Why Consumers’ ‘New Power’ Will Change Marketing

Abstract

Because the sharing economy compels firm-stakeholder dynamics towards a multi-stakeholder market orientation (MSMO), the structures and power dynamics of sharing-economy firms differ markedly from traditional-economy firms. In this vein, we explore sharing-economy firms’ dependence on stakeholders (new power), the continual threat of new entrants (exponential organisations), and how these conditions combine to create additional stakeholder value by shifting Pareto efficient outcomes. We also discuss how previous scholarly efforts to impel traditional-economy firms toward stakeholder orientations failed because these firms generally treated stakeholder satisfaction as an optional rather than crucial goal for achieving sustainable competitive advantages. Finally, we argue that sharing-economy firms continue to disrupt markets, which increases every firm's need to explore value creation in theory and practice.