Transaction Platform Governance and Conflicts: A Configuration Approach

Transaction platforms, such as Amazon and Uber, are emerging as central players in many segments of the global economy. Extant research has primarily focused on the impact of network effects on platform growth and rivalry, and very little scholarly work has studied governance systems of platforms. Building on property rights theory, we propose that governance rules influence conflicts between platforms and seller partners. We test our proposition in the online auction and mail-order (SIC: 5961) industry. We first identify the sets of rules that platforms use in seller selection and engagement based on configuration theory. Next, utilizing fsQCA methodology, we identify multiple configurations of governance rules that lead to low platform-seller conflict. We also find that divergent configurations are contingent upon platform strategies. Theoretical and empirical implications of the study on platform governance and property rights are discussed.