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The digital economy has fundamentally altered how firms innovate, shifting the emphasis from linear value chains to platform-based architectures that unlock multi-sided interactions and ecosystem-wide value creation. This narrative literature review synthesizes conceptual insights from peer-reviewed studies published in leading management and information systems journals. It examines platform-driven mechanisms that enable novel forms of value co-creation, data monetization, and ecosystem orchestration while navigating inherent tensions between value creation and capture. Core themes include the architecture of multi-sided markets, value co-creation practices, AI and data-enabled transformations, governance and monetization strategies, and evolutionary pathways in digital ecosystems. By comparing theoretical perspectives across these streams, the review reveals how platforms reduce transaction costs, amplify network effects, and integrate artificial intelligence to build dynamic capabilities. It also surfaces unresolved challenges such as platform governance in complex ecosystems, ethical implications of AI-driven revenue models, and the sustainability of value capture amid rapid technological change. The synthesis concludes by identifying promising research directions, including cross-ecosystem interactions and hybrid governance models. This conceptual overview equips scholars and practitioners with an integrated understanding of platform-based value creation as the cornerstone of competitive advantage in the digital era.