The institutionalization of sharing economy platforms in China

Dun Li; Tobias Schoenherr

doi:10.1002/joom.1253

journal article Apr 27, 2023

The institutionalization of sharing economy platforms in China

Dun Li

Tobias Schoenherr

Journal of Operations Management Vol. 69 No. 5 pp. 764-793 · Wiley

View at Publisher Save 10.1002/joom.1253

Abstract

AbstractRecent past has witnessed a great proliferation of sharing economy platforms with great successes, but also many failures on their journey toward institutionalization, that is, their establishment and acceptance in society. To develop insight on factors contributing to this institutionalization process, this paper relies on the literature in institutional entrepreneurship and investigates sharing economy platforms in China, highlighting institutional voids that are encountered, and suggesting ways on how they can be overcome. These insights are derived through a multiple case study approach involving 61 semi‐structured interviews with managers from eight sharing economy platforms (DiDi, Uber China, Huochebang, Yunmanman, OfO, Mobike, Evcard, and Zhida) across four sharing economy industries in China (ride‐sharing, logistics‐sharing, bike‐sharing, and car‐sharing). The findings highlight the importance of exchange and collaboration with stakeholders (allies) in the network, as well as the effective response to emerging issues through the adaptation of the business models. In addition, mergers and acquisitions, and the role of government are identified as critical components in aiding platforms in their progression toward institutionalization. Further cognitive, regulative, and normative factors are found to represent valuable institutional pillars that serve as a fertile foundation throughout the institutionalization process. Overall, the findings provide an intriguing insight into the journey of Chinese sharing economy platforms toward institutionalization.

Topics

No keywords indexed for this article. Browse by subject →

References

106

[1]

36kr. (2017).Mobike's funding.https://36kr.com/p/1721628884993

[2]

Arshavskiy M. "Sharing economy business models: Focus on ride‐sharing" California Management Review (2018)

[3]

10.1177/0008125619876902

[4]

10.5465/19416520903053598

[5]

BBC. (2018 August 26).Didi Chuxing suspends carpool service after woman killed.BBC News.https://www.bbc.com/news/world-asia-china-45313074

[6]

BMW (2017)

[7]

10.1111/jscm.12073

[8]

10.2307/41410417

[9]

Chen L. Y.(2016 December 21).China's Uber for trucks Huochebang fetches $1 billion valuation. Bloomberg.https://www.bloomberg.com/news/articles/2016-12-22/china-s-uber-for-trucks-huochebang-fetches-1-billion-valuation

[10]

Chen L. Y.(2017 November 27).China's top Uber‐for‐trucks apps agree on a merger.Bloomberg.https://www.bloomberg.com/news/articles/2017-11-27/china-s-top-uber-for-trucks-apps-are-said-to-agree-on-a-merger

[11]

China Daily. (2017 August 14).Mobile app Yunmanman set to become Didi of cargo firms.China Daily.https://www.chinadaily.com.cn/business/tech/2017-08/14/content_30573964.htm

[12]

Chinanews. (2017).The daily orders of OfO are about 32 million.https://www.chinanews.com/cj/2017/10-24/8358985.shtml

[13]

Cision. (2020 January 24).The car sharing market in China forecast to 2025: Market is shifting from traditional to modern travel with the penetration enabled by mobile internet and electric powertrain solutions.PR Newswire.https://www.prnewswire.com/news-releases/the-car-sharing-market-in-china-forecast-to-2025---market-is-shifting-from-traditional-to-modern-travel-with-the-penetration-enabled-by-mobile-internet-and-electric-powertrain-solutions-300992761.html

[14]

Clover C.(2016 August 4).China ride‐hailing subsidies to continue.Financial Times.https://www.ft.com/content/3a917e2e-59fa-11e6-8d05-4eaa66292c32

[15]

Institutional Theory and Institutional Change: Introduction to the Special Research Forum

M. Tina Dacin, Jerry Goodstein, W. Richard Scott

Academy of Management Journal 10.2307/3069284

[16]

Dai S.(2018 August 25).Didi rocked by second passenger killing in three months despite additional security measures.South China Morning Post.https://www.scmp.com/tech/article/2161341/didi-rocked-second-passenger-killing-three-months-despite-additional-security

[17]

Dandan Z.(2020 July 13).Pandemic hinders growth of car‐sharing business.China Daily.https://www.chinadaily.com.cn/a/202007/13/WS5f0bc279a310834817258f3b.html

[18]

10.2307/2667016

[19]

DiDi. (2021 January 28).2020: Our extraordinary year in DiDi numbers.https://www.didiglobal.com/news/newsDetail?id=983&type=news

[20]

DiDi. (2022).Overview.https://ir.didiglobal.com/overview/default.aspx

[21]

DiMaggio P. J. (1988)

[22]

Building Theories from Case Study Research

Kathleen M. Eisenhardt

The Academy of Management Review 10.2307/258557

[23]

Theory Building From Cases: Opportunities And Challenges

Kathleen M. Eisenhardt, Melissa E. Graebner

Academy of Management Journal 10.5465/amj.2007.24160888

[24]

Euroactiv. (2015 September 25).Uber ordered to shut Brussels service within 21 days.Euroactiv.https://www.euractiv.com/section/digital/news/uber-ordered-to-shut-brussels-service-within-21-days/

[25]

Evcard. (2022).About Evcard.https://www.evcard.com/about/

[26]

10.1177/000276427802100411

[27]

Feng C. &Ye J.(2020 December 27).The rise and fall of Mobike and Ofo China's bike‐sharing twin stars.South China Morning Post.https://www.scmp.com/tech/start‐ups/article/3114932/rise‐and‐fall‐mobike‐and‐ofo‐chinas‐bike‐sharing‐twin‐stars

[28]

Forbes. (2019).The sharing economy is still growing and businesses should take note.https://www.forbes.com/sites/forbeslacouncil/2019/03/04/the-sharing-economy-is-still-growing-and-businesses-should-take-note/?sh=343e4bf04c33

[29]

Full Truck Alliance. (2022).Company overview.https://ir.fulltruckalliance.com/

[30]

10.2307/3069292

[31]

10.1002/smj.3148

[32]

Seeking Qualitative Rigor in Inductive Research

Dennis A. Gioia, Kevin G. Corley, Aimee L. Hamilton

Organizational Research Methods 10.1177/1094428112452151

[33]

Global Newswire (2022)

[34]

Glusac E.(2021 March 2).Farther faster and no sweat: Bike‐sharing and the e‐bike boom.The New Work Times.https://www.nytimes.com/2021/03/02/travel/ebikes-bike-sharing-us.html

[35]

Institutional Complexity and Organizational Responses

Royston Greenwood, Mia Raynard, Farah Kodeih et al.

Academy of Management Annals 10.5465/19416520.2011.590299

[36]

10.5465/amj.2006.20785498

[37]

10.1080/00207543.2021.2017053

[38]

10.1111/jscm.12164

[39]

Hajji J. (2023)

[40]

10.1002/joom.1073

[41]

Jepperson R. L. (1991)

[42]

10.1108/ijopm-06-2019-0450

[43]

10.1108/s0742-3322(2012)0000029013

[44]

10.1111/j.1937-5956.2006.tb00241.x

[45]

Khanna T. "Why focused strategies may be wrong for emerging markets" Harvard Business Review (1997)

[46]

Khanna T. (2013)

[47]

10.1177/0007650314567641

[48]

The Transformation from Traditional Nonprofit Organizations to Social Enterprises: An Institutional Entrepreneurship Perspective

Wai Wai Ko, Gordon Liu

Journal of Business Ethics 10.1007/s10551-020-04446-z

[49]

10.1002/sej.1439

[50]

10.1080/10196780701296022

Showing 50 of 106 references

Metrics

15

Citations

106

References

Details

Published: Apr 27, 2023
Vol/Issue: 69(5)
Pages: 764-793
License: View

Authors

D

Dun Li

Management School Guizhou University Guiyang China

T

Tobias Schoenherr

Broad College of Business Michigan State University East Lansing Michigan USA

Cite This Article

Dun Li, Tobias Schoenherr (2023). The institutionalization of sharing economy platforms in China. Journal of Operations Management, 69(5), 764-793. https://doi.org/10.1002/joom.1253

The institutionalization of sharing economy platforms in China

You May Also Like