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.

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Jul 6th, 12:00 AM

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.