Externalization in the platform economy: Social platforms and institutions

Abstract The growing platform economy has revived the debate on applicability of internalization theory in contemporary contexts. In moving this forward, we draw insights from hybrids research and property rights to complement school. Our core contribution lies a reconceptualization platforms as hybrid organizational form enabling exchange between owners complementors. Using social an example, propose that improvement host country’s intellectual protection will increase multinational platform’s (MNP) level internalization, firm’s governance capabilities may weaken effect institutions its operation mode. theoretical analysis yields new beyond received view internationalization builds assumption internalized proprietary resources. We conclude theory, overarching paradigm IB, remains adaptable forms digital economy.