Leveraging External Platforms in Digital Transformation: A Case Study of Motivations and Challenges for Non-focal Actors

Fredrik T. Haugstulen & Hege S. Hovd

Student thesis: Master thesis

Abstract

Digital transformation requires extensive capabilities which many firms are not able to attain. Consequently, firms will increasingly use external digital infrastructures provided by tech giants in order to extend their own capabilities. The majority of these firms are considered non-focal actors, meaning they are at the periphery of digital infrastructures and have no influence on them at all. The success of non-focal actors is determined by their ability to leverage innovations from the outside made available to them in ecosystems of external platforms. Without any bargaining power, non-focal actors are forced to continuously accommodate to terms of platform owners. We suggest three recommendations that can guide non-focal actors that leverage external platforms in digital transformation. Following these recommendations, non-focal firms will strengthen their abilities to leverage external platforms and thrive in digital transformation.

EducationsMSc in Business Administration and Information Systems, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2021
Number of pages81