The purpose of this article is to study what platform-related user factors influence the employment potential of a lean platform for self-employed professionals.
Abstract
Purpose
The purpose of this article is to study what platform-related user factors influence the employment potential of a lean platform for self-employed professionals.
Design/methodology/approach
The article employs the system data of a Dutch platform firm, which include consumers looking for painters (N = 17,224) and self-employed painters (N = 1,752) who pursue client acquisition by submitting proposals (N = 101,974). This data is analysed using non-parametric tests.
Findings
Study of this platform shows that the platform functions as a channel of acquisition for self-employed professionals. This lean platform enables matching of information of supply and demand, thereby facilitating processes of acquisition. The number of competitors, distance to a potential job and non-standard proposals are statistically significant factors that influence whether a consumer is interested in a proposal. Effect sizes are very small.
Research limitations/implications
This platform is a two-way market for information about service jobs, which excludes a price setting mechanism. The findings of this study cannot be generalized to other forms of platforms.
Practical implications
The market for service professionals is very local; therefore, the platform firm may alter the algorithm to accommodate this. Self-employed professionals should approach using the platform in the same way as normal forms of acquisition.
Social implications
This particular type of two-sided market is an extension of regular forms of acquisition by creating “weak ties” through the platform.
Originality/value
The article uses a unique data set to study the impact and limitations of digitalization of the (labour) market for service professionals.