How digital platform-provided resources enable SMEs to develop organizational capabilities: An organizational learning perspective

Abstract

The emergence of digital platforms has transformed industries in which small and medium-sized enterprises (SMEs) operate. Existing literature suggests that the use of third-party digital platforms offers SMEs critical resources that allow them to enhance their market performance. However, our understanding of the mechanisms through which digital platforms enable SMEs to improve their performance remains limited. In this paper, we advance this understanding by drawing on an in-depth qualitative inquiry investigating how platform-provided resources enable SMEs to develop critical organizational capabilities that allow them to adapt to the dynamics of digital markets. We build on an organizational learning perspective to analyze interviews with retail SMEs adopting a leading platform in Southeast Asia. The findings reveal two complementary capabilities that retail SMEs develop through platform-provided resources: value configuration and value delivery. We identify key learning mechanisms mediating the relationship between SMEs’ access to platform-provided resources and their development of organizational capabilities. While previous research focuses on what benefits digital platforms offer SMEs, this study explains how they enable SMEs to attain those benefits. We discuss the implications of our findings for how SMEs navigate the evolving realities of the platform economy. • Provide timely insights into how digital platforms improve SMEs' performance in the platform economy. • Identify learning mechanisms enacted by SMEs to translate platform-provided resources into organizational capabilities. • Shift focus from what benefits platforms offer SMEs to how SMEs achieve those benefits.