Paper Type
Complete
Paper Number
PACIS2025-1993
Description
Digital platforms face intense competition where information strategy becomes crucial for value creation. We develop a novel competition-based information value framework examining how competitive dynamics influence the effectiveness of different information cues (factual, emotional, and attractiveness) in platform environments. Analyzing 1.4 million projects from a leading crowdfunding platform, we find that in competitive environments, factual cues negatively impact performance while emotional and attractiveness cues contribute positively. As competition intensifies, the influence of content-based cues diminishes while contextual attractiveness cues become increasingly crucial. Conversely, in less competitive settings, factual cues enhance performance while emotional cues show inhibitory effects. This framework advances platform strategy theory by revealing how competitive intensity shapes optimal information strategies, offering practical guidelines for platform participants to enhance their performance through strategic information design.
Recommended Citation
Li, Haohao and Liu, Luning, "Information Strategy in Platform Competition" (2025). PACIS 2025 Proceedings. 10.
https://aisel.aisnet.org/pacis2025/dig_plat/di/10
Information Strategy in Platform Competition
Digital platforms face intense competition where information strategy becomes crucial for value creation. We develop a novel competition-based information value framework examining how competitive dynamics influence the effectiveness of different information cues (factual, emotional, and attractiveness) in platform environments. Analyzing 1.4 million projects from a leading crowdfunding platform, we find that in competitive environments, factual cues negatively impact performance while emotional and attractiveness cues contribute positively. As competition intensifies, the influence of content-based cues diminishes while contextual attractiveness cues become increasingly crucial. Conversely, in less competitive settings, factual cues enhance performance while emotional cues show inhibitory effects. This framework advances platform strategy theory by revealing how competitive intensity shapes optimal information strategies, offering practical guidelines for platform participants to enhance their performance through strategic information design.
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