Does culture matter for platforms and their complementors?

Abstract

This study explores the influence of culture on complementors’ competitive advantage in a platform setting. The research answers two important questions, 1) How do individualistic cultural traits impact the complementors’ success in a given platform setting and 2) How does this effect change when the platform lowers its level of intermediation? To address these issues, the study exploits a dataset of a global microlending platform. The results indicate that the Hofstede individualism dimension has a negative effect on the competitive advantage of complementors and that this negative effect increases with a corresponding decrease in the platform intermediation.