The Role of Same-side and Cross-side Influences in the Multinational Diffusion of Two-Sided Digital Platforms
(A2025-125916)

AUTHORS

Paul Parker, University of Kansas; Yeji Lim, California State University, Fullerton; MURALI MANTRALA, University of Kansas

ABSTRACT

Two-sided digital platforms have proliferated across geographically distinct locations. However, the impact of how diffusion forces affect each side of these platforms across geographies has yet to be fully characterized. We develop a two-sided diffusion model that captures the growth of crowdfunding platforms across countries. We analyze how each side of a platform in a specific country influences the other side’s growth while also considering the effect of the platform’s growth in other countries. Using data from Kickstarter, we examine the diffusion forces within and across 25 countries. Our dataset consists of adopters on both sides of the platform: those founding projects and the backers who fund the projects. We find that innovators fuel the growth of creators to a greater degree than backers. Furthermore, we find that same-side participation is a greater driver of growth than cross-side participation. Finally, we identify “influencer” countries for each side of the platform.