Online Service Providers: A New And Unique Species Of The Firm?

This chapter discusses Online Service Providers ( OSPs) and gauges whether they can be defined as a new and unique species of the firm. It is concluded that OSPs have many typical features such as their intermediary role, the dependence on network effects, and a capacity to grow rapidly across borders via the online medium, but that there are few features that distinguish them as a unique species. Yet, it is argued that the intertwined social relation with end-customers, often in co-development milieu combined with the lack of a direct monetary relationship, could be one such unique feature. Therefore, an important challenge, particularly for countries in the global South, is to construct and implement policy frameworks in order to ensure that OSPs and the people using them are embedded in a dynamic but fair environment.