
Review*, *International Business Review*, and *Journal of the Academy of
Marketing Science*, among others. He is ranked one of the top 15 most cited
scholars in International Business at Google Scholar, and one of the most
cited scholars in International Marketing. Prior to joining academia, Gary
was an executive in international business for several years, focusing on
Europe, Japan, and Mexico.

*Chinmay Pattnaik* is a Senior Lecturer at the Discipline of International
Business, the University of Sydney Business School, Australia. He serves as
the reviewing editor at the Asia Pacific Journal of Management. His
research focuses on the corporate and global strategies of firms from
emerging economies. His research has appeared in journals including *Journal
of International Business Studies*, *Journal of Business Ethics*, *Human
Resource Management*, *Management International Review*, and *Journal of
Business Research*. His coedited book Emerging Market Firms in Global
Economy is published by Emerald Publishing UK.

*Jing (Maggie) Zeng* is a Senior Lecturer in Entrepreneurship at Kent
Business School, University of Kent, UK. Her research focuses on emerging
strategies in the digital economy, business ecosystem, dynamic capabilities
and innovation and value creation through big data in emerging markets. Her
work has appeared in leading journals such as the *British Journal of
Management*, *Management International Review*, *International Business
Review*, *Industrial and Corporate Change*, *Management and Organization
Review*, and *Strategic Organization*, among others.

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