The digital transformation of markets has triggered a profound paradigmatic shift from product logic—centered on firm-internal value chains, direct transactional exchanges, and proprietary resource control—to platform logic, in which value emerges through orchestrated multi-sided interactions, ecosystem participation, and digital intermediation. This theory-development conceptual article synthesizes and extends 28 peer-reviewed studies to explain how digitally mediated market structures drive this transformation and reshape three core strategic dimensions: firm value-creation mechanisms, competitive dynamics, and strategic intermediation. Traditional product logic confines value creation to linear, firm-centric processes, whereas platform logic unlocks network effects, complementor generativity, and relational coordination that transcend firm boundaries. Competitive dynamics evolve from attribute-based rivalry to ecosystem-level contests centered on governance attractiveness and selective promotion. Strategic intermediation shifts from transactional brokerage to dynamic ecosystem orchestration, internalizing externalities and aligning multi-sided incentives. We identify persistent theoretical gaps in the integrative causal pathways linking changes in market structure to strategic outcomes and introduce a novel conceptual model that unifies these elements. Six formal propositions articulate the mechanisms of transformation, offering a coherent explanatory framework for digital business and management scholarship. The theory underscores that successful navigation of the shift demands new capabilities in ecosystem governance and market coordination, thereby advancing understanding of how firms can sustain advantage in platform-dominated economies.
Institute for Management, Business, and Accounting Studies