How does platform network centrality influence firm performance? The roles of strategic orientation and platform monitoring

Purpose Previous studies have explored the direct effect of platform network centrality on the performance of firms operating on e-commerce platforms (known as platform participants), but conclusions are inconsistent. This study investigates the underlying mechanism and boundary condition to elucidate how platform network centrality influences platform participants' performance. Design/methodology/approach Through a questionnaire survey, we obtained multisource data from 155 Chinese firms operating on e-commerce platforms. Findings Based on resource dependence theory, our results revealed that platform network centrality positively affects firm performance through innovation orientation and imitation orientation. Moreover, platform monitoring strengthens the effects of platform network centrality on innovation orientation and imitation orientation while also positively moderating the mediation effects of those orientations. Research limitations/implications This study used cross-sectional data. Longitudinal studies could be applied, and other underlying mechanisms could be studied from the perspective of firm internal structure. Practical implications Platform participants should enhance their strengths to attract network partners and adopt appropriate strategic orientations based on platform network resources. Findings also indicate that firms should focus on the platform's monitoring capability and degree of standardization when choosing which e-commerce platforms to join. Originality/value We contribute to the literature on platform network centrality by examining the underlying mechanisms by which platform network centrality affects firm performance. We also broaden studies related to platform institutional factors and expand the application of resource dependence theory to the e-commerce platform context.