Decentralized Governance of Digital Platforms

【Author】 Chen, Yan; Pereira, Igor; Patel, Pankaj C.

【Source】JOURNAL OF MANAGEMENT

【影响因子】13.508

【Abstract】Over the past decade, the rise of blockchain technology has led to the emergence of a growing number of decentralized platforms that are governed less by platform owners and more through community efforts. The emergence of blockchain platforms offers a unique opportunity to examine alternative structures for platform governance and to develop a theory around the value of centralized, semi-decentralized, and decentralized governance. Drawing on mechanism design theory, we evaluate the tradeoffs between centralization and decentralization and hypothesize semi-decentralization as a higher performing governance structure. Empirical evidence from the blockchain industry shows that decentralization has an inverted U-shaped relationship with platforms' market capitalization, developer attention, and development activity. We further examine factors driving the decentralization of platform governance and find that digital platforms of the infrastructure layer-relative to those of the application layer-have a tendency to become more decentralized. This tendency, nevertheless, can be offset by experienced leaders to achieve semi-decentralization. Overall, this study contributes new insights on the characteristics, antecedents, and consequences of effective platform governance.

【Keywords】platform governance; shared governance; decentralization; digital platform; blockchain; mechanism design

【发表时间】2020 MAY

【收录时间】2022-01-02

【文献类型】观点阐述

【主题类别】

区块链应用-实体经济-数字化平台