How digital platform capability builds competitive advantage in platform firms: The mediating role of intrapreneurship and user value co-creation

This study examines the relationship between digital platform capability (DPC) and competitive advantage (CA) in platform companies, focusing on the mediating roles of intrapreneurship and user value co-creation. Using a two-wave, time-lagged survey of 236 platform firms, we tested our hypotheses with polynomial regression and response surface analysis. The results indicate that DPC, particularly integration and reconfiguration capabilities, is positively associated with CA. Moreover, both internal and external value co-creation factors, namely intrapreneurship and user value co-creation, significantly mediate this relationship. Our findings also suggest that CA is enhanced when intrapreneurship and user value co-creation are balanced, but declines when their development is uneven. These insights deepen our understanding of how platform companies can align internal and external value co-creation processes to leverage DPC for sustainable competitive advantage.