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Tuesday, July 21, 2015

On Enabling vs Controlling

In HBS Working Knowledge.  Thoughtful distinction.  Traditional v Platform mode.

Enabling Versus Controlling
by Andrei Hagiu and Julian Wright

Widespread adoption of Internet and mobile technologies has made it possible to build marketplaces and platforms for a rapidly increasing variety of services, from house cleaning to programming, consulting and legal advice. Highlighting the tradeoffs, this paper studies a firm's choice between two modes of organization—a traditional mode versus a platform mode—where the key difference between the two modes is that professionals hold more control rights over service provision in the platform mode than in the traditional mode.  .... "

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