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ABSTRACT
With the rapid development of the platform economy, platforms are evolving beyond their traditional role as intermediaries to actively participate in transactions. Platform-owner entry refers to the practice of platforms directly providing products or services. Grounded in coopetition theory, this study investigates the determinants influencing platform-owner entry in the context of second-hand trading platforms. Based on empirical analysis of secondary data from a leading second-hand trading platform in China, the findings reveal that platforms are more likely to enter markets characterized by higher product prices and greater popularity, aiming to maximize profits. Furthermore, platforms enter to balance supply and demand, thereby addressing customers' product needs. While prior research has predominantly focused on platform-owner entry in first-hand trading platforms, this study bridges a critical gap by examining the unique dynamics of second-hand trading platforms, including the dual roles of complementors and the distinctive attributes of second-hand products. The findings underscore the complementary role of platform-owner entry in the coopetitive relationship between platform owners and complementors. This study provides meaningful insights for future research and practical guidance for second-hand trading platform operators, enabling them to develop effective entry strategies that support sustainable platform growth.
Keywords: Platform-owner entry; Platform economy; Second-hand trading platforms; Complementor
1. Introduction
In recent years, with the development of the platform economy, platform-owner entry has become a significant issue for both platform operators and scholars, who must consider how to balance the interests of complementors and the platform itself toward sustainability. Platform-owner entry refers to the dual role of platforms as both intermediaries and product suppliers by offering products and services directly, which is significantly related to the sustainable development of the platform (Zhu and Liu, 2018).
Second-hand trading platforms, as a result of green consumption and internet development, have become a new scenario to study platform-owner entry on the basis of diverse attributes and characteristics. C2B2C is the particular model adopted by second-hand trading platforms. Complementors sell their own items to the platform. The platform then provides product inspection, processing, maintenance, and refurbishment services to resell the renewed products to customers.
Existing studies have examined the effects of platform-owner entry on complementors and customers. However, they have only focused on first-hand trading platforms (Jiang et al., 2011; Qi et al., 2024;...