Strengthening capital-intensive companies in technology competition through innovation platforms

Purpose This paper investigates how capital-intensive companies, especially in the automotive sector, navigate the challenge of balancing significant technological investments against market demands for asset-light strategies. It examines the use of innovation platforms as a strategic solution for mediating these goal conflicts and sustaining competitiveness in a technology-driven market. Design/methodology/approach The study analysed 286 automotive companies from Europe, North America and Asia through a quantitative survey conducted in 2022, focusing on companies using innovation platforms. It applied partial least squares structural equation modelling (PLS-SEM) to assess the relationships between the use of innovation platforms, relational rents and performance. Findings The research found that companies using innovation platforms can achieve early-stage relational rents through partnerships and resource sharing, although these benefits have not yet translated into profitability. Companies in the sample are still developing their partner network, and while they experience collaborative advantages, they face initial challenges in converting these into financial gains. The study highlights the critical role of scaling in the network, complementarities in production, limiting the outflow of resources and capabilities besides modularisation in achieving long-term profitability. Originality/value This study contributes to the literature by providing empirical evidence on how capital-intensive companies use innovation platforms to balance technological investments and asset-light pressures, a topic with limited previous research. It underscores the long-term potential of such digital platforms in innovation ecosystems in generating value and the need for patient investment in promising platform effects. The findings support the strategic value of innovation platforms as capital-intensive industries face intensified competition from high-technology companies.