How niche platforms scale after the entry of platform leaders

Abstract
Scaling is a key strategic concern of platforms. Previous research examined scaling strategies that platform leaders pursue to achieve and sustain in winner-take-all outcomes. What remains undertheorized are scaling strategies pursued by mature niche platforms – established platforms specializing in niches – after platform leaders entered their segments, which poses an existential threat for these platforms. Based on an in-depth longitudinal study of a specialized e-commerce platform who faced Amazon Business as new competitor, we identify two pathways. First, a niche platform mobilizes non-market and relational resources to accelerate reputation building and gain access to previously untapped user groups. Second, it builds market resources aligned with regulatory demands to enter a new industry segment. The framework grounded in these findings explains how niche platforms can reposition under competitive threat and scale within regulatory constraints.

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Organised by
ABRI and the KIN Center for Digital Innovation