Creating Shared Reputational Value while Managing Informational Asymmetries across Borders: The Platform Business Paradox

Abstract

This article explores the interplay between the platform business model and the creation and distribution of shared reputational value. Broadly speaking, platform businesses serve to connect consumers with producers and often rely on a global network to create value. A paradox exists in that while platform economies should reduce informational asymmetries through signaling, the attribution of signals for reputational outcomes is imprecise when so much value creation is shared. This article helps practitioners understand the creation of shared reputational value with respect to the platform business model and employs the CAGE framework to highlight challenges of operating across national borders.