National Platforms in a Globalized World: Competitive Strategies and the Role of the State in the Case of Russian Digital Platforms

Abstract

Digital platforms are data-driven firms that mediate transactions online. Effectively, platform markets are monopolies driven by network effects and “winner-take-all” outcomes. Only a few countries, such as China and the United States, have developed large numbers of competitive national firms. How can local platforms emerge and mature outside major economies and successfully compete with global competitors? This dissertation examines the case of Russia, one of the few national internet segments that has produced domestically competitive platforms in key functions, such as search, social media networking, and e-commerce. Drawing upon archival research, interviews, company reports, and case studies of Russian platforms (Yandex, VKontakte, Odnoklassniki, and Ozon), this qualitative study explores Russia’s success in breeding advanced platforms and demonstrates that firms’ strategies for creating and leveraging network effects may stem from a social, economic, and political context. Overall, studying Russian platforms contributes to the emerging studies on platform capitalism and its country-specific variations.