A Review of How Firms Strategically Lead by Innovating Technology Within the Sharing Economy – A Case of Opportunities, Disruptions, Criticisms and Regulations

Abstract

This article reviews how firms strategically lead by innovating technology within the sharing economy; highlighting the opportunities, disruptions, criticisms, and regulations associated with innovative technology. The article begins by defining sharing economy and its scale. Sharing economy is a complex phase with countless consequences that is adopted to define economic activities made possible through online transactions. To take a fair share of the market, companies use innovative technology. For example, eBay and Amazon utilize technologies such as Web 2.0 and mobile Apps to rid of market intermediaries, streamline transactions, and bring goods and services near people. Uber also allows customers to use a mobile application to reach drivers and this facilitates the sense of nearness. The use of technology in the sharing economy has many advantages. However, it carries with it some corrosive effects on the business community and society at large. Critics of technology are championing for stricter regulations. The sharing economy witnesses some pertinent disruptions caused by companies that innovate technology. They include unfair competition, lower entry barrier, regulations, quality standards, and financial sector risks.

Keywords: Sharing Economy, Sharing Platform, Mobile Application, Chicken and Egg Strategy, Porter's Five Forces, Force Field Analysis, Technology, e-Business

DOI: 10.7176/EJBM/11-12-01

Publication date: April 30^th 2019