Value creation in digital platform: A critical review

Despite the growing significance of digital platforms (DPs), the nature and dynamics of value creation of this phenomenon remain inadequately understood in the digital platform economy. We address this gap through conceptual development grounded in a systematic review and develop an evidence-based framework that delineates the idiosyncrasy of value creation process within DPs. Specifically, we analyse the three crucial elements of this process: antecedents, mechanisms, and outcomes. Notably, we categorised four key mechanisms (ecosystem interconnectivity, digital network effect, user-centric orchestration and business logic hybridisation) that collectively provide a comprehensive understanding of the essence of value creation within DPs. We further theorise actor duality as a defining condition of platform value creation, explaining how the same actors contribute resources, data, knowledge, services, or content while simultaneously receiving value from participation. Our study contributes to the literature on DPs and value creation by providing a comprehensive and coherent understanding of the phenomenon in the digital platform economy, highlighting its implications for both academic research and managerial practice, and offering a structured framework for future research.