MANAGERIAL INNOVATIONS IN THE DIGITAL ECONOMY: INSIGHTS FROM PLATFORM-BASED COMPANIES TO LINEAR FIRMS

Abstract

Introduction. The relevance of this study stems from the fact that the challenges of digital transformation and the digitalization of business management are not universal; their content significantly depends on the company type, which is defined by the way value is created for customers. In the digital economy, alongside traditional firms operating within linear value chains (hereinafter referred to as linear companies), platform-based companies – whose activities are built upon digital business platforms (DBPs) – are playing an increasingly prominent role. Being an owner of a digital business platform, a platform company manages not only its internal operations but also a dynamic community of external participants interacting within a unified digital environment. This governance model necessitates fundamentally new approaches, methods, principles, and tools that markedly differ from traditional management practices developed for hierarchically structured, internally oriented organizations. The objective of this research is to pinpoint the significant managerial innovations that are arising in platform-based companies by conducting a comparative analysis of management models in both traditional linear businesses and platform-based enterprises. Additionally, it seeks to explore the opportunities and challenges linked to the adaptation of these innovations within the unique context of linear businesses that are undergoing digital transformation.

Materials and methods. The study employs a structured literature review in the field of managing digital platform-based companies. The methodological foundation of the research is content analysis of both domestic and international publications, carried out within the framework of the emerging paradigms in digital management. Furthermore, the empirical data have been used, obtained from an examination of digital management practices within Russian enterprises. Practice-oriented data were drawn from business cases and managerial experiences of participants in executive education programs, particularly the MBA program «Strategic Management» at Novosibirsk State University.

Results. The article presents an original perspective on the specificity of digital management in platform-based companies. Applying theoretical analysis, the author has determined significant distinctions between linear and platform-based enterprises within the framework of the digital economy. The analysis has been conducted across multiple dimensions, encompassing the types of assets and fundamental business processes, strategies for creating customer value, and methods of scaling. Special emphasis has been placed on the unique attributes of management systems typical of each business category. Management traits associated with linear and platform operational logics have been identified, facilitating the recognition of particular managerial innovations that are inherent to digital management within platform-oriented enterprises. The study also demonstrates the potential for transferring selected elements of digital management into traditional (linear) business models. It has been noted that, under conditions of digital transformation, management systems in linear companies are gradually evolving by adopting practices typical of platform firms – such as algorithmic integration into decision-making processes, development of new performance metrics based on digital data, implementation of customer self-service systems as sources of feedback and analytics, and the use of digital models (digital twins) to interact with external stakeholders in the value creation process. Thus, digital management – initially developed within the context of platform-based business – is progressively diffusing into linear organizations, acquiring features of a universal trajectory in the evolution of both management theory and practice.

Discussion. Platform-based companies act as catalysts for transforming traditional management approaches in the digital economy, introducing new objects, functions, and principles of managerial activity. However, when transferring managerial innovations developed in platform contexts to linear-type companies, these innovations are to be adapted to the specifics of sequential, process-oriented operations. The study shows that in linear companies, partial algoritmization of management processes is feasible, due to their structural and operational logic. Two critical challenges emerge in this context: first, the agency of management digitalization – i.e., clarifying the human role amid increasing automation and algorithm-driven decisions; and second, working-out of new performance metrics that adequately reflect the logic of digital management. A particularly promising tool for enhancing partner relationships in linear companies is the use of digital twins – virtual models of objects, processes, and interactions – that increase transparency, predictability, and flexibility in collaboration with external participants in the value chain.

The contribution of this study to the theory and practice of digital management lies in three key aspects: a clear conceptual distinction between linear and platform-based businesses as fundamentally different objects of management; a systematic typology of managerial innovations characteristic of platform-based companies; a substantiated background for the feasibility and conditions of transferring selected digital management practices from platform to linear business contexts.

These findings suggest that the paradigm of digital management requires rethinking of the theoretical foundations of management and a transformation of how these theories are implemented in practice within the digital economy. Nevertheless, as this paradigm is still emergent, many of its dimensions – including boundaries of applicability, integration mechanisms, and long-term effects – require further theoretical analysis and empirical validation.