Strategic focus in Digital Platforms: Capability alignment for sustainable success.
Basu, Amit
Basu, Amit
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Conference Proceeding
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2025
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Abstract
Strategic focus in Digital Platforms: Capability alignment for sustainable success. Digital platform capabilities are often studied in isolation from a platform’s broader strategic focus. At the same time, many platforms are expanding their core functionality in an effort to become “Super Apps”; while this strategy offers opportunities for revenue diversification, it can backfire, as with X (formerly Twitter)’s pivot toward an “everything app”. We present a conceptual model that links platform processes and capabilities to three distinct strategic activity types: transaction, engagement, and innovation. In contrast to prior research, our model emphasizes the importance of strategic focus, showing that platforms aligning their capabilities with a clear strategic direction are more likely to achieve sustainable success, whereas overly broad strategies tend to undermine platform performance. The model is validated by an extensive literature review and multiple case study research.
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Digital, Digital Platform