Assessing the Potential of Sustainable Value Chains in the Collaborative Economy

Abstract

The current business paradigm entails a narrow, profit-centered and managerially-focused nature. This article proposes that the study of the collaborative economy necessitates an inevitable shift in the conventional business paradigm and suggests that the institutional school of marketing thought, in general, and the electric theory of marketing, in particular, offers a useful theoretical framework for investigating the theoretical impact of the collaborative economy on the value chain. Uber is used as an illustrative case, on which the electric theory of marketing is applied, to demonstrate how the archetype of the collaborative economy theoretically impacts the value chain and contributes to sustainability in the value chain in the transportation services industry. The study provides further insights in the form of suggestions and propositions for ensuring sustainability in the value chain of collaborative systems.

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